Research On Profit Model Of H Company Based On Value Chain

With the obvious acceleration of government and enterprise informatization process,the office software industry is facing unprecedented development opportunities.By 2020,China’s office software users have exceeded 700 million,and the market scale has exceeded 10 billion.The development prospect of the office software industry is broad.Now it has become a highly valued problem of software enterprises.Profit model is the key to reflect an enterprise’s core competitiveness and realize value creation,and the creation of enterprise value cannot be achieved without the value chain.The exploration of value chain can help enterprises find high value-added links,develop core competitiveness and create value for enterprises,so it is of great significance to analyze profit model from the perspective of value chain.After reviewing relevant literature,it is found that relatively few studies have analyzed the profit model of office software enterprises from the perspective of value chain.In view of the fact that H Company is the leading enterprise in the domestic office software industry and changed its profit model in 2015,this paper takes H Company as the case study object.Taking H Company as the case study object,this paper studies the profit model of H Company from the perspective of value chain through literature research,case analysis and comparative analysis.First of all,through the literature research method,the research background and significance of this paper are elaborated,and domestic and foreign scholars are summarized on the value chain,profit model and profit model based on the value chain.At the same time,related concepts and theoretical basis involved in this paper are introduced to provide theoretical support for the writing of this paper.Secondly,it introduces the profit model elements and value chain of H Company,analyzes its internal relations,and summarizes the profit model of H Company,including software licensing model,individual subscription model,institutional subscription model and Internet advertising promotion model.Then,from the perspectives of internal value chain and external value chain,it analyzes the influence of value chain on the profit model of H Company,that is,the reasons why it changed the profit model in 2015.Then,it analyzes the effect of H Company’s existing profit model from three aspects: profitability,profit quality and economic added value.It is found that the change of profit model can significantly improve the company’s profitability,profit quality and enterprise value.Then,from the perspective of value chain,it analyzes the possible problems in the profit model and finds out the reasons,and draws the conclusion that there are still some problems in the profit model,such as the conversion rate of individual users’ payment is not up to expectations,the subscription volume of institutional customers needs to be strengthened and the income proportion of Internet advertising promotion business continues to decline.Finally,the paper puts forward suggestions on the profit model of the company: improve product operation,strengthen profit sources,expand institutional customers,increase the profit target and precise advertising,and stabilize the profit target.