Research On The Profit Model Of Pet Food Enterprises Based On Value Chain Theory

In recent years,social and economic development,accelerated urbanization,changes in the age structure of the population and family demographics have led to a diversification of people’s spiritual needs and leisure,making pet ownership an important way of life,as well as gradually cultivating fashion trends and pet culture.China’s pet industry is currently in a rapid development stage.from 2012 to 2016,the five-year compound growth rate of China’s pet industry was 49.1%,ranking first among all industries in terms of development speed.However,the development of China’s pet industry is still in the process of exploration.With the rapid development of the economy,factors such as the products produced by an enterprise and the size of the enterprise do not fully determine the development of the enterprise,but the profitability model also plays an important role in the development of the enterprise.Profit model is a way to create profit,and the value creation of an enterprise is realized through the links in the value chain,so the two are closely related.Therefore,the profitability model can be analyzed from the perspective of enterprise value chain,and the problems of the value chain links can be found,the reasons for them can be analyzed,and targeted advice can be given to optimize the profitability model of the enterprise.Based on the value chain theory,profit model theory and enterprise core competence theory,this thesis conducts an in-depth and systematic study on the optimization of enterprise profit model by using literature research method,case study method and comparative analysis method.This thesis takes Petpal Tech as the research object and introduces in detail the development history,operation,the current situation of the industry in which Petpal Tech is located and the current situation of the profit model of Petpal Tech.Using the theories of value chain and profit model,the relationship between the two is explained,and the elements of Petpal Tech’s profit model are corresponding to the relevant activities of the value chain,and the value chain system of the enterprise is constructed.Based on the perspective of value chain,we analyze the various links affecting Petpal Tech’s profitability model and point out that Petpal Tech has the following problems:insufficient investment in R&D,single product structure and weak self-branding;high procurement cost due to fluctuating raw material prices and decreasing supplier concentration;rising labor cost and high cost in production;and concentrated revenue source in sales.Finally,according to the above problems,the following suggestions are targeted: first,Petpal Tech should increase investment in R&D,enhance the competitiveness of enterprise products,expand the dimension of enterprise products,and then enhance the market competitiveness of Petpal Tech;second,optimize the procurement management system,increase high-quality suppliers and raw material procurement sites;third,improve the level of production automation,reduce labor costs;fourth,based on existing customers,actively develop new customers;use social e-commerce to create three-dimensional channels.