Research On Enterprise Profitability Of Wushang Group Co.,Ltd. Based On Value Chain

In recent years,the business environment of enterprises has undergone radical changes with the development of the times.The outbreak of social public health events has disrupted the market economic order in China,and with the extensive use of the Internet and the development of e-commerce,traditional retail enterprises have been affected by e-commerce in all aspects,with slower sales growth,high costs and low sales margins.At the same time,the store rent of traditional retail enterprises is very high,so many traditional retail enterprises have lost money,and even some traditional retail enterprises have to quit the industry.In such a turning period of development,it is necessary for enterprises to seek opportunities to change their development methods and improve profitability to gain new competitiveness.Profitability is closely related to all parts of the value chain and plays an important role in the future development of the company.As traditional profitability research is more limited to the data given by financial statements,it does not take into account the specific management situation of the company,while value chain as a new perspective and analysis method can help enterprise managers to analyze the overall situation of the company,identify problems,and make management improvements.This paper takes Wushang Group as the research object and analyzes it by combining theory and case study.The theoretical aspect first summarizes and composes the relevant research results at home and abroad,and then explains the relevant concepts and theoretical foundations of value chain and profitability.Then,a case study is conducted to briefly introduce the development history and profitability of Wushang Group Co.,Ltd,the subject of the study,and to elaborate on the current situation of profitability and value chain of Wushang Group,so as to have a complete understanding of the overall business situation of the enterprise.The value chain theory is introduced to subdivide the internal value chain and external value chain categories according to the nature of the company,and a new profitability index analysis system is constructed.Based on this index system,the entropy value method is used to score the comprehensive profitability analysis of each segment of the internal and external value chain of Wushang Group in the past six years,and to grasp the overall profitability of Wushang Group.Finally,the profitability of the enterprise is further analyzed based on the value chain using the index analysis method,and the average level of China’s retail industry is also selected for horizontal comparison with Wushang Group.Through the analysis,it is found that the enterprise has weaknesses in the internal value chain: production link profitability ratio,sales link profitability performance,distribution center division,after-sales system,human resource maintenance ability and external value chain: upstream and downstream link profitability external security force,peer competitiveness,so to improve competitiveness in the above aspects,scientific planning,improve personnel quality,close upstream and downstream relationship,study peer companies so as to improve enterprise Profitability.