Research On Profit Model Of King’s Luck From The Perspective Of Value Chain

Baijiu products are important consumer goods.In 2022,China promulgated national standards such as the "Industrial Terminology for Baijiu",which revised the regulatory management requirements and market guidance mechanisms for the liquor market,and further guiding the industry into a quality-oriented and brand-based standardized development.The Baijiu industry needs to adapt to social changes,take the initiative to transform,pursue high-quality development and accelerate the process of nationalisation.At the same time,with the release of consumer demand in the digital economy and the increase in market concentration,competition among liquor enterprises has become increasingly fierce,with a relatively single mode of competition.Therefore,if liquor enterprises want to adapt to the new economic environment and break through to gain excessive profits,it is especially crucial to optimise their competitive strategies and improve their profit models.The profit model is the basis for value creation,and only through continuous improvement of the profit model can enterprises achieve sustainable development.To address the current situation of a single profit model for liquor enterprises,this thesis takes a liquor brand in Jiangsu("King’s Luck")as the object of study and examines its profit model.Firstly,this thesis reviews the literature related to profit model and value chain,which provides the basis for the following research.Secondly,a preliminary analysis of the profit model of King’s Luck is conducted through the theory of the five elements of profit model.Once again,a evaluation system is constructed and the Entropy Weight-TOPSIS method is used to comprehensively evaluate the operational effectiveness of the profit model of King’s Luck.Then,based on the impact of value chain construction on profit models,a thorough comparative analysis was conducted from the perspective of the value chain to identify some problems in the company’s profit model.Finally,corresponding optimization suggestions are proposed for the identified problems.This thesis focuses on the profit model of "King’s Luck".The research shows that the current profit model has certain value creation capabilities,However,there are still some shortcomings,such as weak cost control,slow follow-up of online marketing,low investment in R&D resources,imperfect human resource allocation,low efficiency of upstream and downstream operations,and a trend towards localization of brands.On this basis,the profit model optimisation strategies proposed in this thesis from a value chain perspective will be relevant,and the evaluation of the profit models of liquor enterprises in the course of the study will have some general adaptability.The relevant strategies can also provide some reference for other enterprises in the Baijiu industry.