Research On The Innovation Of Traditional Manufacturing Business Model

Many emerging companies created new business models and expand the market rapidly with the help of the Internet technology. The hot topics entrepreneurs and relevant scholars focused on about how the transformation of traditional enterprises happened through business model innovation, and how to gain competitiveness. At present, the study of business model is still at an early stag, the theoretical system is too immature to guide the enterprise into business model innovation. So, the study of practical application on business model innovation is even more significant.This paper based on the typical case of Hisense Electric transformation, taking the television industry as a representative o f the research object. Hisense Electric’s business model has been described and analyzed, and we put forward new views from aspect of service supply chain on the basis of the original research.First, this paper makes a detailed analysis and elaborate the business model and business model innovation of relevant concepts, elements and frame combing, and on this basis, we added economic management theory related to business model. Second, we make an analysis and a summary for the Hisense Electric current strategy and market environment with the help of "3-4-8" architecture system of business model which contain the elements such value proposition, value network, value maintenance and value realization. We analysis the existing business model of Hisense Electric from the four aspects. And then through the information collection and interview survey, we evaluate the business model of Hisense Electric and analysis the market environment of Hisense Electric combining SWOT framework analysis tool.After we summarized the advantages and disadvantages of its business model at present and the possible opportunities and challenges of market environment that Hisense Electric may facing now, we put forward some existing problems of the business model. Aiming at the existing problems, we propose Hisense Eletic to make some improvement around the value optimization, network optimization and shape optimization, the partnership income source optimization and so on. In order to ensure that business model innovation design can be practice successfully, this paper also puts forward several safeguard measure aiming at possible risks.