The Case Studies On Konka Group Profit Model

After years of development, China ’s household appliance market entered into theoligarch competition era leading by a few large household appliance chain giant. However, inthe increasingly fierce competition market environment, China’s household appliance retailchain enterprises rely heavily on short-term price war and promotion war in order to surviveand develop, and pass portion operating costs to the supplier. As the result, the supply chainsystem efficiency drops in the entire household electrical appliance market., It is difficult forthe suppliers to form unique profit pattern, and which causes the enterprise faces dilemma.Household appliance enterprise take the homogeneity of the profit model of maximum scaleand price war, which lead to production overcapacity in the whole business, and weaken themanufacturer’s core competitiveness. However, profit model is not short price strategy andsales promotion method, but the Key factor of the enterprise good operation. As one of theleading group of domestic appliances, the Konka Group’s profit glides ceaselessly in recentyears. In this paper, field survey and data collection are the main research methods, the relatedprofit pattern theory and financial tools were used to conduct case analysis on the KonkaGroup’s profit model. Two new profit models of Konka Group were also studied combinedwith its own characteristics and the overall operating situation of household electricalappliance industry.First of all, according to the related research results on the profit model in currentacademic circles, detailed introduction of profit model theory are described in this paper, andwhich was used to provide the necessary theoretical basis and analysis tools for the caseanalysis. The Konka overall situation and profit model are described in detail too.Secondly, after the introduction of the household electrical appliance industry ’s basicsituation and profit model, the Konka Group’s profit model was analyzed from every aspect,and the Competitiveness was Compared with the similar enterprises, existing problem of theprofit model was tried to find out too.Finally, the case inspiration was draw from the profit models of Konka Group. Thespecific optimization suggestion was put forward from two respects: cost control andmarketing strategy, and the feasibility of two new profit model was attempted to explore. Wehope this case analysis can provide useful reference to the Konka group for long-termdevelopment, and provide certain reference on healthy development of other householdelectrical appliance enterprises.