Research On The Business Model And Innovation Of Chinese Electric-appliance Chain Companies

In recent years, electric-appliance chain companies developed rapidly and achieved remarkable sales growth and market promotion. However, in fierce competition environment, Chinese electric-appliance chain companies have to depend on price war. Using the channel advantage pass working costs onto supplier. It not only leaded to manufacturers contradictions, but also made companies hard to form their own particular business model. Ultimately lead to companies facing adverse conditions. Nowadays, the competition is the competition between business models. Comparing with international electric-appliance chain companies, there is still room for Chinese companies in the business model for improvement and innovation.Based on the related literatures, this paper firstly brings forward the research background about electric-appliance chain companies in business model innovation. And the necessity and significance of studying business model innovation are explained. According to the operation process of the electric-appliance chain companies, the business model elements are defined as the value proposition, value chain, organization structure, relation network and profit model, forming the basic analysis frame of the business model. After then, the paper introduces the motive mechanism of business model innovation. It has intrinsic and extrinsic motivation influence factors. External factors include capital market, enterprise culture, consumer demand and technical progress. Internal factors include entrepreneur ability and organizational learning capability. On the basis of this, this paper puts forward the specific countermeasures of the business model innovation in electric-appliance chain companies, including improving core competitiveness, mining in two or three level of markets, establishing a new relationship, choosing a suitable mode of logistics and seeing customer service as a new profit growth point. At last, the paper establishes the evaluation system for innovation from maneuverability, uniqueness, profitability, competitiveness and sustainability of the five aspects.This paper makes systematic research on electric-appliance chain companies from new view of business model, using the theory methodology. These researches provide the new perspective for electric-appliance chain companies, which will enrich the theories of business model. Besides, from the need of management practice, it can provide more clear strategy of innovation and enable enterprises to grasp the dynamics of innovation process comprehensively. It will improve the core competitiveness of companies continuously from creating new profit space and deal with the challenge of foreign companies better.