Research On Profitability Model Of Large-scale Chain Supermarket

Profitability Model，a brand-new perspective from which an enterprise’s strategies are studied,can assist enterprises a lot in analyzing their operation with a clear objective in mind, making sometimely adjustments and obtaining sustainable profits.This paper, on the basis of the elaboration of Profitability Model, provides a specific analysis oflarge-scale supermarket’s inner value chains and link control, targeted market, customer loyaltyguarantee measures, profitability pass and relation network. Subsequently, it shows its particularinterests in the Regional Advantage concerning the strategic development of the supermarkets. Finally,a SWOT analysis of the profitable model, with Vanguard supermarket taken as an example, is carriedout and then a conclusion is drawn that Profitability model is a value chain or an added value chain ofsupermarkets’ operation system and any link cost and profit change may influence the final results.Target market is the source of the long-term profits of an enterprise and Profitability pass is away leading to the profits. Relation network shows a relationship between supermarket’s profitabilitypass and its outside environment, and it is also a link between the components of Profitability Model.Regional advantage is the foundation on which supermarkets develop and make profits in that it canhelp to reduce the waste of resource and operation cost. In conclusion, this paper aims to construct aprimary framework for the profit model of supermarkets and provide instructions for thedecision-making, based on the study of Profitability Model, target market’s guarantee measures,history and characteristics of supermarkets, relationship of supermarket with customers, governmentand cooperators, etc.