Research On Innovation Approaches Of LED Enterprise Business Model

The LED lighting industry is one of the most promising emerging strategicindustries in the21stcentury and has been paid great attention to by ChineseGovernment with its advancement and the wide application of it products, andespecially its contribution to energy conservation and emission reduction. Thebusiness model is considered in the commercial world the magic weapon for the PostFinancial Crisis Era in the21stcentury and its innovation is vital to the developmentof the LED lighting enterprises in China. To grasp market opportunities and staycompetitive, the LED lighting enterprises need to choose the right business modelinnovation route. Starting with the elements composing the value chain and businessmodel, a business model innovation route for LED lighting enterprises is proposed inthis thesis. The author hopes that this study serves to provide some advice for thedevelopment of the LED lighting enterprises in China, and the enterprises may, inlight of their actual situation, set up their own unique business model selectively andperiodically to achieve profitable revenue growth and stay competitive.In this thesis, the concepts related to the business model and its elements at homeand abroad are firstly sorted out meticulously, and the studies on the current businessmodel innovation are summarized from the perspective of the innovation drive,barrier and route. Meanwhile, the source and role of value creation are analyzed basedon the resource-based theory, value chain theory and innovation theory, etc. Secondly,the development status of the LED lighting enterprises in China is analyzed by PEST method, and their current business models are summed up, including OEM/ODMModel, BOT Model, Financing Lease Model and EMC Model. Three business modelinnovation routes are put forward from the perspective of value chain, namely throughextending industrial chain, separating industrial chain and establishing cooperativenetwork. Then, from the perspective of the elements composing the business modeland based on target consumer demand, value proposition, distribution channels, theway to make money and core strategy, an innovation route for LED lightingenterprises is further proposed, and its feasibility is verified with a specific casewherein the effectiveness of the business model of Handson is evaluated with fuzzycomprehensive evaluation method. Finally, the author summarizes the thesis,addresses its limitations and makes some suggestions as to the directions for futureresearch.