Research On Business Model Driving Enterprise Financial Strategies

A successful business model is an integration of business competition strategies, innovation of strategy, a structure system that can be realized and a set of institution arrangement, which forms a system of decision and practice with unique competitive advantage and through the integration of the organization itself, customers, partners, employees, shareholders, or supply chain stakeholders to achieve efficient and sustainable profit growth. So that,.Business model largely determines the continuous affection on the profitability of products, the integration efficiency on industrial chain, and the expansion level of industry or products. These three dimensions determine the company’s financial characters, and affect the company’s financial strategies.This paper first illustrates the business mode of "Product+Service" adopted by Hangzhou Hangyang Co.Ltd, which is called Hangyang for short, from the six elements of business mode. Based on this research, together with the study on the financial characteristics on the basis of three dimensions, it is clearly seen that the enterprise turns to the higher profitable gas products, integrates upstream and downstream on the industry chain, implements regional expansion rapidly, and therefore forms dilated investment strategy, multi-channel financing strategies and appropriate allocation strategy. We could draw a conclusion that enterprises should set up financial strategy according to the unique business model.The innovation in this paper can be illustrated from the following three aspects. First of all, the internal logic relationship between business mode and financial strategy has been studied and it is obvious that the former stimulates the latter. Secondly, the theoretical frame of how business mode stimulates financial strategy has been constructed, which enriches the existing theoretical research. Lastly, based on the case of Hangyan Company and the research on how the company makes use of financial strategy according to its own business mode, this theory has been applied into practice, which is significant to other enterprises.