Study On The Profit Model In TK Inc.

In 2004 November China’s first professional video website- the music network was established. From then on, there has been the explosive development of video website.2006 is considered the first year of Chinese video sites. And the network video industry chain gradually formed. After TK, Tudou, Music Watch are becoming popular,other online media have also set up video sites. After four years, many video sites appeared on the market, which shows its vigorous prospects. When the Internet giants join in the industry, the competition is increasingly intense. Although TK is not the first company of video sites, it has achieved amazing results. Currently, the profitability has become a bottleneck in the development of video site industry, TK also has not found a clear profit model.From the sides of the brand penetration and the market share, TK is the leader in the Internet video industry. Therefore,there are refer` ence for the entire video website industry from the analysis of the TK’s profit model.In this thesis, the video site TK as the research object, according to its current advertising revenues mainly members income supplement profit model for analysis, integrated use of the Du Pont analysis, Porter’s five forces model and SWOT analysis three tools, summed exist the issues and strategies to explore 2014 TK undertaken, and the corresponding management recommendations.This research is made up from four parts. The first part outlines the background and significance. The second part describes the current domestic video sites profit model. The third part analyze the TK profit model from a financial, competitive and strategic perspective, and analyze the profit model problems by Du Pont analysis, Porter’s five forces model and SWOT analysis. The fourth part introduces the new strategies in 2014 that TK has just started out and put forward corresponding management recommendations for the profit problems, by that providing theoretical and practical support for domestic Internet video industry to expand its profit model.