Study On Business Model Based On Value Chain For WELDPRO

With the development of cyber-economy and coming of the age of big data, it is the primary question for all of the entrepreneur and managers to think about how to innovate their company business model with the existing resources and abilities. Most of the studies are in recent l0years, and becoming the frontier topic. But different scholars studied in different views, and there is no final conclusion of its definition, structures, models, etc.This thesis summarize most of the research and theory about business model, both domestic and abroad. Firstly it defines the connotation of business model, based on different ideas of what is the concept and meaning of business model. Secondly, we find out the connection between business model and value chain, and build an analysis frame of designing business model from the perspective of value chain. Thirdly, this thesis choose an inverter welding and cutting company—ELDPRO as the representative of manufacturers, to verify this design frame to be of practical maneuverability. Fourthly, to make sure this business model will work well for WELDPRO continually, we discuss the safeguards such as human resource, company structures, and culture. And finally, we summarize the whole thesis and present some questions to be solved and the direction of further research. Hope this thesis could be some inspiration for some Chinese minor enterprises’innovation on business model. In most of the research of management, the scholars are using big companies such as GE, Coca cola, McDonald, CNPC as cases, which provide authority to these studies because of their reputation and brand influence. But these companies are only1%in the total number of enterprises, can these theories really apply for other99%minor companies? It is quite doubtful and that’s why this paper chose WELDPRO to study business model.Same as marketing, a good business model is also the logic of creating value, which can obtain higher profit for its company and elevate the core competitiveness. Value chain provide a reasonable and effective tool for Chinese manufacturers to design and innovate business model under this abundant and competitive market environment.