Research On The Innovation Of Business Model Of Phoenix Town Company

Improving the quality of cultural tourism industry is a major problem faced by Chinese tourism industry. As a typical category of cultural tourism, the ancient towns have some development bottleneck problems including overloaded operations, similar business models, fierce competition of the homogenized products, etc. During the process of ancient town’s cultural tourism transformation and upgrading, it is now an urgent task to provide the cultural tourism product of higher quality through business model creation. In the past studies, scholars seldom investigated the components and paths of business model innovation for the scenic companies of ancient towns. The corresponding case studies about it were scarce.Based on the literature review and the research findings in the field of business model, the author first built a component system of business model of the Phoenix Town Scenic Company. Then by adopting the case study method, the author explored which components in marketing model, resource model and benefit model had been innovated in the business model of the Phoenix Town Scenic Company.in the meantime, the author also investigated the competitive advantage about profiting,costing and tourists services which innovations bring about. At last, from the perspective of system, the author summarized the business model innovation paths of the Phoenix Town Scenic Company.The results of this study showed that the Phoenix Town Scenic Company’s business model innovation took a path of “interest- resource- marketing model- value realization”which was done from inside to outside. At the first, by balancing the relationship with every type of stakeholder, the company figured out the transaction structure of all stakeholders that worked for different stages. One thing remained constant was the characteristic of “ enterprise leading, government coordinating, win-win for multiple parties”. The support offered by the local government and the innovative leadership of the entrepreneur had always been the key of the success of its business model innovation. Secondly, the company integrated and developed the tourism resources and produced the innovative tourism products to meet the market needs. Thirdly, with the help of highly creative leadership, highly efficient teamwork and highly cooperative government, the company continuously innovated the marketing and promoting methods to drive the brand construction and upgrading of the ancient town. Lastly, it made it true that the value was shared by the scenic company and the government, which stimulated the value proposition upgrading of the Phoenix Town scenic area.The innovation of this paper is researching the business model innovation of ancient town tourism company for the first time, because the existing achievements have not been given the constituent elements and complete path of tourism company’s business model on the whole. This paper combined the two aspects of study, and researched the ancient towns tourism company business model innovation from the perspective of the system.