Research On The Profit Model Of Baidu Takeout

Since 2015,the takeout 020 industry has grown and boomed at a high speed. As takeout O2O platforms mushroom, the competition is increasingly fiercer in the takeout 020 industry of China. Baidu Takeout, as one of the few giants, has practiced subsidy policies since its founding. Now it has 15 million registered users, with an annual growth rate of 800%. However, instead of bringing profits, the rapid development and growth causes more and more losses to Baidu Takeout, accompanied by some operation and management problems impacting profits. Hence, solving these problems and finding a suitable profit model for Baidu Takeout will be of great significance to turn losses into gains for the company.Guided by Adrian Slywotzky and Gary Hamel’s theories of profit model, this paper makes an in-depth exploration and study on Baidu Takeout’s profit model with literature review, questionnaire survey and inductive analysis. First, based on an in-depth investigation on Baidu Takeout and an analysis of Baidu Takeout’s operation, the author finds out Baidu Takeout’s existing problems in management, operation and profit model. Specifically they include unreasonable commission charge and comprehensive charge model, high cost of logistics, hopeless profits, unthreatening competitive ranking to businesses, unoptimistic prospect, doubtful time difference between guarantee deposit and settlement, striking food safety problems, poor supervision over commercial tenants as well as commercial tenants’low service and informatization level. Second, focus is placed on analyzing Baidu Takeout’s profitable factors with the application of profit model theories. Not only are strategies made, but also a profit model portfolio suitable for Baidu Takeout is proposed. Finally, an entire detailed profit model program is designed for Baidu Takeout from five aspects such as profit point, profit source, profit object, profit leverage and profit barrier. To be specific, based on market segments of families and white-collar workers, this profit model portfolio combines switch board model, pyramid model and derivatives model. Apart from proposing the differentiation strategy, the paper also points out the key and difficult points to practice the program.