Business Model Design For D Electric Co.Ltd

With the development of the network economy and information technology, more and more enterprises subvert the rules of the industry with a unique business model. While achieving business success, they are changing the society and consumers’ life. Business model began to attract the attention widely. How to build a business model theoretical framework has become the focus of academic research. After 30 years’ rapid economic growth, China’s economic development model can’t meet the new demand, and economic development also suffered the bottleneck. Especially in traditional industries, many companies are faced with the dilemma of transition. The business model innovation and redesign is bringing hope for those traditional companies.By recalling domestic and international business model, the author defines the basic concepts of business model firstly, then analyzes the basic elements of the business model, economics motivation, operation mechanism, and finally designs a new systematical business model. In this paper, the business model is defined as a logic system that creating more values by using integrated elements of the enterprise. The business model is designed to optimize and upgrade the entire value of the logic system. Business model composes three elements:value proposition, value creation, value capture. The business model is designed according to the above three factors. Firstly, the process of designing of value proposition:Depending on the external value chain and market segments, the process including corporate position in the value chain and the role of design, the company’s target market and target customers design and the value design. Secondly, the process of designing value creation:Depending on the internal and external value chain and operating systems, ultimately the design comes down to operating system design, and operation system is made up by business process design and organizational design. Thirdly, the process of value acquisition design:Depending on the profit model, the process including the value link mode design and profit platform design. And which is evaluated by A using Balanced Score Card afterwards.Under the guidance of the business model design theory, this paper analyzes D Company’s industry background, business conditions and the operation status, and creates the new business model. By the meantime, SWOT method is used to analyze D Company’s opportunities and threats, strengths and weaknesses. Based on value proposition, value creation and value capture, the new business model for D Company is re-designed, and finally which is benefit for D Company’s transformation and regaining competition advantage.The author hopes that through D Company’s business model redesign, more traditional industries could jump out from the inertia thinking, and redesign the innovative business model to regain vitality by using their own advantages and external opportunities.