Research On The Profit Model Of Suning Commerce Group

With popularization of Internet,improvement in the living standard and flourishing development of national electronic commerce,the market scale is increasingly extending;however,as electronic commerce industry do not have enough profit,and proper professional talents are not adequate,most enterprises have no profits yet.In this thesis,taking the leading enterprise in O2 O,Suning Commerce Group as a case,we will analyze its profit model so as to put forward some reasonable suggestions towards profit model and operating strategies for reference by other enterprises.This thesis analyzes the profit model of Suning Commerce Group by application of literature research method and comparative analysis approach.In the part of relevant theory introduction,the study gives a particular description about origins,definition and classification of profit model,as well as those components of profit model.Next,a specific analysis will be given about the components of Suning's profit model and relevant financial indexes.It will select its competitors,Jingdong Mall and GOME,to make a contrastive analysis from the perspective of components of profit model.Therefrom,the study summarizes some serious problems existing in the profit model of Suning Commerce Group.Afterwards,it will discuss the advantages and inadequacies of Suning's profit model in industrial competition.Finally against these existing problems and inadequacies,it will propose some effective improvement measures to provide helps to development of Suning Commerce Group.Through the research on Suning's profit model,the thesis finds some problems that may influence enterprise development,in the aspects of profitability,online and offline business,and logistics.Problems shall be solved in time.From the perspective of profitability,decline in profitability has been mainly caused by that Suning has not developed its powerful competitive edge in the early stage of transformation.Besides,its tendency towards online business makes its dominant position in offline stores weakened to a certain extent.Its multi-field operation has increased its costs.A differentiation brand strategy should be taken to satisfy personalized demands of consumers.Its advantages in offline stores shall be taken to consolidate its market shares of primary business.The emerging market of primary business shall be explored from rural and foreign market.Its operation revenues from offline stores shall be consolidated to turn the tide of declining profitability.Problems in online and offline business include collusion problem between two kinds of business,improper flow introduction of mode,low occupancy of online business,relatively bad user experience.By introduction online flows to offline,Suning should promote its flexible production capacity of supply chain,and build a brand new offline customer experience mode to improve operations management and customer management.In terms of logistics,Suning's problems exist in transportation,delivery,infrastructure construction,resource distribution,site selection of logistics center and other relevant aspects.Therefore,Suning should improve logistics information system,and focus on logistics talent cultivation and infrastructure construction,optimizetion network terminal,and scientifically selection site of logistics distribution center.