Research On The Financial Performance Of Light Asset Business Model Of Heilan Home

At the beginning of this century,Mc Kinsey Co proposed the concept of light assets for the Bright Dairy.As a business model,asset-light operation make it possible for enterprise to concentrated in research,design,brand building and sales with limited resources.Through outsourcing production,which can bring optimize financ ial performance and more business value.With the development of the economy and the maturity of the industry,the light assets have been recognized by more and more enterprises.However,from a practical point of view,the light asset operation has failed to succeed.For that reason,this artic le takes Heilan Home as the case to carry on the research to the financ ial performance of the light assets business model.In this paper,the normative research method is used to review the literature and related theories about the light assets,business model,the relationship between business model and financ ial performance at home and abroad.Secondly,based on the literature review and related theories,the paper selects the data from 2010 to 2015 to analyze the financ ial characteristics and financial performance of the business model.Combined with the characteristics of financial mode,the specific asset business model is study from the production of products,brand construction,supply chain management and sales channels build ing,which has connection with financial performance.The study found that with the business model of light-asset,the financ ial performance of the Heilan Home is better overall,but there are also shortcomings.The good thing is that through the asset light business model,with outsource production,production costs was reduced.With the production outsourcing and value chain management,the company can invest more money in research,design and brand build ing,which improve the company's profitab ility.Furthermore,the completion of the comprehensive sales channels brings more revenue for the company.With the unique sales model,the value of enterprises was enhanced also.The shortage is due to the increase of inventory in the current assets and the reduction of inventory turnover,operating capacity and solvency declined.Therefore,the company should strengthen the inventory management,the overall optimization of the value chain and the integration of resources.I hope that through this study,the financial performance of the Heilan Home can be improved,and it can also provide some reference for other enterprises adopting the light asset business model.