The Research On Financial Performance Of CR Sanjiu Related To Profit Model Analysis

Nowadays the health care reform of China is deepened,and the regulation of medical market is strengthened,which lead to a slowdown of the development of pharmaceutical industry.Facing the change of macro environment,pharmaceutical enterprises need to optimize their profit model constantly.The profit model that is suitable for the enterprise can bring excess profits to the enterprise,and the effect of the profit model can be finally reflected by the financial performance of the company.Therefore,when analysig the financial performance of an enterprise raleted to its profit model,we can find the problems existing in the operation process and solve them more effectively so as to respond to changes in the industry.CR Sanjiu is the object of this study.As a benchmarking enterprise in the pharmaceutical industry,the design,implementation of its profit model and financial performance are worth studying.The comparative analysis method and case study method are used in this paper.Through comparing the financial performance of CR Sanjiu with others which take different profit models,we can find the influence the whole industry chain model had on CR Sanjiu's financial performance.Then starting from the optimization of the profit model,put forward the suggestion to improve financial performance of CR Sanjiu.The main profit models of pharmaceutical enterprises are classified into 3 types in this paper,they are product model,brand model and whole industry chain model.According to the characteristics of CR Sanjiu's profit model elements,its profit model is whole industry chain model,which means CR Sanjiu attaches importance on products,and invests on the pharmaceutical research and development,production and sales,and makes full use of the company's brand effect to create value for the enterprise and the customer.In order to explore the impact of the whole industry chain model on the company's financial performance better,we selected two other enterprises which take product model and brand model respectively,and compared their financial performance indicators with that of CR Sanjiu.We found that compared with the contrast,the financial performance of CR Sanjiu is not outstanding.The reason is the company only focuses on extending the industrial chain length,ignoring the quality and cohesion of each link,which leads to some consequence.Specifically,the products are lack of core competitiveness;the huge investment in the marketing and brand building of downstream industry chain results in high cost rate;the resource integration after M&A is not good.To solve the problems above,the author puts forward some suggestions on the R&D,marketing and integration of mergers and acquisitions of the company,so as to optimize the profit model and improve the company's financial performance.