Haier's “internet+” Profit Model And Its Financial Evaluation

“Internet+” was firstly proposed by Premier Li Keqiang on the 12 th National People's Congress.On May 19,2015,the State Council issued Made in China 2025,which highlights integration of information technology and manufacturing in order to realize “innovative manufacturing and intelligent manufacturing”,the upgrading goal of China's manufacturing industry.“Internet+ Manufacturing” is the development trend now.The essence of “Internet+” is to implement innovation-driven strategy and promote the Internet extending to every sector.Though the concept of “Internet+” was proposed in 2015,some far-sighted enterprises had predicted that the Internet would bring huge changes to people's life as early as the rise of Internet.Before “Internet+” was proposed,enterprises with strategic vision and consciousness of innovation have started to integrate Internet into their businesses and internal systems.They are actually the early practitioners of “Internet+” from then on.Haier is an outstanding one.The progress of Haier's “Internet+” is full of reforms and innovations and involves all businesses,procedures and staff.In the Internet Era,Haier has been making efforts to use the Internet in every aspect possible since 2005 and keeps exploring Haier's “Internet+” development mode.Moreover,since then,Haier has made a series of adaptive reforms from its strategy to the operation mechanism including flattening,decentration and platform of the organizational structure,changing the flow structure from inventory sales mode into order-oriented production mode,changing the manufacturing mode from mass manufacturing into module production and mass customization,making production more intelligent and forming an ecosystem connecting things with things and people with things,and making more crossover cooperation for mutual growth.This thesis firstly systematically introduced profit models and the concept of “Internet+”,and then elaborated reforms made by Haier in the Internet Era in time sequence,in particular its measures on strategies,organizational structure and operation management.Furthermore,the author introduced Haier's “Internet+” profit model and discussed the source of customers,marketing channel,product structure,cost effectiveness and core competence by analyzing its target,growth points,profit boosting measures and profit barriers.In addition,through a comparative financial analysis of Little Swan,Midea,Gree and Hisense Kelon,the author evaluated reform of Haier in the Internet Era concerning its “Internet+” profit model.The author analyzed structure,cash reliability and continuity of Haier's earning quality based on the financial indicators,and also made Du Pont Model analysis and factor decomposition toward Haier in order to find out key factors influencing Haier's profitability.The results show that Haier profit good quality,profitability,indicating that Haier "Internet +" profit model to attract customers with strong,reasonable product structure,profit measures rich and effective,profitable barrier solid and reliable.However,lack of lies in the management,Haier can't keep up with the strategy,High management costs.Through study of Haier's “Internet+” profit mode,the thesis summarized experience and lessons of Haier concerning transformation in the Internet Era,which gives enlightenments to other manufacturing enterprises.