Research On The Profit Model Of Xiaomi Group

This paper takes Xiaomi Group as an example,and analyzes the profit model from the components of the profit model and combines the business layout and internal operations of Xiaomi Group.Through the research on Xiaomi Group's business,it has found that it has formed a big pattern of “Hardware + New retail + Internet service”: designing and producing hardware products around user needs,and then selling these cost-effective products through its own efficient new retail channels.Intelligent hardware products,thus building a large self-owned user platform to provide users with a variety of Internet services.Under this pattern,Xiaomi has also continuously established and improved its own profit barrier.Through comparative analysis with competitors in the same industry,it can be found that although Xiaomi's profit model has many advantages and features of light asset operation,its profit model still faces many risks: industry-related risks,risks associated with profit points and others.In terms of risks,the integration of internal resources and the improvement of efficiency still need to be strengthened.In combination with the theoretical basis of the profit model and the specific analysis of the risks,this paper puts forward the following targeted suggestions for the problems existing in the profit model of Xiaomi Group: strengthening the application of new technologies,expanding the user's regional network,and expanding the product.The further improvement of the financial sector business is in order to provide a reference for the construction and improvement of Xiaomi Group's profit model.At the same time,we also hope to provide certain reference and suggestions for related enterprises in the same industry in the stage of strategic transformation.