The Mechanism Of Business Expansion Model On Corporate Financial Liquidity

Before 2015,LE SHI INTERNET INFORMATION&TECHNOLOGY CORP.,BEIJING developed rapidly and the business expansion mode adopted by Le.com is the vertical construction of the industrial chain with Le group as the whole.As the leading enterprise with the highest total market value of Internet software and service industry,Le.com stepped toward the vertical industry chain construction and cooperate vigorously with the goal to build seven ecosystems.Towards business model,system of ecological system of Le.com is the complete industrial chain for "Platform + Content+ Terminal + Application".Terminal service and membership distribution service is a major part of revenue,accounting for nearly 90%of the revenue,which profit model are the " Anti subsidy " of hardware and" Copyright + User + Increment "model.After 2015,the financial liquidity of the Le.com faced problems.The shortage of funds caused by the mobile phone ecosystem has been spreading rapidly,which has affected the listing sector.The sudden problems have brought great pressure to the financial liquidity of Le.com.This paper studies the problem of how the business expansion model affects the financial liquidity of Le.com and whether it can be considered as the choice of this mode has led to the financial problem of Le.com today.Most of the existing researches focus on the past and current situation of Le.com from the perspective of profit model,related transactions and financial indicators and analyze the financial and business problems of Le.com,which separate it from the business expansion mode adopted by Le.com.This paper will use case analysis,literature analysis and other research methods to study the financial liquidity of Le.com from the perspective of its business expansion model,on the base of which this paper will point out the root of the problem.The research objectives and expected findings include:First,the business expansion mode of Le.com is envisaged and implemented under the guidance of the company strategy and business model.The model is based on the integrity of the LeEco ecology,making the Le.com closely linked to the unlisted system of LeEco.Second,under the guidance of the business expansion model,the Le.com face financial liquidity problem.This problem appears and spread in the unlisted business system and passes through several channels to Le.com,and ultimately affects Le.com.Third,the root of the financial liquidity problem is the business expansion model which is the industrial vertical construction based on the LeEco ecology.This case brings some inspiration to other listed companies in strategic positioning and dealing with financial liquidity.The value of this paper is through the analysis of the mechanism of business expansion model on corporate financial liquidity in Le.com,policymakers can find out the current financial problems more clearly and prevent this problem through the company's expansion and financial information in practice and provide reference for other listed companies and operators.