The Transformation Of The Shanghai Steel Union Business Model And Its Performance Research

With the development of information technology and economic globalization,the competition among enterprises has become increasingly fierce.The business model has become an important way for companies to compete in the market.Since entering the 21 st century,the rapid development of China's e-commerce has led more and more Chinese companies to begin to engage in e-commerce in the original business.Shanghai Iron and Steel Electronic Commerce Co.,Ltd.(hereinafter referred to as “Shanghai Steel” Corporation),as the leading company providing steel and information services in China,officially launched the “steel and silver e-commerce” platform at the end of 2013,opening the steel spot trading market.However,the huge investment in the e-commerce platform in the early stage and the lack of experience in operating e-commerce have resulted in a significant decline in the company's performance after the Shanghai Steel Association's business model transformation at the end of 2013 and a huge loss in 2015.This has transformed the Shanghai Steel Association.The business model has brought a huge test.This article takes Shanghai Steel Union as a case for analysis and studies the financial reports of Shanghai Steel Union in the past six years from multiple dimensions.This article mainly uses the financial analysis method,EVA evaluation method,non-financial indicator analysis method,and paired sample T test to perform empirical statistical test and comparative analysis of the business indicators of Shanghai Steel Union,and to study the changes in financial indicators that have led to Shanghai Steel Union in recent years.The main motives are based on the analysis of the factors affecting the performance of Shanghai Steel Union,drawing conclusions from this paper,and providing suggestions for increasing the profit sources of enterprises,improving service mechanisms,and reducing accounts receivable.Through the case analysis of this article,it can provide experience for other enterprises in the iron and steel electricity supplier industry at the initial stage.Through the research on the transformation of the business model of Shanghai Steel Union and its performance,we can draw the following conclusion: Shanghai Steel Union conducted business model transformation at the end of 2013.Since the launch of the steel spot trading business,the company's profitability and solvency have significantly increased.Decline.Shanghai Steel Union needs the support of logistics,warehousing and finance for the development of the steel and silver e-commerce platform.The necessary condition for the construction of logistics bases and intelligent warehousing is the massive investment of capital.The long-term recovery of these capital investment economic benefits leads to a higher performance of enterprises in the early stage of transition.difference.In addition,Shanghai Steel Union,which is mainly engaged in iron and steel information business,has a lack of market share after its transformation.Therefore,expanding the market share of enterprises through “increasing revenue without increasing profits” leads to a decline in corporate ROE.The main reason for the decline in the company's performance after the transformation of the business model.However,because the company is in the initial stage of transformation,the "pain points" brought about by these achievements are also the stages that Shanghai Steel Union must go through in order to develop the company's early strategy and expand its market share.