A Research On The Profit Model Optimization Of Suning Commerce Under The Background Of Continuous M&A

As the Internet develops rapidly,its technological strengths have brought people many benefits with each passing day.The daily life has become more convenient,and people's consumption more diversified,signaling that China has entered a fresh stage with many innovations and repaid expansion.Faced with the overwhelming impacts of the Internet,traditional industries has met their development ceilings,for their profits becoming increasingly hard to collect.However,the Internet has also brought new opportunities.Therefore,traditional industries have started to put more emphasis on the Internet platform to accelerate the transformation of their profit models,in the hope of seizing more market share,gaining more returns and keeping a better,more sustainable development.As an important tool to expand capital,optimize resources and seize market share,merge and acquisition(M&A)has gradually been utilized by traditional enterprises to transform their profit models.And appropriate M&A is beneficial for them to adopt different marketing model,expand business range and save time.As a leading retail enterprise,Suning has,based on its development conditions and long-term development strategy,merged and acquired LAOX,CRM,Redbaby,Manzuo,PPTV,TTK Express since 2009,becoming a pioneer enterprise in transforming profit model and forming the Cloud Business model.However,Suning has witnessed the falls in its performance after the changes in its profit model.That's why this thesis has taken Suning,a typical retail enterprise,as an example to analyze the transformation from traditional retail to the Internet one through the financial performance analysis.First,the thesis has studied the related literature and theories about profit model,continuous M&A and performance.Second,the thesis has,for the purpose of the comprehensiveness of the analysis,begun its study via stock value changes,financial indexes and non-financial indexes.In this research,event analysis has been used to evaluate to the short-term financial performance of Suning's continuous M&A,and financial index method has been adopted to evaluate the long-term financial performance of Suning in such aspects as profitability,solvency,efficiency and growth.Besides,another two indexes,namely,the market share and users' satisfactionhave been added to analyze the financial performance of Suning.And the analysis has demonstrated that current liabilities in a higher proportion of total liabilities,financial risks and integration costs have been on the rise,and profitability of core business of Suning on the sharp fall and results of multiple continuous M&A on the wane.Based on the analysis mentioned above,the thesis has provided 3 suggestions to optimize the profit model of Suning: first,the optimization of capital structure,fund-raising and investment;second,the emphasis of the advantage of low cost and control of period expenses;third,better management of the relations between itself and suppliers.