A Case Study On The Financial Crisis Of Letv

In the face of global economic integration and the competitive environment,enterprises in order to be able to quickly improve business performance,keep competitive advantage in market competition,constantly seeking strategic transformation and upgrade,The expansion of enterprise strategy through the new way of setting up and merging,especially in the Internet industry.Of course,successful strategic expansion can achieve the synergistic effect of business and finance,resulting in the improvement of enterprise operation efficiency and core competitiveness.However,if the diversification strategy fails,it will not only create synergies between the business sectors of the company,but also bring the risk of resource diversification and other unbalance among enterprises,which can lead to serious financial crisis.As the first profitable listed company of video,the diversified expansion strategy of Letv is different from other enterprises in the industry,so it has been attracting great attention.Moreover,the recent financial crisis has made the Letv become the focus of all sectors of society.The case study sample of this paper is the financial crisis event of Letv company.Based on the time series,it describes the development process and financial crisis outbreak of Letv since the listing,and discusses the causes and mechanism of the financial crisis.The financial crisis of letv has strong timeliness and practical significance.First of all,the paper elaborates on the research foundation of enterprise strategic expansion and financial crisis,describe the development of Letv and the related characteristics of the financial crisis.The core business of Letv is not prominent in the development stage of the expansion stage of the cross boundary expansion from the vertical expansion stage dominated by video.At the same time,due to the simultaneous multi-business layout of Letv,its investment income is not in direct proportion to the scale of business layout,so the financial situation of Letv is deteriorating,and the financial risks of enterprises gradually increase and accumulate to the outbreak of financial crisis.Secondly,the key part of the thesis is the case analysis.In order to deeply analyze the causes of the financial crisis of Letv,this paper,based on the impact factors of the financial crisis of listed companies,looks at the problems existing in the development of Letv from the perspective of strategic,financial and corporate governance,and analyzes how these factors can trigger the financial crisis of Letv network.Finally,through the case study of the financial crisis of Letv,it is found that enterprises should maintain the sustainability of enterprise operation by guaranteeing the positive growth of enterprise operating income and reasonable arrangement of debt structure in the premise of rational implementation of expansion strategy.Meanwhile,enterprises also need to improve their internal governance structure and establish and improve relevant risk control system so that enterprises can effectively prevent the occurrence of financial crisis and maintain a benign and stable development trend.