Research On The Effect Of Business Model Innovation On Financial Performance

The factors that affect the financial performance of an enterprise involve many aspects.The pros and cons of the business model will have an extremely important impact on financial performance and business growth.If a business enterprise wants to maintain its competitive position,it must innovate and optimize its own business model.This article conducts a case study on the impact of business model innovation on corporate financial performance,selects Suning and Gome as case companies,and uses four business models: strategic positioning,key processes,key resources,and profitability models.Analyze and research the business model of Suning and GOME,and compare and analyze the financial performance of the two companies,and then analyze the impact of business model innovation on financial performance.Suning began to transition to “E-commerce add store-shop add retail service provider” cloud business model after 2011,and the former Suning-based cloud merchant mainly used the commercial operation mode of offline retail chain.Through the four major elements of the business model,the theoretical research framework analyzes and studies the business models of Suning and Gome.The study found that the biggest difference between the two companies in the business model lies in the difference in strategic positioning.The cloud merchant model adopted by Suning attaches great importance to online development in strategic positioning.At the same time,the sales of goods are no longer confined to electrical appliances,and multi-channel and full-category business model models are developed.Gome focuses on the offline entity stores,still revolving around home appliance retail business.After analyzing the above-mentioned business model strategic choices,this paper analyzes the financial data and financial indicators of the Suning before and after the transition from 2009 to 2016,and compares the financial performance before and after the transition of the Suning business model.Analyze the impact of the business model transformation on the financial performance of Suning,and remove the influence of other factors beyond the business model on financial performance through the vertical comparison of Suning's own performance,and improve the preconditions for comparison with Gome's performance.At the same time,this article will horizontally compare the financial performance of Suning and Gome in order to study the financial performance of Suning in the process of business model transformation and scientifically and reasonably analyze the financial statements,thus clearly indicating the Suning The role of development models in financial performance.Based on research results,the following conclusions and inspirations are summarized: 1.Business model innovation will have a positive impact on financial performance;2.Business model innovation has the greatest impact on profitability;3.Traditional retail business model transformation is necessary;4.The pure O2 O model does not meet the needs of business model innovation.