Research On Capital Chain Management Of Internet Enterprises Under Diversification

In recent years,the rapid development of Internet industry has accompanied with fierce market competition.Some Internet companies choose to diversify its core business to improve competitiveness,but capital chain management problems come with it.The purpose of this study is to find the problems of the capital chain in the process of diversification,and motivation of the listed problems.This study begins with definition,development,and status of the Internet enterprises diversification,and analyzes how diversification influences the capital chain of the Internet enterprises.Second,the study discusses the characteristics of the capital chain under diversification.Third,the study analyzes the status of the Internet enterprises under diversification,and discusses problems of their capital chain,and finds motivations of the problems.Finally,the study chooses LETV case to be more persuasive and valid,and puts forward some suggestions on problems of the capital chain in internet industry under diversification.The study result shows that(1)the financing channels of the Internet enterprises are more diversified,but there exists enterprises relying on debt financing;Large investment and expanded business spending bring pressure on the capital chain;Online payment accelerates the flowage of corporate funds;but the fierce market competition has an negative influence on the flow of capital.(2)The diversification model itself means a large amount of capital expenditure.Because of the Industry nature,the fierce market competition,and the special profit model,there are few studies on the problem of capital chain in internet industry,especially on the capital chain of the Internet enterprises under diversification.This paper hopes to discuss the capital chain problems in the process of diversified expansion of Internet companies,and put forward some suggestions to help enterprises balance the expansion and the capital chain.Contribution:Concerning the object of study,as Internet industry has just emerged for a few decades,there are not too much research on the capital chain management of diversifying expansion.The papar concludes the management of capital chain of Internet enterprises who develop diversified operations,giving innovativeness to this work.The disorder of LETV has raised huge attention among the public over the past months while few systematical research could be found.By exploring the strategy in financing,investment and diversifying function,the paper did the capital chain research creatively.In addiction to that,the paper also found out the key risk points inside the capital chain by analyzing equity structure,business nature and strategy target.Scarcity:There are still some aspects needed to be further discussed.Besides the LETV,some other not-listed subsidiary corporations are belonged to the LETV group but didn’t make public financial statements,which gives rare access to their capital chain management research.As a result,the paper only focused on the diversifying expansion and capital chain of LETV among the group.