Financial Strategy Driven By Differentiated Value Chain Business Model

With the development of science and technology,the prosperity of economy promotes the arrival of information technology era.In order to adapt to the fierce competition in the context of the Internet era,all walks of life have joined the wave of enterprise reform and transformation.As the leader of household appliances industry,Midea Group experienced profit predicament in 2011,and realized that the transformation of business model was imminent.Therefore,it abandoned the original traditional manufacturer model,innovated differentiated value chain business model according to its own situation and social development trend,and successfully realized the transformation.Under the business model of differentiated value chain,Midea Group put forward"product leading,efficiency driven,global management" as the core,five development paths are adopted:dual-intelligence strategy,platform strategy,T+3 value chain management model,integration of industry and finance,and global layout.Promote enterprises from a single traditional household appliances enterprise to become the world’s leading consumer appliances,HVAC,robotics and industrial automation,intelligent supply chain(logistics)technology group transformation goals.Business model drives financial strategy,that is,"Business model drives financial strategy,and financial strategy promotes business model to achieve value goals".Therefore,the success of business model can not be achieved without the cooperation of financial strategy.At present,there are numerous studies on business model or financial strategy in China,but there are few studies on the relationship between them,and the existing research methods can not measure business model and financial strategy scientifically,but only based on literature analysis and theoretical deduction and induction.Therefore,this paper provides case samples for the follow-up related research on how to implement and evaluate the effect of the financial strategy driven by the differentiated value chain business model of Midea Group.The research ideas of this paper are as follows,Guided by business model and related theories of financial strategy,the data and financial data from 2011 to 2018 are selected.Firstly,this paper makes a concrete analysis of the business model of Midea Group Differentiated Value Chain,and then explores how to implement the financial strategy driven by the business model,that is,investment strategy,financing strategy,working capital strategy and dividend distribution strategy.Then,by using the index analysis method and comparing the growth level of the industry,this paper makes a comparative analysis of the financial performance of Midea Group in four aspects:solvency,profitability,operation ability and market value,evaluate the implementation effect of Midea Group driven by the business model of differentiated value chain.Finally,summarize the research conclusions and experience,and provide reference for the development of other enterprises.The conclusion of this paper is:Midea Group differentiated value chain business model effectively drives the implementation of financial strategy transformation.Investment strategy,financing strategy,working capital strategy and dividend distribution strategy are mutually driven and coordinated.Jointly promote effective implementation of differentiated value chain business model of Media Group,so as to realize the enterprise value promotion.