Research On Profitability Improvement Of Xiaomi Corporation Based On Business Model Building Block

In recent years,with the strategic goals of China's "Internet +" and "Made in China 2025",the development of smart manufacturing will be a long-term strategic task for Chinese companies.The development of macro environment and new technology also provides opportunities for smart manufacturing.Along with the deepening of economic development,scientific and technological progress and supply-side reforms,new business models have emerged in the market.After the Taobao platform model reached a high point,the development was under the bottleneck.The sharing economy was sought after for a while,and then gradually forgotten.LeTV's eco-chain model also suffered a financial crisis after its listing.In the market competition environment,the business model reflects the way through which companies can make money.A good business model should be verified through profitability.Since its establishment in 2010,Xiaomi Corporation has actively carried out business model innovation,made mobile phones through the Internet,carried out technological innovation,marketing innovation,and explored innovation and entrepreneurship,and built the Xiaomi brand at home and abroad;in 2018,the profit model of Xiaomi has received much attention from the market in the process of listing.Xiaomi and LeTV were once competitors of the eco-chain model.Xiaomi was also questioned about its internet ability and sustainable profitability.In particular,the CSRC's 84 questions have not been answered yet.The focus of discussion is due to the business model of Xiaomi Corporation and its profitability.Based on the comprehensive use of Osterwalder business model canvas,this thesis adopts the financial analysis method to analyze the business model of the ecological chain enterprise.This thesis first focuses on the profit model,analyzes the source of income and cost structure,and finds that Xiaomi mainly has smart phones,IoT and consumer goods,Internet service business.Secondly,using the key indicators such as solvency and profitability to quantitatively analyze the profitability of Xiaomi,through the analysis of the profitability of each profit point in the profit model,it is found that the high-income and low-profit area is the smart phone business,the low-income and high-profit area is the Internet service business,and ROE is low.then analyze the influencing factors behind it.Finally,combined with the business model building block evaluation method,the Xiaomi's profit model was analyzed in an all-round way,and its advantages and disadvantages were obtained,as well as the predicament that affected the Xiaomi's high profit margin.This thesis further proposes countermeasures and suggestions for the problems and potential risks of the profit model.