Research On Business Model Innovation Of Jiuda Salt Industry Under The Background Of Franchise System Reform

Under the background of the increasingly intensified international competition,the “Made in China 2025” issued by the State Council in 2015 has become the first ten-year action plan for China to implement the strategy of building a strong country.As a traditional industry in China's manufacturing industry,the salt industry has undergone a nationwide monopoly system for 2700 years.In a certain historical period,the salt monopoly system has played an active role in increasing government revenues,stabilizing salt prices,and scientifically supplementing iodine.However,as the country's comprehensive deepening reform,the salt monopoly system has fragmented the connection between companies and the market.“There are fixed points,fixed shipments,and fixed sales,” and production,transportation,and sales are subject to special controls.Salt production companies are “dancing with bonds” and have neither sales rights nor pricing rights and trademarks.Some key enterprises have suffered losses year after year,lack of funds,continuous reduction in their competitiveness,serious lack of development potential,and huge gaps compared with developed countries.As a leading mineral salt producer in China,Jiuda Salt Industry has suffered serious overcapacity,underemployment,and high production costs,and is in awkward situation.On May 5th,2016,China's "Salt Industry Reform Plan" was promulgated.It was to abolish the requirement that fixed-salt manufacturers can only sell to designated wholesale enterprises,allow production enterprises to enter circulation and sales,and independently determine the number of production and sales and establish Sales channels,and carry out trans-regional operations with their own brands.Salt industry companies ushered in a rare opportunity and great challenges.In the face of increasingly strong market competition,how to use the opportunity created by the government to break the ice of the monopoly system,integrate stock resources,implement effective innovation,and maintain the survival of the company,the company is becoming a bigger and stronger company,which is the key to be discussed and solved by the current salt industry.The status of Jiuda Salt Industry has a strong representation in the Chinese salt industry.This article reviews,interprets,and refines the business model at home and abroad,and uses this as a theoretical guide for the business model innovation of Jiuda Salt Industry.At the same time,it thoroughly analyzes the development status of China's salt industry and its existential dilemma,and deeply analyzes its long history,the current business model and characteristics of the salt industry,and elaborates on the opportunity and conditions for the business model innovation of Jiuda Salt Industry.Based on this,it proposes a business model innovation solution for Jiuda Salt Industry.Through the literature research,field surveys,expert consultations,system analysis and experience summaries and other methods,the material and the data applied in this article is reliable.This paper refers to the achievements and theories of domestic and foreign business model innovation research,and proposes the Jiuda Salt business model innovation plan,which has positive significance for solving the current long-term survival dilemma and improving the long-term salt industry competitiveness.At the same time,it has certain reference value for how similar salt companies can get out of difficulties,enhance market competitiveness,and promote the transformation and development of enterprises,and hopes to provide a new perspective and outlet for the transformation and upgrading of China's salt industry.