Research On CX Telecom’s Light Asset Business Model

For a long time,financial performance,profit model is an extremely important concept with the growth of enterprises.Peter F.Drucker once said that “Today’s competition among enterprises is not the competition between products and services,but the competition between business models”.This phenomenon is still reflected in the current complex enterprise competition environment.For many enterprises,to design or create a business model can not only help enterprises to change the original operation mode,but also help enterprises to form differentiated operation in the process of growth,and form valuable,heterogeneous and hard to imitate resources.With the transformation and upgrading of China’s economy,Io T,cloud computing and other information technologies are changing with each passing day,new modes and formats of the communication industry continue to emerge,traditional communication enterprises are facing fierce market competition,and profit space is constantly compressed.In the current era,asset light business model is an important way for communication enterprises to achieve transformation and upgrading as well as value creation.However,many communication enterprises fail to fully understand the characteristics and advantages of asset light business model when they implement it,resulting in the implementation effect is not as expected,and even suffer significant financial losses.Therefore,the purpose of this paper is to analyze the implementation path and financial characteristics of the light asset business model,and to find new profit points generated by the light asset transformation,so as to help the future development and transformation of China’s communication industry.First of all,this paper reviews the relevant literature such as light asset business model,value chain theory and enterprise value evaluation theory,and constructs the research framework of light asset busines model of “value proposition → value creation → value transmission”.Secondly,this paper analyzes and summarizes the implementation background,components and financial performance of the case company’s light asset business model,and selects the financial data from 2013 to 2018 of the case company,and compares the implementation effect of the case company and its main competitor,Eastone Century Technology’s business model.Finally,this paper summarizes the implementation ofthe CX Telecom’s light asset business model,and draws the attention and reference for other enterprises in the industry,as well as the risks of CX Telecom’s business model,and puts forward the relevant enlightenment and suggestions for the optimization of the communication industry’s light asset business model:Positioning light assets that can be converted into profits,using light asset financial leverage to leverage high quality resources of industrial chain,strengthen cash flow planning and management,layout application field in advance to create competitive advantage,construction of advanced technical personnel training system.