Research On Performance Of Red Star Macalline’s Business Model Innovation

Nowadays,breakthroughs in digital technology helps the retail industry constantly expand into new areas and new forms of business are emerging.Under such a background,retail enterprises have carried out innovation on business models,realizing omni-channel integration,which has initially achieved good results and caught the attention of investors and scholars.Some scholars have studied the impact of business model innovation of e-commerce companies and department stores on their operating revenue,earnings per share,return on assets,return on investment and other aspects,and find that business model innovation helps improve financial performance.However,few have studied the impact of business model innovation on performance of home furniture retailers and relevant issues remain unknown.Therefore,this thesis takes Red Star Macalline as example,by analyzing the impacts of business model innovation on the company’s performance and giving suggestions for further deepening business model innovation to improve its performance,helping provide reference for other home furniture retailers to improve their performance through business model innovation.In this thesis,firstly,the concept of "business model innovation" is defined,Canvas business model and the mechanisms of business model innovation affecting companies’ financial performance are introduced,and resource-based theory,theory of value co-creation,theory of value chain and value net and theory of omni-channel retailing are considered as the theoretical basis.Secondly,the background of the home furniture retail industry’s business model innovation and Red Star Macalline are introduced.The development process of the company’s business model and the content of its newly business model are expounded.The innovations of the company’s business model are reflected in the innovation of key resource capacity,customer value pr oposition,sales channel and value net integration.The motivations of the company’s business model innovation are also analyzed.The mechanisms of the company’s business model innovation affecting performance are stated and the outcomes of that are analyzed.It turns out that the company’s business model innovation initially improves its non-financial performance and boosts the revenue growth.But the company’s financial performance and market performance are poor,which is reflected in the company’s poor profitability,solvency,operating efficiency,short-term and long-term reaction of capital market.This is mainly because there are some problems existing in the innovations of the company’s key resource and capacity,retail channel,customer value proposition and profit model.Finally,some suggestions are given for the company’s further deepening business model innovation to improve its performance.