Research On Midea’s Profit Model Under The Background Of Digital Transformation

In the era of digital economy,the rapid development of Internet,cloud computing and big data technology promotes enterprises to carry out digital transformation,upgrade their original business models,and expand new business and resources to break through their own development bottlenecks.It also brings new vitality and possibility for the development of modern society,However,at present,many enterprises in China do not have enough understanding of digital transformation,lack of experience on how to achieve lasting profits in the context of digital transformation,and how many small and medium-sized enterprises carry out digital transformation,How to build a profit model suitable for enterprises in the process of digital transformation to help enterprises cope with the changes in global development has become a problem that enterprises in all industries must face if they want to achieve healthy and long-term development,It is also the focus of common concern from all walks of life at present,Manufacturing industry is the economic lifeline of our country.in the face of changes in market,environment and other aspects,digital transformation has become the inevitable trend of the development of China’s manufacturing industry.Finding a suitable profit model is the key for enterprises to achieve long-term development.Therefore,this paper takes Midea Group as an example,analyzes the effect of his profit model through his financial performance,and summarizes the experience and shortcomings.it has important reference significance for Chinese manufacturing enterprises to build their own profit model in the process of digital transformation.Taking Midea as the research object,this paper comprehensively uses the methods of literature research,case analysis,combined with the course of Midea’s digital transformation and its business structure,and points out the change of Midea’s profit model after the digital transformation.This paper deeply analyzes Midea’s profit model under the background of digital transformation from the point of view of the five elements of profit model.through the analysis of Midea’s financial indicators of profitability,solvency,operating ability,development ability and profit quality from 2013 to 2021.Combined with the profit trend of Midea since the digital transformation and compared with the same industry,this paper analyzes the effect of Midea’s profit model under the digital transformation,and finds out the advantages of Midea’s profit model.At the same time,it also points out that there are some problems in its profit model,such as insufficient competitiveness of core products,insufficient digital utilization of sales links,and weak profitability of digital innovation business.Under the background of digital transformation,it is a long process to perfect the profit model of the enterprise itself.Enterprises should fully apply digital technology to the optimization and upgrading of products and services,speed up the layout of channels,constantly cultivate the ability of technological innovation,constantly improve the profit model in the process of digital transformation,enhance their own competitiveness and achieve sustainable development.