The Impact Of ICL’s Business Model On Firm Performance

Since the onset of the COVID-19 pandemic,Independent Medical Laboratories(ICL)have contributed enormously to COVID-19 testing,bringing the industry to the public eye.At the same time,ICL companies also showed good corporate performance during the epidemic,but under effective management and control,with the development of vaccines and drugs,the epidemic will eventually end,and whether the good performance of the company can last after the epidemic is over.Depends on the continued effectiveness of the business model of the enterprise.KINGMED DIAGNOSTICS,which focuses on inspection services,took the lead in innovating business models,responding to the relevant policies of "medical alliance" and "graded diagnosis and treatment" promulgated by the state,and cooperated with medical institutions at all levels in a cooperative and coconstruction model,and achieved good results.The "product + service" business model of DIAN DIAGNOSTICS has also achieved success,and has a market share second only to KINGMED DIAGNOSTICS in the inspection service industry.The business models of the two companies are different and show different corporate performance.So,as one of the influencing factors of corporate performance,how does the business model affect corporate performance?This article uses KINGMED DIAGNOSTICS and DIAN DIAGNOSTICS,the leading companies in the independent medical laboratory industry,as case companies to explore the impact of business models on corporate performance.Based on the business model definition of stakeholder-based transaction structure and the Wei-Zhu six-element business model model,this paper compares and analyzes the two elements of the business model: positioning,business system,profit model,key resource capabilities and cash flow structure.The characteristics of the business model and the constituent elements of the business model of each case enterprise,and then using traditional financial indicators as the performance evaluation method,from the perspective of business model elements,the business model ultimately affects the profitability,operation ability,solvency,Path to growth.The research shows that the differentiated business model affects the financial decision-making of the enterprise through various elements,and the financial decision in turn affects the cash flow structure of the business model.The four corporate performance indicators of debt capacity and growth capacity have a differentiated impact.