Analysis Of Profitability Of Great Wall Motor Company From The Perspective Of Value Chain

In recent years,the surprise attack of the new crown pneumonia epidemic has disrupted my country’s market economic order.As one of the important pillar industries of the national economy,the automobile industry has also been greatly impacted.Enterprises want to continue to survive and achieve long-term development in such a complex economic environment.Improving corporate profitability is critical.The profitability of an enterprise runs through every link of the value chain and is a decisive factor affecting the future sustainable development of an enterprise.Since traditional profitability research is more limited to financial statements,there are many drawbacks.As a new financial management tool,value chain can help enterprise managers to effectively identify operational problems and make targeted improvements.As an outstanding private enterprise in my country,Great Wall Motor is representative in the industry.Therefore,research on the profitability of Great Wall Motors from the perspective of value chain has certain practical significance for enhancing the competitiveness of enterprises.The thesis takes Great Wall Motor as the main research object,and studies the profitability of Great Wall Motor Company through literature research,case study and comparative analysis.First,the research background and significance,research method and content of the paper are explained.And comb the domestic and foreign research review.Second,define the concept of value chain and profitability.It also summarizes the profitability analysis methods used in the paper.Thirdly,from the introduction of Great Wall Motor Company and the company’s sales status,the relevant general situation of the company is expounded.It also made a preliminary judgment on the profitability of Great Wall Motors and the status quo of the value chain,and had a clear understanding and grasp of the overall value activities of the company.At the same time,it expounds the necessity and feasibility of integrating the value chain into profitability research.Fourth,introduce value chain theory and build a brand-new profitability index analysis system.Based on the index system,the entropy method was used to analyze the comprehensive profitability of each link of the value chain of Great Wall Motors in the past five years,and to identify the profitability of each link of the value chain.Finally,based on the value chain perspective,the index analysis method is used to further analyze the profitability of the enterprise.At the same time,SAIC Motor,a benchmark enterprise in my country’s automobile manufacturing industry,and BYD,an excellent private automobile manufacturing enterprise,were selected for horizontal comparative analysis.Therefore,according to the analysis results,the problems existing in the profitability of the enterprise are found and corresponding improvement strategies are put forward.Through the analysis,it is found that the enterprise needs to be further improved in terms of R&D efficiency,cost control,profitability stability,accounts receivable management and dependence on upstream and downstream enterprises.In response to the above problems,the following improvement strategies are proposed,that is,precise investment to improve R&D efficiency,strengthen enterprise cost control,expand sales,strengthen accounts receivable management,and strengthen the management of enterprises and upstream and downstream enterprises,so as to improve the profitability of enterprises.