Research On The Improvement Of Profit Model Of Metro Group In D City

In the past 20 years,China’s urban rail transit construction has grown exponentially,both in terms of construction mileage and the number of cities.According to the 2020 annual report of the China Association of Metros,by the time of the thesis being written,244 metro lines have been opened and operated in 45 cities across the country,with a total operating mileage of nearly 8,000 kilometers.However,the municipal governments of these cities are under huge financial pressure.The construction investment is huge,but the metro ticket charges are low.Ticket sales and advertising revenue from stations and metro cars were not enough to cover operating losses,let alone recoup the metro building costs.Therefore,studying how to improve the profit model of metro enterprises is not only conducive to improving the industry’s predicament,but also to alleviating financial pressure.The paper takes D city metro group as the main research object,following the problemoriented and goal-oriented research ideas,comprehensively applying research methods including in-depth interview method,data analysis method and literature reviewing method and using profit model related theories to conduct profit model matrix analysis.Through a comparative analysis of the development status and profit model of the D city metro group,the paper points out four main problems faced by the D city metro group: first,the metro lines in D city have not been connected to form a network and the number of passengers is insufficient;Second,the traditional metro lightboxesand stations advertising and other forms of advertising are in a downward trend;Third,resources within metro stations and depots have not been fully exploited.Fourth,the resources that can be commercialized need to be tapped and the business model needs new attempts.In view of the above-mentioned problems and based on the operation status of D city metro group,through SWOT matrix analysis and profit model PM matrix analysis,the paper puts forward principle and overall process and specific measures in how to optimize the profit model of D city metro group.The first is to apply the TOD model to improve the land resources exploitation along the metro line;The second is to expand the channels and contents of resources commercialization;The third is to tap the resources that can be commercialized and try a diversified business model;The fourth is to sell tickets and cards with its own features;The fifth is to exploit and sell peripheral products;The sixth,establish a high-level rail transit investment and financing platform.To realize profit model improvement,the paper proposes measures in organizational structure optimization,staff restructuring and fund guarantee.Conclusions of the stesis can be extended to domestic urban rail transit companies for reference and also domestic metro enterprises as well as enterprises involved in public transport,tram hubs and other transit featuring public welfare,asset-heavy and big-passenger flow.Due to the particularity of metro enterprises,conclusions of the paper are limited to public welfare state-owned enterprises,and not applicable to enterprises that pursue maximum profits or have small assets.