Research On The Profit Model Of GM Company Limited

After the reform and opening up,dairy products gradually entered the dining table of the Chinese people and became a major component of their daily diet.In the past decade,the per capita consumption of dairy products in China has increased by 36.3%,and dairy products are no longer limited to three meals a day.The focus of the people has shifted from drinking milk every day to drinking good milk every day.The quality level of dairy products in China has greatly improved,with its comprehensive production capacity firmly ranking third in the world and its global influence increasing day by day.If the dairy industry wants to develop well,it cannot do without the strong support of national policies,nor can it do without the expansion and upgrading of the consumer market.Although China has a large export volume of dairy products,the purchasing power of national dairy products is relatively low,and the average annual consumption of dairy products per person is only one-third of the world average.Therefore,the development potential and space of China’s dairy industry are still considerable.The Chinese government has formulated many guiding and supporting policies to ensure the stable and rapid development of the dairy industry.With the rapid development of the economy,the disposable income of residents has also increased.In addition,in conjunction with the relaxation of the three child policy,the layout of the dairy industry is becoming more scientific and reasonable,which will be conducive to the development of the Chinese dairy industry.This paper selects GM Co.,Ltd.as the research object,using case analysis,comparative analysis,and other research methods to analyze the current profit model of the enterprise and evaluate its financial effectiveness based on the current profit model.Then,the existing problems are identified and corresponding solutions are proposed.The article first introduces the research background,significance,content,and methods.Then,it analyzes the five elements of GM Co.,Ltd.’s profit model,namely profit point,profit source,profit leverage,profit barrier,and profit home.Based on the financial effects of the current profit model,targeted financial indicators are selected for horizontal and vertical comparative analysis.Then,the model is constructed using Analytic Hierarchy Process and Fuzzy Comprehensive Analysis,Conduct a comprehensive evaluation of the profit model of GM Co.,Ltd.Finally,based on the analysis and evaluation results,it is concluded that GM Co.,Ltd.has the following problems: adhering to the low-temperature fresh milk market,resulting in higher operating costs;Lack of room temperature products with memory points hinders market expansion;Inadequate investment in advertising expenses,insufficient promotion efforts,and a significant loss of potential customers;Slow recovery of accounts receivable and increased probability of bad debt losses;The breadth of the market and the depth of channels are insufficient,and sales are mainly limited to the East China market centered around Shanghai,clearly lagging behind competitors,and so on.Based on this,we propose strategies to explore new profit points,expand profit sources,optimize profit leverage,strengthen profit barriers,and stabilize profit makers.