Who to trade with, including external stakeholders and internal stakeholders

How to trade, such as leasing, authorization, information processing, etc.

How to allocate value, including orientation, qualitative, quantitative and timing

Business Activities

Manage activities

Effect

efficiency

exchange

cooperate

The residual value of a party = the transaction value of a party (price × sales volume) − the transaction cost of a party − the currency cost of a party

Business transaction relationship

Governance of transaction relations

Market transactions

Bureau transactions

Mixed transactions

In the definition of positioning, keywords are neither stakeholders nor demands, but ways of demand satisfaction

Positioning determines what characteristics of products and services should be provided by the enterprise to realize customer value

What kind of way does a company choose to trade with a certain type of stakeholder? The influencing factors are transaction value and transaction cost.

Transaction Cost

Three perspectives of business system construction

Such a business system for internal and external stakeholders to cooperate with each other around the enterprise positioning will form a value network. This value network defines the role played by customers, suppliers and other partners in the process of gaining value through their business models.

Different cutting will bring about different business model innovation

Mutual search process before transaction: customers look for products and services

Value perception process in transactions: Customers evaluate the value of products and services

Post-transaction execution process: Customers purchase and use products and services

Exclusion: Exclude value points that customers take for granted

Reduce: Reduce value points that customers think are not important

Add: Increase the value points that customers consider important

Creation: Create new value points

Franchise Model》Equity Investment Model》Bottler Franchise Model

Definition: A competitive space from the perspective of the enterprise, focusing on three dimensions: customers, competitors and the company itself

Core task: Find the best competitive positioning, including market segments, resource capabilities and competitive advantages

Classic Theory: Trout's positioning theory, blue ocean strategy, Porter's value chain analysis, etc.

Definition: A competitive space from the perspective of the business ecosystem, composed of the freedom of enterprises to choose different business models

Core questions: In the existing ecosystem, whether the transaction method between stakeholders is optimal, whether there is potential value not being tapped, and whether new stakeholders can be introduced

Case: Different business models such as direct sales, franchise and brand output of chain hotels

Definition: A competitive space from the perspective of business ecological groups (clusters), composed of the freedom of enterprises to choose different symbionts.

Core question: Does the symbiont in which the company is located need to adjust the logic of value creation, and whether new symbionts can be created

Case: The difference between Internet e-commerce and traditional retail, and Uber's innovation in travel symbionts

Competition in the mobile phone industry has changed from competition among traditional mobile phone manufacturers to competition from Apple to competition from innovation through ecosystems to competition from Xiaomi through the Internet model.

Qualcomm's Challenges and Innovation in Three Spaces

Strategic Space: This is tree thinking. You treat yourself as a tree and think about the relationship between upward growth, that is, the relationship between the earth and the sky, and also the relationship between the company and customers. This is the core relationship between corporate development and it is also a general focus of most companies.

Business Model Space: This is the Woods Thinking. You are no longer limited to treating yourself as a tree, but thinking about how to cooperate with the surrounding tree roots to form a natural growth relationship, that is, to satisfy the relationship between customers. This determines the resource status you have to meet customer needs, and only a few companies have ecological thinking and platform capabilities.

Symbiosis Space: This is forest thinking. Your vision is no longer limited to the surrounding groves, but is enlarged to the entire industry, that is, the entire forest, to think about the value positioning of you and the surrounding groves in this big ecology. This is even beyond the original industry, looking for answers from customer satisfaction rather than the current situation of the industry, and your vision boundaries are unintentionally expanded.

Definition: Starting from existing stakeholders, discover more stakeholders and broaden the space for value discovery

Case: Zenefits obtains commissions by providing HR cloud services to businesses while serving as an insurance broker

Definition: Discover and utilize sleepy resource capabilities in business ecosystems

Case: Medifast converts customers into health coaches and expands business through fission-based communication

Definition: Design roles and transaction structures of different stakeholders to improve the efficiency of the business ecosystem

Case: Dell reduces inventory costs and improves cash flow efficiency through direct sales model

Definition: Use financial tools and other accelerators to break the ceiling of value space and efficiency bottlenecks

Case: CapitaLand Group quickly replicates and expands its commercial real estate model through PE REITs model

Triple-mirror scan: Identify stakeholders, resources and needs

Evaluation sorting: Building role-demand assessment matrix and role-resource assessment matrix

Priority Match: Determine priority based on the degree of matching resources and requirements

Business system design: Design specific business systems according to priority

Filter and evaluation: filter and evaluate the designed business system and select the optimal solution

Utilizing revolutionary technologies: such as the subversion of traditional energy vehicle symbionts by electric vehicles

Resetting the logic of value creation: such as the reconnection of existing assets and market demand by sharing economy platforms

Trend force changes: such as population structure, social culture, and policy changes to give birth to new symbiosis

Prices of products and services

Determination of the source of corporate profit

What profitable means does a company obtain income

Fixed Income:

Remaining income:

Share income:

Fixed contributions:

Variable contributions:

Definition: The degree to which stakeholders are willing to invest in a transaction

Factors influencing:

Case: The lease contract system, wage contract system and share contract system in agricultural production. The farmers' investment intentions are different under different contract methods.

Investment in resource capacity: The more resource capacity is invested, the higher the transaction value

Trading structure: A reasonable trading structure can improve transaction value

Stakeholder behavior: Stakeholder behavior directly affects transaction value

Search Cost: The cost of finding a transaction object

Negotiation Cost: The cost of negotiating the terms of the transaction

Execution cost: The cost during the execution of the transaction.

Subjective aspect:

Objective aspect:

In agricultural production, under the same natural conditions, farmers are more capable of taking measures to reduce the risk of production reduction than enterprises, but if farmers can only get fixed wages, they do not need to take measures to reduce the risk of production reduction. In order to promote farmers' efforts, the additional supervision costs of enterprises are often not worth the effort. This is why in the planting and breeding process, agricultural enterprises rarely use fixed wages, but instead use surplus or share transactions.

If the opportunity cost of resource capabilities a certain stakeholder has is greater, then even if a fixed contribution is provided, the stakeholder may compensate for this opportunity cost in the form of residual income. Which model to adopt depends on the opportunity cost (will to default) and supervision cost (difficulty to correct default). On the contrary, if a certain stakeholder has a weak market power and a small opportunity cost, then even if it provides variable contributions, the stakeholder may only receive fixed income.

If the contribution proportion of resource capacity is high, the stakeholder will either require a high fixed income or a residual income

Since fixed income is generally paid in the current period, while remaining income will be paid out on a deferred basis, stakeholders with tight cash flow may want to convert the remaining income into fixed income. On the contrary, stakeholders with abundant cash flow are willing to convert payments of one-time fixed income into fixed bonus shares or share shares (all manifestations of residual income) in cooperation.

Due to the uncertainty of future outputs that can be brought about by resource capabilities, and there is information asymmetry between cooperatives and stakeholders, stakeholders may be more willing to choose a residual return method with higher returns but greater risks to gamble, thereby reducing transaction uncertainty.

Definition: Only by paying this fee can you be eligible or allowed to conduct business activities, such as compulsory vehicle traffic insurance

Case: The entry fee of the mall, the merchant needs to pay a certain fee to obtain the qualification to operate in the mall.

Definition: billed according to the number of uses, such as tolls, bridge fees, etc.

Case: Tolls on highways, vehicles need to pay a certain fee every time they pass through the toll station.

Definition: billed according to the time period used, such as parking fees

Case: Parking fee in parking lots. The longer the vehicle is parked, the higher the fee you need to pay.

Definition: Charges based on consumption volume or consumption value, such as the refueling fee of a car

Case: Gas station refueling fees are charged according to the amount of refueling

Definition: Pricing based on the value of the product, such as the franchise fee charged based on the income ratio

Case: EMC (Energy Management Contract) is a sharing fee based on the energy consumption saving value that can be created for corporate customers.

If Party A and Party B have strong resource capabilities (expressed by "high", then it is a strong alliance, and initial transaction allocation tends to choose to share the shares. Party A and Party B work together, invest together, and share income

If one party has strong resource capabilities and the other party does not have a competitive advantage (expressed by "low"), then the initial transaction allocation tends to allocate fixed returns to the latter, and the former retains the remaining returns and bears most of the investment and risks.

If Party A and Party B have neither competitive advantages, then the cooperation between the two parties is relatively fragile and they tend to choose not to cooperate.

Different transaction configurations themselves will result in different transaction costs. If the transaction cost of the preliminary transaction configuration is huge, the final profit model will change; and if the preliminary transaction configuration is proven to be low in transaction costs, the profit model will remain unchanged

Under the same risk tolerance, the business model of profit model designed according to the above principles is generally relatively efficient.

If a stakeholder can bring other high-value stakeholders, then not only can the stakeholder be charged, but the compensation will be given.

The more opportunity cost a stakeholder has to pay, the harder it is to reach a deal, or the more compensation he will be given

Is there an unused value to trade with this stakeholder? In other words, can the transaction value of this stakeholder be exchanged for the lower transaction costs?

Zhang Yimou's "Impression" series of landscape stage performances has weaved an ecological value network by using local farmers, fishermen and girls as actors, as well as tourists as audiences. The transaction value is great, but the additional cost of each participant is very low.

When designing a profit model, you should not only consider the company itself, but also consider whether there is a possibility of transactions among corporate stakeholders, and whether the transactions between them have become more valuable, lower cost or less risk due to the existence of the focus company.

Sichuan Airlines' free pick-up and drop-off service has built a win-win ecological value network for all parties through cooperation with travel agencies and drivers. Travel agencies purchase vehicles in bulk and resell them to drivers. Drivers earn income by providing pick-up and drop-off services. Airlines improve customer experience by providing free pick-up and drop-off services, attracting more passengers to choose Sichuan Airlines.

The rents in the new business districts are generally relatively low during the cultivation stage. With the increase in advertising investment and the increase in brand influence, the real estate developers and chambers of state gradually increase rents in a step-by-step manner. At this time, although the rent seems to be a fixed income, it is actually a fixed income of change.

A chain retail enterprise agreed with the merchant in the store to withdraw a certain proportion of commission after the merchant meets the performance requirements; If the merchant does not meet the performance requirements, the chain retail enterprise will charge a fixed fee. This is what is called guaranteed share

A shopping mall generally has three profit models: fixed, surplus and divided into three types, which correspond to fixed rental counters, self-operated sales and cooperative sales counters.

Some franchised franchise stores adopt a model of fixed franchise fees plus service fees based on turnover, which is the superposition of different profit models.

There may be multiple profit models in the same industry, and different profit models have different requirements for enterprise resource capacity allocation and risk tolerance. Competition in profit model is often decisive in the changes in the market structure, and its role is far greater than competition at the business management strategy level.

When Sony entered the game market, facing Nintendo's strong profit model, Sony attracted a large number of third-party game developers by selling game consoles at a loss and collecting premiums, and finally successfully counterattacked. Sony's profit model has successfully incorporated third-party game developers and game console companies into the game ecosystem, expanding the boundaries of the ecosystem and realizing the value of their respective value.

The characteristics and attributes controlled by the enterprise can improve business results and efficiency.

Including financial resources, physical resources, human resources, information, intangible resources, customer relationships, corporate networks, and strategic real estate.

Resources that can be split and reconfigured in the transaction structure.

Resources that can improve transaction efficiency, increase transaction value, reduce transaction costs and reduce transaction risks.

The internal characteristics and attributes of the enterprise's ability to collaborate and utilize other resources are the functions of a series of activities.

Including organizational ability, material ability, trading ability, and knowledge ability.

The ability to split and participate in transactions for reconfiguration in transaction structure.

Ability to improve transaction efficiency, increase transaction value, reduce transaction costs and reduce transaction risks.

Different business models require different resources and capabilities.

Value: Whether resource capabilities can respond to environmental threats and opportunities

Rarity: Is resource capacity scarce

Inimitability: Is resource capabilities difficult to imitate by competitors

Organization: Whether an enterprise can effectively organize resource capabilities to gain competitive advantages

Financial resources: monetary resources, financial assets, etc.

Physical resources: technology, equipment, geographical location, etc.

Human Resources: Employee experience, professional skills, etc.

Information resources: Market information, professional knowledge, etc.

Intangible resources: brand, patent, goodwill, etc.

Customer relationship: customer reputation, interactive ability, etc.

Company Network: Corporate Relations Network

Strategic Real Estate: Cost Advantages of Entering New Markets

Organizational competence: The ability to undertake specific business activities

Material capacity: raw material supply, production and manufacturing, etc.

Trading capabilities: order processing, inventory management, etc.

Knowledge ability: product design, brand management, etc.

Resource capability-oriented: formulate strategies based on enterprise resource capability status

Environmental opportunity adaptation type: seize market opportunities and quickly obtain resource capabilities

Target-driven concept: oriented towards the corporate vision, combining internal accumulation and external acquisition

Resource-capable oriented enterprises: tend to accumulate resource capabilities internally.

Environmental external opportunity adaptive enterprises: tend to obtain resource capabilities from the outside.

Target-driven enterprise: internal accumulation and external acquisition at the same time.

Split and reorganization method:

Through systematic analysis and evaluation, the matching of all key resource capabilities can be obtained.

Trade-off principle: When the transaction risk is controllable, maximize the difference (value space) between transaction value and transaction cost and maximize the enterprise value.

The name of the 7-11 convenience store appeared in 1946. Among the nearly 19,000 7-11 stores in the Japanese market, there are only more than 500 direct stores, and most of the rest are franchised by scattered couple stores integrated with 7-11.

The net profit margin is as high as 20.5%, and the inventory turnover days are only 10 days, making the efficiency comparable to Alibaba.

Key resource capabilities

Value Chain Integration

The main method of sharing is to share 57% of the gross profit to the store. After 5 years of operation, the store can also increase its share by 1% to 3% based on its performance.

Expand transaction value

Reduce transaction costs

Reduce transaction risks

Changxiang.com B2B travel advance model vs Treasure House SaaS no advance model

Apple's light asset design: outsourcing manufacturing Authorization channel → zero interest-bearing liabilities

Shuanghui Heavy Asset Breeding: Self-built pig farm → High cash flow pressure

Contract energy management: advance funding, long-term share

Free value-added: lose first and then make profits, rely on subsequent cash flow

Fixed income based on secured mortgage

Remaining/sharing income based on investment value

High loss during the construction period → General partnership of development company tax loss transfer

Operating Company Limited Partnership Government Investment Disney Management Rights

10-year lease repurchase realizes investor exit

Asset/Resource/Capacity Leverage: Light Asset Integration

Liability leverage: low inventory, low receivable, low interest-bearing liabilities

Value leverage: high capital return, rapid value realization

Cache shop takeout high subsidies

Self-operated heavy assets, rapid scale expansion

Huge operating cash outflow (store opening, subsidy, marketing)

Multiple rounds of financing, listing blood transfusion

Price-to-sales valuation vs profit sustainability

Reevaluation of user scale and data value

Symbiosis: Focus Enterprise All internal and external stakeholder roles Metalogical of value creation of business activities

Business ecosystem: Examples of symbionts, manifested as transactional relationships between real subjects

Focus business model (intest solid coil)

Example of symbiotic (middle dotted coil)

Business Ecological Group (Cluster) (Extraordinary Dotted Coil)

Boundaries depend on innovation vision, transaction value, transaction cost, transaction risk

From "customer's customer" to "supplier's supplier" and even the third level stakeholders

Vertical value chain Re-cut and reorganization of horizontal business chains

From Enterprise-Customer Zerosum → Maximize Total Residue of Symbiosis

Three paths: increase the total transaction value, reduce transaction costs, and reduce monetary costs

Introduce new entities to leverage their key resource capabilities (e.g. government, agricultural brokers)

From scale profit → transaction value, transaction cost, transaction risk unified optimization

Resources (input) | Capacity (processing) | Output (attribution)

Transaction value increases, transaction costs decrease, transaction risks decrease

Agriculture: Enterprise seed supply and fertilizer supply Farmer planting Enterprise repurchase → Scale and professional

Farmers → Agricultural investment → Planting → Acquisition → Processing → Distribution → Consumers

Traditional serial (A symbiont): independent transactions in each link

Trader control variety (B symbiont): Trader directly harvests seeds and commissioned planting

Retailer-led (C symbiont): Retailer direct control seeds commissioned logistics finance

Absolute control (self-operated)

Relative control (patent authorization, technical standards)

No control (complete market)

Absolute hard control before 2011 → Post-2011 strategic investment, soft control of traffic entrance (JD.com, Didi, Dianping)

Able to complete value creation without external force-realization of closed loop

New businesses, new roles, and new capital continue to influx

Early stage: Business-led construction

Maturity stage: Weak absolute control and amplify the overall value of the ecosystem

Xiaomi: Users/Brands/Supply Chain/Traffic

Eco-chain enterprise: Startup hardware team

Non-controlled investment Incubation accelerates = "Symbiosis but not consolidation"

Business income: Xiaomi channel sales share

Investment income: equity value-added

Synergistic effect: enrich the IoT ecosystem and acquire customers at low cost

Heavy asset path dependency

Lack of Internet traffic entrance and ecological operation genes

The difference in value evaluation between different subjects → Value-added through transactions

Opportunity cost: The "suboptimal use value" of the same resource to subjects A and B is different

Choice Income / Choice Cost / Choice Income = Choice Income - Choice Cost

Resource capability and stakeholder pairing table

Case of China-Africa Photovoltaic Fund

Differences in resource endowment

Differences in constraints (such as Alibaba's microfinance risk control advantages)

Differences in trading opportunities collection (software developers choose large platforms)

Direct sales: one-time revenue follow-up maintenance

Fixed-year leasing: Reduce user initial investment and long-term service income

EMC contract energy management: energy saving sharing, high returns and high risks

Resource Capacity | Business Activities | Management Activities | Rights Boundary | Time

Partnership: Establish a joint venture with the fund to share taxes/subsidies/depreciation

Sublease: Fund main leasing → Sublease terminal customer, SolarCity collects the difference

Sold Rent Rebate: One-time Buyout of Funds → Rebate SolarCity → Secondary Sub-Lease

Directional (object), qualitative (attribute), quantitative (quantity), timing (time), pricing (price)

Static cutting: components, relationships, value to others

Dynamic cutting: potential ↔ manifestation, stock ↔ traffic

Two-stage transaction: ① Sign up for low-priced bands and promote them → ② After sales reach 75,000 copies, joint venture with a large record company at 50:50

Risk allocation in stages, potential value and visible value pricing in stages

Superposition, companion, complementary, multiplier, exponent

Reduction: Only transaction core attributes (Apple software integration)

Extension: Multi-point locking customers (iPhone iTunes iCloud)

Remaining benefits should be allocated to the entities with the greatest impact on output and the highest opportunity cost

Famous teacher Lecturer

Transaction roles, value creation links, and value conversion levels increase

The logic of value acquisition changes accordingly

Example: Early e-commerce → Alibaba (platform payment), JD.com (seller platform logistics)

Decreased incremental value space

Each value point is filled with existing roles

The ecosystem is becoming stable and difficult to shake

Improve efficiency within the boundary

Reconfiguration of value links (example: Cainiao Logistics and SF Express are sellers)

Break through the original boundary and enter a new ecosystem

New battlefields such as catering, travel, cloud, and big data

Market Transaction ↔ Non-market Transaction Swap

Role ownership and positioning

Example: Miniso (design, retail), HaiLan Home (supplier design)

Add new roles to improve transaction efficiency

Example: Alipay solves the initial credit loss of e-commerce

Redesign of cost, profit, revenue and cash flow structure

Example: Pinduoduo Group Purchase Social Alternative Search

Transactions on undeveloped resources or cross-ecological grafting

Example: E-commerce data empowers traditional enterprises

Consumption concept and behavior iteration

Enterprises need to reposition customer value

Internet, big data, and AI reshape the industrial chain

Change the boundaries and operating conditions of the enterprise

Diverse financial instruments and evaluation criteria

Opportunities for cash flow structure reconstruction

Cost-leading, differentiated, and focus are difficult to sustain

Business models must be restructured to break out of the diminishing return on scale trap

IBM

Unrelated diversified operations are not an improvement in transaction structure, but an overflow of resource capabilities. They are reconstructing new business forms in new businesses and entering new industries to return to the early stage of scale returns.

However, the examples of unrelated diversified operations worldwide are notorious.

Intel invests in thousands of companies to find new growth points

Seeking to minimize transaction costs is the driving force behind the company's choice of positioning

Transaction costs consist of three parts: search cost, bargaining cost and execution cost. Good positioning can reduce one or several transaction costs.

Example: General Electric from manufacturing → “Product System Design Financing Maintenance” overall service

Example: 51 Credit card from billing tool → financial ecology (credit card promotion → loan → risk control platform)

Example: Zhubajie.com has no commission →Intellectual property/financial taxation/financial value-added services monetization

Example: Google Search Ads → Alphabet Incubation Platform (X Labs, Verily, Nest, etc.)

Example: Miniso franchisees "heavy asset pre-emptive operation and light asset operation" P2B loan supplement

R&D outsourcing, pay according to results

Example: Suwei Pharmaceutical R&D outsourced to Kuntai; Procter & Gamble’s open innovation C D platform

Sell ​​assets, REITs, manage outputs

Example: Marriott REITs franchise model

New revenue outside of main business

Example: Hertz Car Rental’s “new car rental, manufacturer repurchase, advertising sharing” multiple profits

Farmers are also lessors, workers, shareholders and insured persons

Example: "Five Golden Flowers" model in Sansheng Flower Township

Cut rigid links to the outside, retaining core flexibility control

Integrated integration of information flow, capital flow and service flow

Corporate Essence Knowledge

Value concept

Management and control concept

Business Ecology Concept

Path dependency

Break the convention

From familiar to stranger

90% at home, 7% in communities, 3% in institutions

Volunteers of "little elderly" under 65 years old ↔ Senior elderly people over 70 years old

Services: chat, housework, medical care

Incentive: Time points for physical examination/tourism/red envelopes, non-cash

Positioning: Home-based elderly care alternative institutions

Business system: Community service station Volunteer network Government/public welfare funds

Profit model: Public welfare donations, government subsidies, low-value-added services

Cash flow: advance volunteer points cost, and later brand and scale leverage resources

Volunteers' long-term motivation, standardized service quality, and sustainable funding

Focused

Bilateral/multilateral platform

Hard integration

Soft integration

One-sided platform

Bilateral platform: The main stakeholders are two parties (such as credit card companies).

Multilateral platform: There are more stakeholder types (such as mobile platforms).

Positive feedback among different types of stakeholders: the more suppliers, the more consumers; and vice versa.

Positive feedback within similar stakeholders: the more users, the more attractive new users are.

The platform needs to aggregate enough stakeholder groups, so openness and diversity are important characteristics.

"Admission ticket" standards need to be set to maintain the attractiveness of the platform.

The logic of value creation is nonlinear and requires the reduction of transaction costs through "connection" and "aggregation".

To end consumers: provide massive products and one-stop services.

For merchants: reduce search costs, bargaining costs and execution costs.

For the platform: Reduce transaction risks and increase transaction value.

Transaction value

Transaction Cost

Trading risk

The importance of initial user scale

Source of initial user scale

Definition of Economy of Scope

The importance of economies of scope

Realization of economies of scope

Diversity of profit models

The key to profit model

Cut business activities and resources into independent business entities.

Example: The business activities of home appliance stores are divided into sales, distribution, services, etc.

The reorganized transaction interface is relatively standardized, which facilitates transactions between platform companies and business entities.

The unilateral platform has stronger control over the business entity and can reduce transaction risks.

The income of the business entity is linked to output.

Ensure that the profits of the business entity exceed the opportunity cost.

The difference between unilateral platforms and organizational forms such as business unit system and chain stores.

Unilateral platforms pay more attention to the cutting and restructuring of business activities and resources.

Suitable for knowledge-intensive enterprises, agricultural planting, breeding and other small professional organizations.

Suitable for business activities and resource links in any industry.

Focused Model: Savi LDK focuses on silicon ingots and slices.

Hard vertical integration: Suntech Power intervenes in multiple links to improve profit margins.

Soft integration: BP Solar organizes global advantageous resources to build a low-cost, stable quality and efficient marketing component manufacturing service system.

Focus: Vestas focuses on the research and development of the whole machine and the production of some parts.

Hard vertical integration: Suzlon controls multiple components links, and the investment scale and risks have increased dramatically.

Soft integration: Goldwind Technology focuses on the research and development of whole machines, provides parts through the supply chain, and has high operational efficiency.

The industrial value chain links must be relatively independent to have the possibility of decomposition.

Ensure the possibility of vertical integration and integrated collaborative business models.

Adaptability and compatibility issues must be solved between the industrial chain links.

The output content, quality and rhythm of multiple partners must be consistent.

The essence of soft integration is industrial value chain integration.

Related to the flow of resources between different regions and different enterprises.

Strong supply chain management and logistics integration capabilities are required.

background

Business model

value

Focus companies have fewer platforms to build, and most transaction stakeholders come from outside.

Business-centric activities are independently measured by economic responsibilities, and focus enterprises provide resource capabilities platforms for business sharing, economies of scale, and complementary business.

Instead of controlling ownership, a reasonable transaction structure is designed to enhance control over both ends of the industrial chain and horizontal enterprises.

The platform is responsible for providing infrastructure resource capabilities, such as brand, financial support, business information systems, etc.

The independent business entity is responsible for specific business activities, such as product design, sales, etc.

Handu Yishe chose a one-sided platform business model in order to achieve rapid expansion and multi-brand operation.

The value of this model lies in:

insufficient

How to avoid