What are the profit models?

Profit model can be divided into spontaneous profit model and conscious profit model. The former is formed spontaneously, and enterprises lack a clear understanding of how to make profits and whether they can make profits in the future. Although the enterprise is profitable, its profit model is not clear, and its profit model is characterized by concealment, fuzziness and lack of flexibility.

The latter, that is, conscious profit model, is formed by enterprises consciously adjusting and designing profit model by summing up profit practice. It has the characteristics of clarity, pertinence, relative stability, environmental adaptability and flexibility.

In the initial stage of market competition and the immature stage of enterprise growth, the profit model of enterprises is mostly spontaneous. With the intensification of market competition and the continuous maturity of enterprises, enterprises begin to pay attention to the study of market competition and their own profit model. Even so, not all enterprises are lucky to find a profit model.

Profit analysis is mainly to improve the existing profit model through the analysis of profit model.