Profit Model and Financial Analysis of Internet Medical Care: Taking JD Health as an Example

Abstract

Purpose - Increasing health awareness and the rapid growth of Internet technology has aided the development of Internet medical treatment which can relieve the pressure on medical resources and improve the imbalance to some extent. Although the Internet medical industry is rapidly developing, many enterprises are non-profit making, despite growth in operating revenue. Therefore, exploring a profit model suitable for the development of Internet medical enterprises is crucial.
 Design/Methodology/Approach - Based on the theory of profit model elements and core competitiveness, we selected JD Health as the research object. By elaborating on the relationship between the profit model, financial analysis, and impact path of profit model components on financial data, we found that profitability problems exist in the model and proposed optimization suggestions.
 Findings - This study identified some problems in JD Health’s profit model: the overdependence of profit point on the pharmaceutical e-commerce business, the low stickiness of profit sources, and weak profit barriers. We proposed the following optimization suggestions: strengthen traditional businesses, improve and expand new businesses; optimize product quality and service to increase customer stickiness; continue to optimize profit leverage; and improve core competitiveness and strengthen profit barriers.
 Research Implications - This study provides new insights for studying the Internet medical industry and a theoretical reference for studying its profit model. Simultaneously, it can help peer companies find profit models that suit them and promote the steady development of the entire industry.