Value chain and value proposition
The business model “Business +real estate” is profitable for GOME, which can improve the ability of capital operation and industrial chain. GOME uses the commercial property development to provide itself with outlets façade to reduce the rent pressures.
The joint integrated value chain between suppliers and distributors has shown its benefits. In 2005, Gome had signed a large order worth up to 600 million RMB with Haier in sales. Both side promised to supply each other with “green channel” in supply of products and knots. Accordingly, this strategic cooperation agreement might be a new pattern of relations in the future of home appliance manufactures. Providing a good customer experience value is to form the core of customer loyalty and satisfaction. With the development of economy, customers will seek specific interests, value, satisfaction and experience.
The characteristics of GOME's internal value chain operating reflected in its operating profit expansion, the expansion of chain stores and crowding out loans. The company took advantage of value chain of division operating in different industries. Through complementary advantages and resource sharing between the industry, GOME can achieve expansion, win-win development and the synergy effect of 1+1>2.

Strategic suggestion for company performance
Firstly, expand sale networks and maintain low price benefits for consumers of market strategy. Continuously improve their channel terminal market influence, and on this basis, to improve the absolute volume of sales and purchase by raising its sales. Therefore, they can ask suppliers to increase the rebate and pay higher access charges.
Secondly, it is necessary to increase the contribution rate of hidden income. In GOME's capital operation, they have excessive reliance on suppliers who provide various miscellaneous. They need to avoid capital chain rupture. GOME is working to strengthen its cash flow and operational...