Analysis of Kwai’s Profit Model Based on the Five Elements Theory

International Education School, Hebei University of Economics and Business, Shijiazhuang, 050000, China

^* Corresponding author: zhouna@hueb.edu.cn

Abstract

In recent years, the short video industry has become popular worldwide due to its characteristics of popularization, personalization, and diversification. Among them, Kwai App has become the second largest short video company in the world with its huge number of users. Therefore, this article’s theme was to study the profit model of Kwai Technology Company by using the five elements theory. The research methods of this article mainly included literature review and case analysis. The results showed that the financial situation of Kwai is not optimistic, the operating costs are huge, the enterprise has suffered losses for years, and the growth rate of customer groups is also slowing. In the future, Kwai should try its best to reduce costs, increase profits, expand its user range and achieve better development. Through the analysis of Kwai’s profit model, this paper was conducive to Kwai’s understanding of its profit model status and risk warning, as well as investors’ understanding of the profit model of the short video industry, helping them make correct judgments on their own investment decisions.