Research on Profit Model of Sohu Company

In the age of internet economy, information is the most valuable resource. Portal site companies give priority to provide information and network services, so, portal companies play an important part in the internet business. With several exploitations, portal companies in our country have recognized the one-sided pursuit of market share and brand awareness should be forbidden and what more important is to find a suitable profit model of development, so as to maintain the core long-term competitiveness and profitability in the market competition. Sohu is the largest Chinese web portal and leader in profit model among its industry, so analyzing its profit model is of significant importance. Based on relevant theories, the paper dissects the profit model of Sohu, analyzes its profitability, profit quality, profit source, and profit leverage using financial data from 2011 to 2015 and raises strategies of exploring new profit source and strengthen profit barrier. Aus. Aca. Acc & Fin. Rev Vol  3(4),  Oct 2017, P 156-164 In the age of internet economy, information is the most valuable resource. Portal site companies give priority to provide information and network services, so, portal companies play an important part in the internet business. With several exploitations, portal companies in our country have recognized the one-sided pursuit of market share and brand awareness should be forbidden and what more important is to find a suitable profit model of development, so as to maintain the core long-term competitiveness and profitability in the market competition. Sohu is the largest Chinese web portal and leader in profit model among its industry, so analyzing its profit model is of significant importance. Based on relevant theories, the paper dissects the profit model of Sohu, analyzes its profitability, profit quality, profit source, and profit leverage using financial data from 2011 to 2015 and raises strategies of exploring new profit source and strengthen profit barrier. Aus. Aca. Acc & Fin. Rev Vol  3(4),  Oct 2017, P 156-164