The Research Of Company’s Accounts Receivable Management In Household Appliance Industry

Color TV industry can be one of the depth competition industries in thehousehold appliance industry, even with the economic field as compared to anyindustry. From Porter’s five forces model，we can analysis the current status ofcompetition in the appliance industry, they have the following characteristics: First,many competitors within the industry; Second, buyers (dealers) have strongbargaining power, but their bargaining power in the supply is weak; Third, there aremany potential entrants (OEM manufacturer); Fourth, more and more productsbecome to the substitute of them, such as computers, mobile phones and so on; Thefifth, there are many competitors in the industry. These signs identified that thehousehold appliances industry has become a highly competitive industry. In addition tothe ratio between rival products, quality and services, a variety of sales policy hasbecome an important means to attract buyers in the fierce market competition. Moreand more companies are using credit sales to expand their market share, in order toimprove their competitiveness.Company D, of this papers referring to, is responsible for all of its productcategories of TV products, include sales, production, supplies and integration business.Company D has more than fifty years of operating history, at different stages of herdevelopment, she adopted different credit sale policies and receivables managementaccording to the strategic direction of sales. After years of groping in the management,through the management and experience, the company formed a relatively stablecurrent accounts receivable management, accounts receivable bad debt rate graduallydecreased, accounts receivable aging is becoming more optimum, the turnoverefficiency of the company’s circulating fund was also rising.Based on the practice experiences of company D in accounts receivablemanagement, the paper analyzes specific practices, to refin a systematic accountsreceivable management model. And expect the extract credit and receivables mode itsummed up can guide a similar highly competitive business practices in the industry,to improve the efficiency of enterprise receivables management objectives, to promoteenterprise value maximization.