Research On OPM Strategy Of GREE Electric Appliance Based On Business Model Transformation

With the rising prices of raw materials such as steel and the intensification of competition between industries,the scientific management of working capital is crucial for the development of enterprises.If the company relies solely on external borrowing,the interest expense is also a big expense,so the company is implementing the financial strategy of saving interest costs-the OPM strategy.Rely on for many years to build the unique procurement sales channels and scale advantages,has absolute power in the supply chain,so as far as possible to delay the payment time.In this way,the pressure to pay funds is alleviated,and sufficient funds are obtained,so that the efficiency of working capital management is maximized.As a leading enterprise in the home appliance manufacturing industry,GREE Electric Appliances is an original joint-stock sales company.And it adopted the delivery mechanism of payment first and goods later,so GREE can not only occupy the capital of upstream suppliers,but also receive a large amount of capital from downstream dealers in advance This enables GREE to obtain sufficient floating funds through the implementation of OPM strategy,and enterprises rarely need to resort to short-term loans and interest-bearing liabilities for financing.With the rapid development of the Internet and the younger consumer group,shopping online has become a habit,so major companies are actively transforming to the O2 O business model,in order to occupy a larger market share,with GREE HAIER,the main competitor of electrical appliances,established its own e-commerce platform early,and MIDEA Group is also actively cooperating with established channel providers,GREE Electric Appliances finally entered the ranks of e-commerce in 2014.GREE has realized the transformation of its business model.But business models and corporate strategies are correlated to a certain extent.The business model of the enterprise has changed,and the implementation effect of the financial strategy OPM strategy will definitely have an impact.Therefore,this paper studies the changes in the implementation effect of GREE Electric OPM strategy based on business model transformation,adopts the method of longitudinal comparison,and analyzes the impact of business model transformation on the implementation effect of OPM strategy based on the 10-year data before and after GREE Electric transformation.Through the analysis,it can be seen that the transformation of the business model has promoted the implementation of the enterprise’s OPM strategy as a whole,which has further increased the company’s liquidity,asset liquidity,profitability,and financial flexibility.There are advantages and disadvantages,so this article also points out through analysis that although the transformation of the business model has promoted the implementation of the OPM strategy,the result of the mentor is that the company relies too much on suppliers and distributors.The risk of debt repayment is high,and the turnover of accounts receivable of enterprises after the transformation is slower and the number is also increasing,which shows that the phenomenon of funds being occupied by other enterprises after the transformation is also more serious.Therefore,improve the innovation of products,thereby improving the competitiveness of products and strengthening the optimization of resource sharing with suppliers,in order to improve the implementation effect of the company’s OPM strategy and improve the efficiency of the company’s working capital management.