Gome’s Retail OPM Strategy Research Based On Business Model Transformation

At present,most companies use the OPM strategy to solve the problem of insufficient capital flow and low liquidity turnover.It is understood that Other People’s Money is a simple name for "OPM",which means "using other people’s money." And if the company uses a strategy of using other people’s money to achieve its own business objectives in the business process,then this strategy is called the OPM strategy.It refers to the company’s unique channel relationship and large scale advantage for many years of operation,delaying the payment of relevant payment dates to suppliers,not only can accelerate the turnover of liquid assets,but also obtain a large amount of interest-free funds,so that the value of the company can be maximized.A new type of working capital management strategy.Under the successful application of the OPM strategy,the company can maintain and enhance its own sales channel value,the business scope of the business is gradually expanded,and the bargaining power of the enterprise and upstream suppliers is improved,and the cost-free period is achieved by delaying the payment term of the accounts payable.On the basis of the purpose of paying the relevant funds to the supplier,the company will continue to expand its business scale to further maintain and enhance its unique sales channel value,improve the liquidity and sufficiency of the company’s funds,and realize the business process.Funding requirements.However,in recent years,China’s retail industry is facing a crisis of rising rents and the rise of the e-commerce industry.In order to adapt to the development of the times,the retail industry has also accelerated the exploration of the transformation direction.Gome Retail also embarked on the road of business model transformation with omni-channel operations combined with online and offline.When the surroundingenvironment changes,the implementation effect of the company’s OPM working capital management strategy will also change accordingly.Therefore,how to ensure that the OPM strategy of Gome Retail can successfully maintain the stability of working capital at all stages of its development has certain practical significance.This paper summarizes the research results of the existing literature,summarizes and expands the research results of the existing literature,summarizes the implementation of Gome retail business model transformation and OPM strategy implementation,and then implements the implementation effect of OPM strategy before and after the transformation of Gome retail in 2014.Longitudinal comparative analysis shows that the cash turnover period has been increasing since the transformation of the company,that is,the implementation effect of the OPM strategy is declining,and the implementation of the OPM strategy has improved the profitability and financial flexibility of Gome retail to some extent.But the effect is not obvious.Finally,it summarizes the problems in the implementation of Gome’s retail OPM strategy based on business model transformation,and puts forward suggestions for improving the OPM strategy in light of the problems faced in the implementation of OPM strategy.In order to consolidate and enhance the effectiveness of OPM strategy implementation,control and reduce the risks faced in the implementation of OPM strategy.