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Research on the Establishment and Development of the Cooperative Relationship between OEM and OBM

Author: WangYaNan
Tutor: QuanXiJian
School: Ocean University of China
Course: Business management
Keywords: OEM OBM Cooperative relationship
CLC: F273.2
Type: Master's thesis
Year: 2010
Downloads: 92
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Abstract

With economic globalization and international division of labor become more refined, the abundant labor force resources and low manufacturing cost cause the achievements of the title——China’s "world factory", while many of manufacturing enterprises are based on the cooperation model——OEM when establishing a corporation relationship with the licensors around the world. Based on the scheme of agreement, outsourcing and OEM is considered as a market trading relationship. And the process of OEM involves two parties:Brand providers and OEM business. The brand provides brand, marketing channels, the core technology and marketing resources; according to the requirements of the brand, foundry provider provides products or components. Foundry model is a common mode of cross-border co-operation, but the research and literature at home and abroad, mostly make their’ study on the development strategy of the licensors in detail from the view of the global value chain and business process outsourcing or other point. However, the same research on the pure-play foundries in the bottom of the foundry industry chain is few. Throughout China’s relevant research on foundry enterprises, they are mainly about foundry business status and business transformation research, small and medium OEM corporate finance studies, foundry business’competitiveness and growth research. Although our studies in the foundry business issues achieve a certain breakthrough and the studies involve a wide range of issues related to foundry business, but in general terms, the study about the establishing and how to develop the relationship between the foundry business and brand building business is clearly insufficient.Based on the increase of the cooperative experience with the brand, the overall capacity and management philosophy of the OEM enterprises get a lot of promotion. So the author makes a research from a new perspective:reviews the development process of the foundry enterprise in our country, discusses the cooperation model between the foundry business and the brand provider, researches the considered elements when the brand choose the foundry business, as well as the path to enhance the cooperation relationship between the two parties. Through visiting and investigating many types of domestic foundry businesses, as well as the studies on the development status of enterprises in the Pearl River Delta, the author proposes the new ideas about establishing long-term cooperative relationship between the brands and foundry businesses.In this paper, based on the reading and analyzing lots of documents, making dialectical materialism and historical materialism of Marxism as a guide, based on Marx’s economic theory, drawing on modern Western economic theory and China’s actual conditions, analyzing the relations between the foundry business and the brand providers, integrating the followed methods--normative analysis, empirical analysis and comparative analysis, the author gets the following research findings: ①Integrating the document literature and theoretical principles, the author summarizes the theoretical basis for generating foundry cooperation, also analyzes the cooperative type between the foundry business and the brand and its evolution context.②Under the definition for the cooperation model between the foundry business and the brand, demonstrate the elements when the brand chooses the foundry businesses systematically and grasp the whole growing trend of the upstream and downstream in the industrial chain.③Using modern business theory, analyze the basic elements of the businesses、the switching costs and business efficiency and so on. Basing on the theory, combining with the current situation of China’s foundry business development, the author identifies the existing problems in OEM cooperation and proposes the optimized tips about the development of long-term partnerships.④Based on the above study, combining the actual situation of the case analysis, the author raises the reasonable proposals to maintain the relationship between the customer and the business in the case.

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