A Study On The Operation Strategy Of The IT Electronic Manufacturing Services Industry Based On The Point Of View Of Harmonious Symbiotic System

This study re-examined the substance of the Information Technology EMS(Electronic manufacturing services) industry from fundamentals theoretical study,and argues that EMS "at the low end value chain" is a grave mistake in the newcomplex Information Technology industry environments and based in China;UsingMulti factor line regression method and Correlation coefficient analysis to study thelast ten years financial data of the IT renowned brand and its EMS supplier, Thevalidation result shows that the brand owner’s cost of sales rate decreased year ofyear, which did not come from the brand company internal improvements, but itsEMS supplier‘s contract prices delivered results; The analysis shows that thecontract price is low in current EMS industry,which actually result from the viciouscompetition among the suppliers. since1996to2011, EMS firms took more and morresponsibilities in the product value chain, but their profits rate reduced90%.TheEMS price has deviated from its value, theoretically, the price need return to theEMS value; Based on the current dynamic industrial environment, the brands don’tsend the orders to only one supplier, but chooes2to3suppliers to allocate theorders with consideration of business risk and competition. Also, the suppliers havemore customers who are competitors against each other, consequently forming aMultiple Network Constraints Relations, and the suppliers have the symbiotic andcompetition relations. In the IT Industrial chain,the distribution of interest amongthe brands、EMS firms、and the operators of EMS firms become more and moreunbalanced,while, the brands cannot ignore the rising accusations of "sweat shops".Based on these complex and confronted formidable challenges of industryenvironment, this study proposes system views that each partner on the industrychain will harmonious symbiotic and Co-Win coexistence, and demo the systemview,this study is for references to similar research, and also for IT EMS firms whocan use it as reference to make operational decision.