The Research Of The Transformation Dilemma In The OEM Enterprises

Since the entry into WTO, the OEM enterprises in China have ever been growing up very fast and achieved the tremendous contribution for our economy and society. However, with the change of economic situation on both domestic and international market, the trade protectionism is strengthened in the developed countries in which the consuming demand is large-scaled sliding while alternative suppliers from the emerging market is drastically competing for the OEM business, nevertheless, the exchange rate between RMB Yuan and us dollars has been growing up all the time as well as Chinese labor cost. With the above said worse situation, the OEM enterprises are encountering the challenge of the survival in China. From the perspective of global value chain, this thesis would emphatically research the dilemma and strategy during the transformation while analyzing the strategies taken at Foxconn as the representative of the OEM enterprises facing the threat of the survival.The thesis does not only analyze and research the theory of the global value chain, smiling curve and the industry upgrading but also the essence of the transformation in the OEM enterprises in China. Based on the analysis and research, the author put forward the theory of primary transformation and progressive transformation. Due to the lack of the advanced scientific technology and the independent brand the products with the intellectual property, the foreign customer with famous brands have controlled our OEM enterprises over a long period of time which are always located at the lowest end of the global value chain with the less added value in the products. When the situation related the economy goes worse in China and in the world, the competition among the OEM enterprises tends to be more intense, whose survival and development is threatened by the worse economic situation. It will be the inevitable choice and the necessary trend for the OEM enterprises to adopt all possible measures for the transformation and upgrading with the purpose of improving the ability of research and innovation, establishing the sales network and creating the independent brand. On the account of the economic factors in the history and realistic, there always exists the dilemmas such as human resources, fund flow, technology and product positioning in the course of the transformation and upgrading in the OEM enterprises. Based on the analysis and research to those matters and dilemma existing in the process of the transformation and upgrading in the OEM enterprises, the thesis brings forwards the series of corresponding proposals and strategies for the transformation and upgrading. Foremost, the thesis holds the suggestions that at the present stage the OEM enterprises must reinforce the existing OEM business. On the base of ensuring the proper supply of the fund flow, the OEM enterprises could be able to successfully carry out the primary transformation and progressive transformation with the enhancement of the ability on science and technology, research and innovation.Hopefully this paper could bring about the effective and scientifical measures and strategies for the OEM enterprises to accomplish the transformation of research and innovation, sales and services, brand with high added value. Last but not least it is the OEM enterprises’final goal to enhance the core competitiveness and achieve the goal of sustainable development.