Study On Transformation Capabilities And Transformation Mode Selection Of OEM Manufacturers

Since the financial crisis in2008, the global industrial structure has been faced withunprecedented readjustment and upgrade. This brings great chances to China, which is at thenew stage of industrialization. To accelerate the transformation of enterprises, especially oftraditional manufacturing, has practical significance for the transformation of way ofeconomic development, industrial structure readjustment as well as changing “made in theChina” into “created in China”.In traditional manufacturing, there exist a large number of OEM enterprises.Consequently they always compete fiercely with each other for OEM business. The OEMenterprises in China, at the lowest end of the value chain, get a little added value and profitsof products in the process of manufacturing. As a result, helping the OEM enterprises get outof the present dilemma and improve the enterprise transformation to break through thebottleneck of enterprise development is important for catching the opportunity of the globalindustrial structure readjustment and upgrade to successfully readjust the industrial structureand transform the way of economic development in China.However, there are a few researches on the OEM enterprise transformation due to a fewsuch enterprises in developed countries. Contrarily, many OEM enterprises in China need totransform and we have many things to do in terms of researches on the OEM enterprisetransformation. Generally speaking, these studies are loose and not systematic orcomprehensive. The present effort, choosing the OEM enterprise transformation ability andchoice of mode as the research theme, proposes the five abilities of the OEM enterprisetransformation on the basis of exploratorily defining the OEM enterprise transformationability, and establishes the theoretical mode based on previous researches to study therelationship between the OEM enterprise transformation ability and the choice of thetransformation mode. Thus, provide scientific theoretical basis and practical instructions forthe successful OEM enterprise transformation.Focusing on theoretical basis-ability system-research mode-research value and based onthe theoretical research as well as the empirical analysis, the present paper draws seven conclusions as below:(1) The OEM enterprise transformation ability consists of the ability of recognizing theenvironment, the reproduction ability, the marketing ability, the sustained creation ability andthe financial ability.(2) The OEM enterprise transformation mode includes three dimensions of approaches,degree and procedures of transformation. The OEM enterprise transformation abilityinfluences its choice of mode.(3) The better the ability of recognizing the environment, the reproduction ability, themarketing ability, the sustained creation ability and the financial ability are, the more possiblywe choose the direct transformation mode.(4) The better the ability of recognizing the environment, the marketing ability, thesustained creation ability and the financial ability are, the more possibly we choose thecomplete transformation mode. The reproduction ability has little apparent effect on thetransformation degree.(5) The better the reproduction ability, the sustained creation ability and the financialability are, the more possibly we go through the procedure of ODM(Original DesignManufacturer), while the ability of recognizing the environment and the marketing abilityexert little obvious influence on the transformation procedures.(6) Choices of transformation mode vary in the OEM enterprises of different scales.(7) Choices of transformation mode vary in the OEM enterprises of different brandproperties.According to the conclusions above, the present paper proposes detailed measures topromote the successful OEM enterprise transformation. That is: the transformationapproaches, degree and procedures are chosen in accordance with the OEM enterprise ability;the OEM enterprises should focus on the long term, attach importance to the technicalaccumulation to develop the transformation ability.