The Research Of Transformation And Upgrading In Enterprises Exporting Power Tools

Now China is the biggest country for producing and exporting power tools, because power tools factories benefited from cheap labor cost and good policy caused by the reforming and opening of China in recent more than thirty years. And over 85% of power tools produced in China is exported to overseas market. But we must see that even thirty years past, the product power tools is still at the stage of DIY, universal type, without advantages of technical and marketing. With the coming of economic crisis in 2008, many OEM purchaser in Europe and America were attacked heavily by it, and the enterprises in China are same also. And with the rise of material cost, labor cost, currency rate caused by adjustment and control of domestic economic policy and international currency rate policy, the profit of OEM products have been reduced much, and the factories in China are facing the competition of power tools enterprises from Southeast Asia, South Asia, Europe and America. So the factories exporting OEM power tools come to the crossroad of transformation and upgrading.In this thesis, the author firstly learned about the characteristic and current situation of factories exporting OEM power tools, and secondly studied the articles about transformation and upgrading of Industry, Middle and Small enterprises and exporting companies, and then made the analysis for advantages and disadvantages of power tools factories and inner and outer environment they located in, finally got the solution that the transformation and upgrading should be based on the current situation of enterprises owned, because the factories are different in size, technics, production and management. Five kinds of ways for transformation and upgrading are pointed out, including the updating of production, technics, products, marketing and global value chain. The case of Baoshide (China) power tools company well explained the way of transformation and upgrading of China power tools company. Finally, the author give the suggestions about the possible problems happened in the process of updating and got the conclusion for whole thesis. The purpose of writing this thesis is supplying more references for many middle-small enterprises through studying the transformation and upgrading ways of factories exporting power tools.