The Research On How To Transfer And Upgrade OEM Model Of GD Group Company

In the beginning of the eighties of the last century, GD Group Company grasped the major opportunity of international industry transfer and the vigorous development of OEM production mode in our country. It grew up fast and right now became the biggest OEM manufacturing enterprises of notebook computer in the world. With the atrophy of notebook computer market, the low price competition in OEM industry is becoming more and more fiercely. While domestic labor cost and the price of raw materials are becoming more and more expensive, the profits which GD Group Company gains from OEM production mode continued to decline. It means that the existing OEM production mode is in trouble. Transferring and Upgrading are proved to be urgent need if GD Group Company wants to survive and even to develop sustainability.This research is based on global value chain and value chain upgrading theory. It takes resource-based theory, theory of core competence, dynamic capability theory and other transferring and upgrading theory as an important theoretical premise. By means of the analysis the presence of problem of GD Group Company’s existing OEM production mode, It shows that GD Group Company will face multitude of challenges in the process of transferring and upgrading. And then we discussed the path and strategy choice to transfer and upgrade. Finally we arrived at a conclusion of the feasible solution. Firstly, GD Group Computer can enhance ODM manufacture business by technological innovation and product upgrading. Then transfer and upgrade to professional electronics manufacturing services provider through improving the process flow. Finally build GD brand via value chain upgrading and transition to OBM. In this stage, both EMS and ODM will be kept to provide support for OBM building.