A Simulation Research On Dynamic Factors Of OEM Enterprises Transformation

In traditional manufacturing industry, there are lots of OEM enterprises. Consequently they always compete fiercely with each other for OEM business. The OEM enterprises in China are at the lowest part of the value chain and the products are low value-added and low-margin. In recent years, the low-cost advantage of OEM enterprises in China is losing and competitiveness of neighboring countries and regions is increasing. So many OEM enterprises are closed down. Facing of the pressure of global economic slowdown and the tide of transformation and upgrade, it's urgent for OEM enterprises to transform for gaining a sustainable competitive advantage.In this thesis, the background and research significance are firstly introduced and then a review about the theories related to the work is provided, especially focus on the motivations of transformation, which not only analyze the existing research results but also point out the lack of current research. Then some dynamic factors are summed up such as main participants of transformation, government, market environment, R&D funds, transformation cost and the highest level of technological level in the industry. By using AnyLogic simulation technology, a simulation model is established and some experiments about the variation of parameters are done, which discuss the specific influence of these parameters on transformation. Finally, in full text summary, according to the research conclusion, the thesis point out the deficiency of the research.The main conclusions of this study are as followings. When the market environment is good, the active willingness of main participants has a strong influence on transformation. When the market environment is bad, the active willingness and the passive willingness both have strong influence. The influence of government on the transformation decreases as the market environment deteriorates. As the support from government lows, the influence of active willingness increases and the influence of passive willingness weakens gradually. In different industry, the influence of willingness of main participants and market environment is similar. But the influence of government on the transformation is different.