A Study On The Affecting Factors Of Transformation For Enterprises From OEM To OBM And Policy Implications For China's Export-oriented Enterprises

Based on the theory of comparative advantage in international trade, OEM firms get rapid growth and take a proper place in global industrial chain system. However, with the world economic downturn, incremental costs increase, as well as frequently trade friction, malpractices of OEM mode gradually highlighted. Under this circumstance, more and more domestic scholars appeal to OEM firms to transfer from "OEM" to "create band manufacturers". But the transition can't happen overnight, and the process itself set forth requirements for core competence of OEM enterprises in many aspects. This thesis aims to study the core competence for OEM firms in transition to ODM firms or even OBM firms, and the way to build this competence. After that, the thesis investigate the feasibility for OEM firms to choose the way with both OEM and creating brand, accordingly give policy recommendations for OEM firms' transformation process.In this thesis, a game model of two-stage is constructed. Separately, the two stages discuss elements which is necessary for OEM firm to transfer to ODM and OBM. When considering OEM's transition to ODM in first stage, a dynamic game model is built, to discuss when should a OEM firm transfer to ODM. Besides, an oligopoly OEM model is built in second stage, when ODM is in transition to OBM, to study the possibility for local OEM enterprises to create its own brand simultaneously, and strategic behavior to compete with the original brand manufacturers through differentiate products in international market. In this stage, necessary conditions for OEM firms' transition to its own brand is discussed, as well as feasibility of the way to OEM and create own band at the same time. This stage also analyses the policy towards OEM products and own brand products.After analyzing the two-stage game model, the thesis concluded that, when the OEM firm take advantages over core technology, foreign company will choose it as a ODM firm, and when the ODM firm have a certain brand advantage, and the cost of creating brand is in a reasonable range, ODM company will choose a two-pronged strategy--both ODM and creating its own brand. Through these conclusions, we found that, the government policy to pursue welfare maximization is not benefit for creating brand, domestic government should make corresponding policies through specific circumstances of OEM firms, to support the transformation of domestic enterprises.