Investigation And Analysis For Global EMS Provider's Strategy In China

With the high growth of electronics industry and company's continuous M&A before 2000, the YOY of the biggest global EMS providers had reached more than 20% with the growth margin being higher than that of their sales revenue, and the performance of the biggest global EMS providers including Solectron, Sanmina-SCI, Flextronics, Celestica, Jabil were very good with their growing market share. But since half of 2000, the global electronics industry's downturn and price campaign between the famous electronics brands had shrunk the EMS providers' profit margin, which compelled the biggest global EMS providers to expand their business scale at lower cost.Considering satisfy customer's requirements and enhance operating performance as well as adjust cost structure, the biggest global EMS providers are energetically adjust their global supplier chain and strengthen their strategic allocation in China mainland. Also, as one of their most important global strategy (i.e. organization reforming, supplier chain expanding, ERP-based resources aggregation), optimizing manufacturing operation mode including China mainland is still their managing focus. According to the forecast of analyst, out-sourcing contract business will keep on developing in high-speed and the revenue of EMS will reach $200 Billion at the growth rate of 25%But what should China local EMS providers do facing so big industrialpicture?This article deeply investigated and analyzed the organizational operation and production mode of the biggest global EMS providers through the comparison on their operation situation and their strategy in China mainland based on the characteristic of EMS and it's developing prospect. In order to inspire China local EMS provider with the consideration on how to go out to the world, this article also give some suggestions on how to win the competitive advantage against the biggest global EMS providers through the gap analysis between the biggest global EMS providers and the China local EMS provider by the means of SWOT analysis method...