Research On Operational Strategy Of Local Middle & Small Size EMS Suppliers

EMS, Electronics Manufacturing Service, booming up alone with the globally manufacture outsource trend in 1980s, has got well developed since then. The total revenue of entire industrial hit 268billion in 2007, growing 17% based on the previous year according to IDC research report. It's remarkable that more than one third coming from China market.At the mean time, data provided by speciality research institute shows, international leading suppliers have been monopolizing the EMS market in China and the total market share up to 96.6% in 2007, top10 holding 87.2% of the whole market. Those big companys including Flexitronic and Seletronic have solidified their advanced post continuingly, while local suppliers could only obtain marginal share as they hardly get order from international original equipment manufacturer. What most badly is the traditional customer of local supplier, local OEMs seem to like extending their business scale with those EMS leading companies.Furthermore, as regional EMS suppliers booming up at India and Southeast Asia, local EMS suppliers would have to face those regional competitors when fighting for living space with international EMS leading supplier. How to enlarge existing market and exploite new space from China EMS market is a really problem for local suppliers. Considering of most local EMS suppliers are middle or small size company, the thesis tries to case study the developing routes of several local leading companies and find out the effective way to layout business operation strategy for those small and middle suppliers.This thesis begins from background review of globe EMS industry, and then introduces current market circumstance and developing trend of EMS industry in world wide and in China, including leading corporation's activities and strategies in mainland, local EMS suppliers'situation and threats and opportunities they are facing.By case study of several EMS suppliers in different levels, the thesis finally tries to conclude the strategy steps that local EMS providers should follow up base on current business circumstance. The mainly solution consists of differential of market position, integration of supply chain, Strategic alignment and innovation of human resource management. The thesis hopes to support local EMS provider's development by giving particular methods that are approved to be operable in practice.