A Study On Strategy Transformation Of MK Company

In recent years, due to rising raw material prices and labor costs, energyshortage, RMB appreciation and export tax rebates, Chinese OEMenterprises’ shortages emerge in added value, profitability and risksresistance. The companies are seeking strategic transformation.MK Company is an OEM enterprise in illumination luminaries withpowerful manufacturing base, mature production capacity and engineeringtechnology. How to maintain and consolidate the company’s currentdominant position in the OEM business, while strengthen the development ofODMOBM business and enter into global market place with own brand is akey strategic problem facing with the company.This thesis uses case study method to establish a research path formtheory introduction to case study. The thesis conducts studies on MKCompany’s internal and external environment and clarifies its position invalue chain of global illumination luminaries industry and points out how the company gradually upgrade to ODM and OBM based on existing OEMbusiness model.The thesis is divided into five parts. Firstly, it introduces the keyproblem and describes the goals, significance, path and content of theresearch. Secondly, it briefly explores the theory of global value chains anddiscusses concept of OEM, ODM and OBM and the difference amongrequirements of three business models. Thirdly, it reviews the external andinternal environment of MK Company, thus giving rise to the necessity andfeasibility of business upgrading analysis and argument. Fourthly, it definesprinciples, overall ideas and strategic objectives of MK Company’s strategytransformation, and presents the main works and tasks in three phases ofOEM, ODM and OBM. Fifthly, it discusses strategy transformationimplementation system from perspective of technology R&D, brandmarketing, base management and organization study.This thesis can provide reference for strategy transformation of MKCompany. It also hopes to present some own insights of the change ofChina’s "world factory" model and help to other similar manufacturingenterprises.