The Survival State And Development Research On Foreign Direct Invested OEM Enterprises

With the trend of economic globalization in the20th century, China took theadvantage of our energy and labor force resources to actively join in the global cooperativeproduction. Then during the period of over thirty years of reform and opening-up, Chinahas gradually formed the Externally-oriented Economic Industry Development Modecharacterized by international OEM/original equipment manufacturer0. Since then, Chinahas been outstanding among OEM countries and has become a big manufacturing countrywhich is called “World Factory”. China has created a miracle that national economy isgrowing with a high speed in the following thirty years. In the kingdom of the world OEM,the main parts are still Foreign Direct Invested OEM enterprises in which small andmedium enterprises are the absolute majority. Therefore, one of the important focuses isthe survival and development of small and medium enterprises.This article focuses on the research and study according to the above-mentionedbackground. Firstly, it makes a definition of relative concepts and reviews on the importantdocument researches over the years both home and abroad. Secondly, by focusing onvarious development stages of OEM enterprises and SWOT analysis employed, it fullyanalyzes the advantages and disadvantages of small and medium enterprise itself based onFDI which is still in the period of post-crisis in China. This paper also studies the chancesand threats the small and medium enterprises are faced with. Thirdly, it discusses itspossible developing direction according to SWOT matrix and combination. For example,the process, product, function and chain as well can be updated and diversified if theenterprise transforms into ODM or OBM. Fourthly, it analyzes and also certifies thefeasibility of the developing road in the case of SG Corporation. Finally, the conclusion ofthe paper research is summarized and a prospect is put forward.