Development Strategy Study Of Original Equipment Manufacturers Invested By Foreign Companies

Original equipment manufacturer mode is the important channel for developingcountries integrating into global production network，which plays an important role ineconomic development. With the expansion of enterprises scale, the contradictionamong the industrial structure and market competition and economic situation startsto appear increasingly, and the original extensive economic model could not fit inwith the needs of new situation. The labor cost, raw materials cost and other cost ofproduction factors increase gradually and people start to pay more attention toenvironment protect, so it is an urgent problem for the Chinese enterprises and foreignenterprises, especially for original equipment manufacturers, to adjust strategy.This thesis takes original equipment manufacturer Company A as an example tomake an in-depth analysis of the dilemma that such manufacturers are facing, andproposes the countermeasures. Based on the previous study, this thesis uses SWOTanalysis method to analyze the strength, weakness, opportunity and threat ofCompany A and concludes the corresponding strategy combination. According to thetheory of competitive advantage proposes by Michael E. Porter, the thesis concludesfurther that low-cost strategy is optimal strategy for Company A development, andimproving human resource management and supply chain management is theimportant channel for company A out from dilemma. For human resourcemanagement, this thesis analyzes the reasons of higher acquisition cost, using cost,development cost and turnover cost from foreign executives, indirect labors,promotion and salary system and dispatching labors, and proposes correspondingmeasures. For supply chain management, this thesis proposes the improvementmeasures from direct cost, activity cost and transaction cost from professionalpersonnel, informatization, inventory management mode, and enterprise relationshipon the supply chain and so on. The research achievement of this thesis can helporiginal equipment manufacturers invested by foreign companies realize the currentdevelopment limitation, and provides the strategic analysis and countermeasures, so ithas guiding significance and practical value.