The Strategy For EUP To Walk Away From The Bottom Of The International Value Chain

This thesis is trying to find a suitable way for Eup to walk away from the bottom of the international value chain, based on the situation of Eup and the advantage and disadvantage analysis of ODM and OBM models.This thesis contains 6 parts. The first chapter states the background and purpose for this thesis. The following chapter gives a brief introduction on the domestic and oversea situation regarding the vacuum cleaner business, which shows the category environment of Eup’s product. The third chapter summarizes the research made before on how to walk away from the bottom of the international value chain. The next chapter presents the situation Eup is facing and the solution to Eup, which is to cooperate with international brands to create a subsidiary brand, by using the tool of GAME, SWOT and BREAKEVEN theories. The fifth chapter is focusing on the pricing issue, which is the most important factor to walk away from the bottom of the international value chain. A strategy to price based on product lifespan is proposed. What’s more, based on the nature of international business, the thesis further studies the pricing based on exchange rate and raw material price fluctuation are raised. Lastly, it gives a detailed picture on the procedure to price the new and old products, in order to walk away from the bottom of the international value chain. The last chapter makes a brief summarization and describes some risk and shortage of this study.With the development of international situation, especially with the deterioration of Europe’s sovereign-debt crisis, many OEM factories are facing a more difficult and harder situation. They desiderate slipping the leash of international value chain, moving to the 2 high ends of the industry chain and the revolution of the industry. Hope this thesis will be of help to the OEM factories, who want to upgrade the industry.