Study On The Selection Strategy Of OEM And Self Created Brand

Since China's accession to the WTO,along with the process of globalization,China has provided quality and cheap products to all parts of the world,which is also known as the world factory.But this mode mainly depends on low labor cost and low value-added products.In recent years,with the disappearance of demographic dividend,the rising price of raw materials,the appreciation of RMB and other factors,as well as the lack of international market demand,trade restrictions of relevant countries and other external factors,China's manufacturing industry begins to bear enormous pressure.In particular,due to the lack of independent research and development and brand operation capabilities,a large number of OEM(Original Equipment Manufacturer)enterprises can only obtain small profits in the industrial division of labor,but bear a high economic risk.OEM or OBM(original brand manufacturing),which is a strategic decision for Chinese enterprises,especially for small and medium-sized enterprises in the initial stage of development,is facing a major strategic choice.OEM production,also known as contract manufacturing,means that brand manufacturers do not directly produce goods,but use their own core technologies and patents to develop new products,and entrust specific production tasks to other manufacturers of the same kind.The manufacturers undertaking processing tasks are called OEM manufacturers.Independent brand(OBM)is to manage its own brand on behalf of the factory.In other words,the manufacturer creates its own brand design,establishes its own brand and owns its own brand products.And independently completes the design,procurement,production,sales,and other processes with this brand.Different choices form different business models.In this paper,how to make and choose the best development strategy when facing the internal and external environment is analyzed.This paper mainly takes the problems and challenges of K aluminum company's OEM production mode as an example,aiming to discuss how to make use of its own resources and capabilities to achieve growth and development,OEM and independent brand under the current macro environment of rising production costs,global economic downturn and increasing international trade friction.In addition,OEM and OBM,which kind of model is the best strategic choice for an enterprise.In this paper,SWOT model is used to analyze the internal and external environment of the OEM enterprises,and the QSPM strategic decision-making matrix is used to make a comprehensive analysis to explore the optimal development path of K Company under the external environment and existing resources.Through the analysis,it is concluded that the optimal development strategy of K Company is "WO twist transformation",that is,the path from OEM to OBM.There has three main strategic policies.First,on the basis of maintaining the existing OEM orders,improve the production process of the enterprise and strengthen the internal management ability of the enterprise.Second,"two legs" walking,OEM production and independent brand development in parallel,reduce the risk of enterprise transformation.Third,increase investment in research and development,enhance the independent innovation ability of the enterprise,complete the transformation from OEM to OBM,and establish brand value.It is expected to explore the development,transformation and upgrading path of OEM production mode with this case,and seek quantitative and qualitative changes for domestic OEM enterprises.