Research On The Strategies Of Transformation And Upgrading From OEM To OBM In JZ Photoelectric Cable Company

When the development of economic globalization and the strengthen trend towards the international production,processing trade has become one of the common international trade patterns.Under the promotion of the Belt and Road initiative,after 40 years of development,China's processing trade has achieved great success.When seeing the achievements,we should realize the problem of our processing trade including low value-added,unbalanced development of industry chain,and heavy dependence on the foreign companies.With the pace of globalization becoming quickly,the advantage of low cost labor weakened continually,the problem of OEM has continued to be highlighted.Although Chinese enterprises have advantages in production cost,we still need to learn from the industrial upgrading experience of Europe,America,Japan,South Korea and other countries,especially pay much attention to the protection of intellectual property rights and brand patents in the international division of labor.We should build own brand through OBM strategy,master market control,occupy market share,and promote the overall expansion of the industrial chain.The photoelectric cable industry is a basic industry with high integration of electrical,mechanical and material industries.JZ photoelectric cable company is the backbone enterprise of civil-military integration development in China's photoelectric cable industry,that is the equipment contracting unit,the first batch of 26 national“12^thFive-Year Plan”Aerospace high-reliability military components research units and national defense weapon equipment research and production units and has mastered and broken through more than30 key core technologies.The company has six core customer groups in military industry,power,communications,equipment,components,international trade and other major markets.As a traditional processing enterprise,JZ photoelectric cable company's OEM strategy is squeezed by upstream clients,resulting in small profit margin,low added value of products,inadequate core competitiveness,difficulty in establishing independent brands,lack of terminal market control and other issues,affecting the long-term development of enterprises.This paper is to find out the problems of JZ photoelectric cable company in OEM strategy,and find the basic conditions and specific path of the company in the selection of transformation and upgrading,then put forward the implementation of OBM strategy as the choice of transformation and upgrading through Core Competitiveness Theory,Value Chain Theory and Porter's Five Forces Analysis Model,according to analyze the current situation of the domestic optical cable industry and the operation of JZ photoelectric cable company,on the basis of studying the strategies of OEM and OBM of domestic and foreign enterprises.Finally,we explore the strategies from OEM to OBM,in order to improve the management status of company and promote the sustainable development of enterprises.