|Lee, Kwong-kin Alex
|Transformation from OEM to OBM : a case study of a hi-tech company
|Manufacturing industries -- China -- Hong Kong -- Case studies
Hong Kong Polytechnic University -- Dissertations
Department of Management
|77,  leaves : ill. ; 31 cm
|Original Equipment Manufacturing (OEM) has been a widely adopted form of business among Hong Kong manufacturers under which local manufacturers produce according to the requirements of the orders / contracts received from overseas companies. With the rising labor and land costs in the Pearl River Delta, Hong Kong manufacturers are gradually losing the competitive advantage of low cost manufacturing. Additionally, the rising importance of brand name also causes brand owners to exert stricter requirement on subcontractors which makes the OEM business become less profitable. Facing these challenges, many researches on the future prospects of the Hong Kong industries have concluded that moving to Own Brand Manufacturing (OBM) is one of the future directions for the Hong Kong industries. With the aforesaid background, the major objective of this research is to study the trajectory of a company moving from the OEM to the OBM business. In this research, the author has investigated the case of a hi-tech company which is seen to have successfully transformed from OEM to OBM. Based on Dr. Judith Hollows and Dr. Michael Hobday's model, the author has looked into the structural changes taken place in the company in its Production, Sales and Marketing, and Research and Development functions and studied how these changes have led to the successful transformation of the company. At the conclusion of the research, the author has extended Dr. Judith Hollows and Dr. Michael Hobday's model by identifying two types of factors based on the degree of their facilitative effect: the Direct Pushing Factors which contribute directly to the successful transformation, and the Supporting Factors which when standalone cannot lead to transformation but will help accelerate the transformation process.
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