OEM Products: A Design Solution for Improved Profits (Innovate or Perish)

摘要

China and in particular it appears Ningbo,has a very large original equipment manufacturing base,while on the surface this appears to be a significant and rapid wealth generator it is destined to profit reduction and collapse in the long term,unless the OEM company adds a level of value that is not available from its competitors. The traditional method of OEM,was for a company to develop a special technology,make the component,demonstrate how it would improve and add value to another companies product.For example,an electronic company discovers that they can build a cost effective method of lighting gas and safely controlling it,but they do not make gas heaters.Another company makes gas heaters but they do not know much about electronics.If the two companies work together both can share in the benefits of the relationship and grow the business and wealth together as equal shareholders in a new joint ventrue business.This relationship will grow and continue to maintain a competitive advantage only while both companies work together to improve their part of the product,thus ensuring that the whole product is greater than the individual companies can achieve on their own.