Abstract

In recent years, factors that influence the trade between firms have been shifted from the ordinary shipment due date, quality, cost to new business models. These innovative changes push suppliers in Taiwan giving up as simple ODM role to concentrate on international division of labor. Facing new business challenges, manufacturers in Taiwan actively or passively think of new ways to achieve another business success, more than just ODM role, Taiwanese manufacturers are now capable in design, manufacture and even global logistics management and support. This outstanding performance attracts international enterprise coming to Taiwan and searching for business partners in order to survive and raise their competence. Nowadays, Taiwanese suppliers play as the top ODM role still have to be ready to combat the cheap labor and product cost from Mainland China and South East countries. Firms now devote on developing high-end and value-added products to catch more attention from worldwide market procurement and get rid of low balling nightmare. Aim at this phenomenon and taking wireless communication industry as example, this study will focus on the value chain division in ODM industry and highlight future suggestions for ODM firms. 1. Building Own Brand Qualifications for ODM firms to build its own brand: (i) Strong product quality guaranteed; (ii) Comprehensive marketing and service channels; (iii) Rich source and capital included. 2. Processing Vertical Integration of Industry Value Chain Not only to build firm’s own brand, Vertical Integration of Industry Value Chain also enhance firms’ competency to satisfy one-stop-shopping and products’ differentiation for customer service. (i) Control of key components and/or techniques; (ii) Abundant capital. 3. Develop Products’ Diversity and Differentiation If firms are lacking of the mentioned abilities to build its own brand and to develop vertical integration, the author suggests firms to focus on products’ diversity and differentiation; products’ diversity enhances the satisfaction from customers to integrated products’ requests, products’ differentiation enables customers to raise value-added at the end-market and to create more competitive and advantageous market position.

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