Taiwanese Firms Gain And Prolong Competitive Advantages

Original equipment manufacturers produce a necessary component of another company’s product, often relying on economies of scale to drive down production costs. OEM’s typically don’t provide customer support, instead passing on those responsibilities to their client whom bought the original product. Original design equipment manufacturers on the other hand, produce a product that is eventually rebranded once purchased by another company and can be thought of as “outsourcing”. The main difference between the two is that OEM’s produce a product by their own specifications, while ODM’s produce products by another company’s specifications. ODM’s also aren’t in charge of final distribution, while OEM’s are. Another difference is that unlike OEM’s, ODM’s also

MTO companies typically allow consumers to purchase products that are customized to their specifications. MTO strategy only manufactures the end product after getting confirmation from the customers. Unlike mass production where a material is manufactured many times, in MTO production a material is created only once though the production process that might be repeated at a later time. As a result, the consumer waiting time to receive the product increases but it allows more flexibility in customization compared to purchasing from retailers' shelves (Zhang et al., 2012). According to Muda et al. (2009), MTO companies can be classified by the following two types -

Besides that, using the MC as the core manufacture concept will lead them gaining the long term relationship with the customer by providing them with superb and unique value that cannot be provided by another company

The introduction of quality management systems to auto manufacturing are examples of incremental innovation. They improved the quality of cars and forced manufacturers to make incremental changes in response to a new competitive environment. There is a major focus in incremental innovation in today’s business place. Companies are developing new methods to determine how consumers use their products to determine everything from minor to major adjustments, add-on products or design elements to further entice the consumer to purchase.

Although the U.S performance in manufacturing is remarkable there are some challenges that are an issue for the sector and it could lead to a downshift to of the economy. According to the Bureau of Economic Analysis (BEA) it reports that the U.S produces about $1.80 trillion in revenue, this would make the U. S industrial sector the world 10th largest economy in terms of (GDP). Productivity has also been in a stable rise until 2011 but in the new type of market the U.S is trying to compete outdated forms of manufacturing procedure are unsuitable forms when it comes to implementing new technologies (Kathawala, Y., & Hilsheimer, G. (1991)). Consumers want variety and innovation without the cost and quality penalty. This type of change requires manufacturing to be cost effective and flexible to meet market demands

Most manufacturing enterprises are organized as networks of manufacturing and distribution sites that procure raw materials, transform them into intermediate and finished products, and distribute the finished products to customers. The simplest network consists of one site that performs both manufacturing and distribution. More complex networks, such as those required to manufacture mainframe computers, span multiple sites that may be scattered around the world.

Barney, J. (2004). Firm resources and Sustained Competitive Advantage. Strategy: Process Content Context: an international perspective, de Wit & Meyer , 285-292.

Operations management is important in CDS (Concept Design services) if they are to continue being one of Europe’s most profitable home ware businesses. As with any other company, CDS objective is to add value to their final product while using its resources effectively and efficiently through its internal processes like planning, scheduling, control, quality. The company has successfully been able to apply the technology used in the aerospace sector into home ware items, through the mastering of injection moulding machines. Moreover, the company has expanded into a premium home ware product market from low end product i.e. “Focus”, integrating new functions within its operations, such as forming partnerships with reputable designers and increasing the volume and complexity of its production i.e. High design value products and outsources the low end low profit making product i.e. “Focus” brand.

But the biggest key success factor was creating the supply chain, so called Original Equipment Manufacturer, tier-1 auto parts manufacturer and tier-2 auto parts manufacturer. The OEM represents big three US supplier and its main function is branding, design and assembly of the automobiles.

As a Wholly Owned Foreign subsidiary in the Chinese market Our Aero Engine Assembly and Maintenance firm will encounter significant challenges as a Greenfield start up within the Chinese markets and our Human Resource Strategy will be key to competitive advantage.

How does Alibaba group create corporate advantage? (Why are the businesses under one roof?) Is this corporate advantage sustainable?

But still they relied on OEM strategy in order to increase their revenue. By 2003, Galanz’s primary exports were OEM microwave ovens, which had no brand recognition. The globalization was causing fierce competition among MNC’s which pushed Galanz into new markets and branded products. Few years later, Galanz recognized that their products were acknowledged for low cost and good quality where the OBM strategy was started to be brought in with the help of overseas R&D centres. Furthermore they started expanding their own OBM sales by cutting down OEM orders.

Employees pay structure was revamped which focused on incentive for product innovation and creativity. Alteration from fragmented system to modularized system resulted in proper utilization of injection molding operations and the manufacturing plants were relocated to low costs of locations. Hypothesis driven method was used to change and improve the processes. Customer oriented philosophy was endorsed which was based on feedback from the customer base. Company’s brand ambassadors participated in conventions across the world to discuss about product innovation. The sourcing was more strategic by starting pilot programed focus on the cost rationalization of company’s raw materials. The distribution channels were moved closer to customers and companys marketing worked in conjunction with biggest retailers which aided in joint forecasting and product

In the fierce competitive environment where customers expect the products they purchased are unique and customized, and the price should be as low as mass-produced items (Radder & Louw 1999). Therefore, more companies realize that a profound change in production procedures and flexibility of structures are needed to meet the challenges. While Mass customization (MC) has provided an opportunity to cope with varied customer needs, such as Dell computer, Daimler smart car, Swatch, IBM, Proctor and Gamble and Hewlett-Packard, leading a successful business practices by accommodating specific customer requirements (Selladurai 2004). Originally, the notion of MC was coined by Stan Davis (1987) in his book “Future Shock”, which defines MC as a fundamental paradox allowing firms to produce as various goods as possible based on volatile customer needs, but in a cost-effective way.

their China subsidiaries. In the first stage, the model proposes factors affecting the extent of knowledge contributed by an MNC