Monday, October 31, 2011

OEM version of the software mean?

Glossary 1: OEM is Original Equipment Manufacture (OEM) of the acronym, it refers to a "foundry" approach, which means that producers do not directly produce products, but use their control of "critical core technology ", responsible for the design and development, control of sales" channels ", the specific processing tasks to the way other companies do. This approach is developed in the electronics industry, a lot later in the world to gradually build a universal phenomenon, Microsoft, IBM and other major international companies have adopted this approach.
Glossary 2: OEM software Original Equipment Manufacturer is the English abbreviation, literally, should be translated the original equipment manufacturer, said, referring to a manufacturer under another vendor's requirements for the production of products and accessories, also known as brandable or OEM license. to appoint representatives of processing, but also on behalf of the subcontract processing. domestic habits as collaborative production, three to processingOEM can do for you whatOEM customers means that the market, OEM customers, the more your product's market share is higher.Some experts believe, OEM integration division of labor in the global economy increasingly refined product. It has the resources for the company to increase its innovation capacity in the configuration, to minimize the investment in fixed assets.In China, when a manufacturer to extend its brand, the road before it has three: either their practice; or merge with some related businesses; or output management, output of the brand, do brandable, so-called " virtual business. "In practice, most companies tend to adopt the third approach.Enterprises to master the core technology and the establishment of a mature marketing network, you can not directly invest in production, but on behalf of other companies through to production methods, to complete its production tasks so that only pay fees and material costs processing fees, without having to take equipment depreciation, self-built plant and production management of risk, but also flexible to market changes at any time on-demand orders. which can promote the formation of new business products business strengths to develop and strengthen the business expansion of the inner force, enhance their operations and management level, thus to a higher level of capital operation. Example: Wuxi Little SwanMost small and medium manufacturing enterprises due to no capital market operation mechanism and financial support, most can not get a lot of money into marketing and advertising, resulting in the original products of good quality is difficult to place in the market, so the OEM software cooperation would allow small businesses to large enterprises with brand, marketing network and to increase production and expand sales and gain greater economic benefit, and also through the introduction of well-known brands to improve their production process and production management. Example: Skyworth, GlanzStand in this position, we can re-examine the OEM to the Chinese home appliance industry opportunity on the one hand, it can make existing domestic production lines up and running and labor resources to fully meet the needs of enterprise short-term interests; the other hand, companies may through OEM, out side the learning experience, learning technology, learning management, forging their own brand to gain time, to support long-term interests of enterprises, while domestic enterprises through OEM's use of resources can accelerate the restructuring of the brand . domestic appliance business should be to make this mode of production through the OEM software factory fully up and running, to improve internal management, product quality, the quality of training of workers, China's accession to WTO, the international home appliance enterprises will pose a great threat to domestic brands, although This may be a long transition period, the domestic appliance industry and trade enterprises of this technology integrated business model will continue for some time, but this is an inevitable trend.

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