Product-Driven Technology Upgrade and the Branding Development: A Simulation

• Main Authors: Tu, Ying-yi, 杜英儀
• Other Authors: Yuan, Benjamin J. C.
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/p3v9mc

博士 === 國立交通大學 === 科技管理研究所 === 103 === This paper addresses an important but normally ignored capability development, the stage of original product manufacturing (OPM) in the stage of upgrading technology from ODM to OBM. We propose a four-stage "OEM-ODM-OPM-OBM" evolution model of technology upgrading and brand development. It explains the development strategies and patterns by technological firms in developing economies for developing their brands. The reason why many firms may fail in branding or err in long term strategy before they arrive at the OBM stage is because they ignore the selection of strategic patterns in the developmental phase of a new product. This acts as a barrier between ODM and OBM in the previously identified three-stage model of “OEM-ODM-OBM”. This study constructs a model consisting of one brand-owning firm and two contract manufacturers with different technological levels in order to illuminate interactive effects at the technology market, contract manufacturing market, and product market levels. Scenario-based simulation and numerical analysis are employed in combination with this model to explore contract manufacturers' long-term optimal brand development strategies in lieu of brand-owning firms' countermeasures. We find contract manufacturers would adopt their optimal brand development strategies to move toward long-term brand development strategies through changing strategies in three turning points.