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An OEM strategy allows the company to focus on production capabilities, and leverage the power of marketing-oriented companies and their established brands. By using other people's brands, the OEM company can grow its production capabilities rapidly. The major downside is that the pricing power for OEM companies is poor. They find themselves squeezed and for all their capacity do not control their own fates because their brands are unknown. Companies that have their own brands have more control over their brand, and this gives them control over pricing. The brand is the most valuable thing in the computer business, so the OEM also has the pricing and volume advantage.
It is a significant challenge to develop an own-brand in addition to remaining as an OEM, for a couple of reasons. The first is the response from customers, who may opt to switch to companies that are not competing directly with them. This could be avoided, say...
However, by utilizing these tactics Apple has been able to build sales and revenue even in the face of rapidly-declining market share. The demand curve for Apple and Android are as follows. Note demand is still high for the iPhone in terms of number of customers, but it is losing ground to Android as the latter brings its average price down. The future of the iPhone is a little bit
(Das; Puri, 2003) Innovation Management systems are also able to generate structured processes for evaluation and sharing ideas, such that decision makers are able to target those who possess the maximum potential. Nevertheless from the perspective of a manufacturing industry, the two costs which are important are material cost and processing costs which together accounts for 60% to 70% of the cost of goods sold. Material cost reduction in this
Supply Chain Management (scm) supply chain refers to the network that links the internal and external suppliers with internal and external customers. Supply chain management (SCM) concerns with the management of such networks enabling interchange of materials and information through the network. The primary goal of supply chain management is to link the market, distribution channel, operations process and supplier base effectively at lower costs. (Hill, p.54) It is common
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