Friday, April 17, 2009

Transition from OEM to ODM, then to OBM

The traditional way of approaching innovation for developing countries was to strive to make high-quality products at a low cost. In this case technology-followers tend to attack the established market since they did not have their own technological foundation. Hence, Koreans firms had to start as OEM providers. The Korean high tech firms made a transition from being OEM to becoming ODM, then becoming OBM. The move from OEM, to ODM, then OBM by Korean firms shows the transformation of strategic focus through technological learning and building of marketing competence. Some of the leading Korean electronics firms have reached the OBM stage. How have they done it?

Note: Only a glimpse of the analysis is shared due to the proprietary nature of the content.

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