BiMBA Final PaperIndustrial Upgrade in mainland ChinaBiMBA Part-time 2007 Class2Group 13AbstractAs the development of fabrication and improvement of individual income in china, the labor cost became to a greater extent expensive. And our commercial environment is changing rapidly, especi anyy the appreciation of RMB. These factors all increase the crisis of traditional industry in china. So the industrial lift in China is an imminent issue recently. The path of industrial upgrade for manufacturing should be from OEM to ODM and OBM. Meanwhile, Service outsourcing seems great capability with industrial upgrade. The most exciting thing is that the industrial upgrade not only contributes to coastal cities, but also benefits upcountry cities.
1.Industrial upgrade for manufacturing in china1.1.Current status of china?s manufacturing industryIn wound of the immense trade surplus gained in recent years, China?smanufacturing still remains at the low end of the outside(a) division of labor spectrum and derives much of its international competitiveness from its advantages in low production costs. Chinese manufacturing enterprises are also characterized by low profit margins. How should China?s manufacturing industry act industrial upgrade?1.2.Introduction of optimal path to stimulate upgradeThe optimum path for an enterprise in emerging market economies to realize upgrade and innovation is to evolve from simple contract manufacturing, through with(predicate) R&D design engineering, to eventually make its own brand.
For almost three decades, since China initiated reform and theory up to the outside world, OEM (original equipment manufacturer), as an effective cooperative model, has hold up an important way for Chinese manufacturing enterprises to enter the international order chain system and participate in international market competition. To upgrade from OEM to ODM (original design manufacturer) and OBM (original brand name manufacturer), the former provides keen accumulation and technological accumulation for the latter, while laying the pes for future brand promotion. A large number of internationally known enterprises went through this road.
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