Original Equipment Manufacturer



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Company Research Paper Abstract

Since China allowed foreign countries to come in and make investments, activities in the Original Equipment Manufacturer (OEM) business in China have been seen to expand. The rates of expansion have been unprecedented, because, at one end, companies are attracted to the fairly low general costs of manufacturing, and, at the other end, property enforcement intellectuals remain a concerning issue for several foreign companies (Robert 74). Initially, OEM was just a company on its own, which helped to distribute equipment to other neighboring companies, so that the latter could incorporate them into another product, using resellers' brand new name. For instance, a refrigerator manufacturer, such as Frigidaire, could sell its refrigerators to a certain retailer, such as Pear, and then resell the product using the brand name owned by Pears.


However, Original Equipment Manufacturer businesses obtain a product and use it for the second time to come up with a new product, but with its brand name. Original Equipment Manufacturer businesses shall be amongst the top trading groups in the fields of technology and systems, as well as industrial components across markets from the East to the center and the North of Europe. This is because Original Equipment Manufacturer provides services, which are detailed and advanced in the systems and components in the industry that comes from top suppliers.

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One of the greatest Original Equipment Manufacturer products is Alcatel, which must be environmentally friendly and cause no electromagnetic radiation harm to the end-user. Besides, the Alcatel product must fit into the new business model that fosters innovation to meet the client’s needs. Innovations allow moving above the current to future technology, as ideas keep on building now and then. An Original Equipment Manufacturer firm must be able to analyze the world trends in technology development so that it can come up with a product that would be a solution to the technological advancement anticipated in the future.

Another factor observed is that Original Equipment Manufacturer is based on expertise at a high standard, efficient logistics, and the local market, which is structured well, making it attractive for other organizations, such as the sales supplier's organization. Original Equipment Manufacturers can bring assistance to many industries, especially when some of them discover that their capacity in manufacturing is much lower after implementing a minor project which is to follow the market, government and industries are fond of it (Gunasekaran 45).

This is because Original Equipment Manufacturer can guarantee enough security in the initial stages when industries start to operate. This is when industries work out the challenge of abandoning the equipment, which is not yet utilized, coupled with personal employment, thus increasing their margin profits. In addition, because the scale of our industries is normally limited and they lack adequate capacity, getting connected to original equipment manufacturing can assist them in avoiding the tough competition with large companies in the international market.

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OEM Company Business

Also, get connected to the original equipment manufacturing business is of immense significance for our industries, as it will allow getting out of the jeopardy of the market competition. Our industries are equipped to meet their production goals, whereas foreign companies are also responsible for sales and design, thus reducing the scope of danger in the market. This danger is normally directed towards our industries, which still have a chance to use the opportunity for growth, realize the economies of scale, and develop future strength (Schwantes 89).

Original Equipment Manufacturers must also come up with proper guidelines on how to collaborate with other manufacturing firms. The goal of such collaboration is to come up with multipurpose products, whose functionality is complex and can contain many features at the same time, thus addressing the expected customer demands and requirements. For instance, Alcatel Lucent, which is based on Bell Labs, is the biggest center of research and innovation in communications and technology.

This firm is collaborating with a global firm, and its operation has spread to about 130 countries worldwide, most of them being research centers. Hence, this collaboration of firms will help the Original Equipment Manufacturing business reduce their costs of production since each firm can specialize in only one product. In addition to that, these firms would place their resources together and cut the costs of advertisement. This is how they will fight against the stiff competition that would otherwise enable younger firms to form a cartel.

Original Equipment Manufacturers must focus on low costs of production and create products, which are tailored to the customers' demands and preferences. For instance, a mobile phone must be produced at an immensely lower cost, meaning that the component that makes up the integrated circuit (IC) must be easily available and obtained at a lower price. Consequently, the product must address the latest technological needs in the market, as this is the only way the product will manage to sustain demand for it in the market. As a result, such changes will result in the reduction of the total capital cost but with increased output.

Usually, Original Equipment Manufacturer businesses may need to buy their products in large amounts, thus producing them in the bulk of prebuilt systems. This model of OEM is utilized through an integrated system, provides a warranty on the products of the OEM business when a customer buys them. Using OEM in business enables industries to focus and put most of their energy and time into market innovativeness, which also allows smaller enterprises to overcome competition. Besides, it has proved to increase product pricing and the time it covers to discharge the product into the market.

Marketing with OEM

Marketing with OEM keeps a limited number of proper rights intellectuals that give design products. The lack of proper planning in marketing for a product startup, testing product in return, diminishes the customer's capacity to acquire potential profit for the product purchased. Utilizing the benefits of OEM may lead to the loss of control over the product. As a result, one can maintain a high quality of the product, by giving instructions to someone, who will monitor quality control procedures at the initial stages of product implementation.

For an OEM business to succeed shortly, it must focus on the rate of employment for its workers. As the technology advances and the country recovers from the great recession, the number of employees may increase tremendously – any manufacturing company may proceed to hire workers both in its production and non-production lines. A country must focus on this employment factor since the employment terms and conditions will remain under pressure. Increased productivity, rapid growth in services, and the threat of global competition make economies specialize in more advanced and productive activities, to improve the quality of their products as a whole. It will be advisable for any manufacturing company to train, keep and negotiate on better terms and conditions in the context of the work payment.

Other alternatives for this given enterprise would possibly be to market its product at the international level. It will help create more opportunities for product sales, which tend to increase when the products are marketed overseas. However, the problems of exchange rate fluctuations, pricing of goods, regulations such as duties and tariffs, should not be ignored. The OEM Company must aim at using integrated systems from SUSE because it will help to increase efficiency and manufacture customer-friendly products, which will be tremendously successful in the market. Therefore, if this vision is set as the basis for business development, it would enlarge the capital base by a decidedly bigger margin, since many manufacturing firms nowadays partner with SUSE to create their products

A few more examples of such manufacturing companies that cooperate with SUSE include Ericson, Intel, and Nokia Siemens. Following the rapid growth of the economy and technology from the developed nations, and to protect original enterprise manufacture products from the severe competition, the Original Equipment Manufacturer business must seek to involve the government to enact legislation that will help control their markets.

The Technology of Original Equipment Manufacturer Company

The technology has made it extremely easy and possible for plagiarized and counterfeit products to find their way into the country. By enacting relevant legislation, the government will be empowered to perform an inspection and even implement a new standard for products before they find their way into the market. One of the key objectives that the OEM business must achieve is linking extensive research to relevant software packages, thus letting its products be interfaced with the telecommunications services, such as mobile telephony.

For example, any product which may need some elements of wireless monitoring and operation can only be obtained by interfacing the product control system with telecommunications any manufacturing firm needs to have a patent on their products. In this case, any country that would be found manufacturing any product using their technology and involving the specifications, designs, packages, should be taken to the court and charged with an offense for stealing another company’s idea.

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In many manufacturing fields, customers become loyal to the products manufactured by specific companies, when they are sure that the quality of the products is high. They believe that, in most cases, companies will offer a warranty period: should the customer have problems with the product within the stipulated period, the firm would either repair it or give a brand new product, based on the terms and conditions of the warranty. If the product displays problems in a manner that was not guaranteed, the manufacturing firm will stock the spare parts that fit their products and helps avoid future damage. The OEM business must patent all relevant documentation, to avoid the risks of counterfeit products and reach their trusted customers. Yet, because these counterfeit products are of questionable quality, they will not reach the intended customers, and this can lead to a decrease in product demand.

Last but not least, it is recommended that the OEM business involves global innovation for the local markets to meet the new customers' demands. The second most essential factor is the geographic proximity to the market, which the firm should perceive as crucial; otherwise, it will produce a product that is beyond customers' affordability.

The labor sector must be experienced and qualified to handle the latest technologies in the OEM business since technologies will enhance products' quality assurance capabilities. Any manufacturing firm must ensure that it does not cause environmental degradation and health hazards (Wessner 22). Recent research has shown that some electromagnetic waves propagated at an unusually high frequency at a range of GigaHz have adverse negative effects on humans, especially the eardrum that can only tolerate 20 KHz. Hence, thorough research must be carried out to see how these negative effects on human health can be avoided.

Company Research Paper Conclusion

In conclusion, the fact that technologies have come with their benefits and negative effects cannot be ignored. While different manufacturing firms like OEM are busy holding seminars and conferences, others burn oil in the laboratory to do research and come up with the best methods to manufacture a product that will function for the customer's benefit, making his/her life easier. Equally important is the focus on the negative effects the same technology may bring to the environment. Otherwise, it would bring more harm advantage. The most brilliant plan for marketing any given product will be using the principles of Original Equipment Manufacturing for a better future.

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