||After long-term cooperation between an original equipment manufacturing (OEM) company and its downstream brand firms, the OEM producer’s production techniques and abilities may become well-developed and mature. If the OEM firm decides to expand his business by developing its own brand, its cooperation relationship with the brand customer will turn into the competition relationship.|
When this competition relationship comes to effect, OEM needs to take this kind of cooperative & competitive relationship between him and his brand customer into his strategy consideration, in order to reduce the awareness and the further back-attack behaviors from his brand customer, so that the market share of the OEM could have larger possibility of expanding.
This research is to discuss about the strategies used by one contact lenses company, how he uses the value chain analysis to set up his own core competition advantages, and how he further uses the dynamic competition analysis and local strategy differences analysis to avoid direct competition with his own brand customer, where he does not only keep good relationship with his brand customer, but also collects his own developing and growing energy for the future.
For the Taiwan enterprises focusing on the OEM manufacturing, the results from this research offer an important practical meaning.