A Study of Original Equipment Manufacturing in China: Current and Future Trends

This study examines issues faced by Chinese original equipment manufacturing firms (OEMs) and explores OEM future development. Qualitative data, consisting of responses from 32 managers in 16 OEMs, were content analyzed. Results reveal various threats to OEM development and numerous opportunities that have yet to be fully explored by OEMs, as well as OEMs strengths and strategic and managerial challenges. Further, this study interprets the future OEM trends, particularly the shift from an OEM business model to the original design manufacturer (ODM) and original brand manufacturer (OBM) models, as well as, the development of long-term relationships with their clients.