ODM in the field of PC market share and win big with good financial performance, which is the current difficult situation EMS in stark contrast. Although EMS companies in 2001 compared with the output value of 95.3 billion U.S. dollars, ODM's in the same year the output value of only 16% of EMS, but the latter has a more compelling level of profit. "Despite the relatively small revenue base ODM, but lower overall operating costs, resulting in better profit targets ... and the gross profit margin of 10% compared to EMS, ODM reached an unprecedented 20% to 25% level," U.S. GartnerDataquest ReikoTomasch analyst said.
Then call some of the industry, EMS ODM model to be adopted as soon as possible will have a way out. In fact, compared with the ODM manufacturers, EMS there are many obvious advantages: a means of funding flexor scale, global manufacturing, procurement, logistics and after-sales service, a wide range of products and manufacturing experience.
In the market is low, a large number of idle production capacity, scale advantages as disadvantages, but in the case of a change at the economic situation, EMS can be quickly revitalized. The other hand, ODM, its distinctive Chinese subject, the Greater China regional characteristics and narrow product lines, people feel it is not successful in the novel and unique business model, but the Taiwanese electronics manufacturers group together in the right place under the conditions of people encounter a godsend .
The outstanding advantage of this group is the incoming lower prices and lower overall operating costs. If the EMS and ODM to narrow the gap between the cost of distance, or in areas where the cost is not the determining factor, ODM may face strong resistance.
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