Galanz china

What are the differences between OEM/ODM versus OBM in terms of production,design,marketing,distribution and customer service?

Both the terms of ODM and OEM are related to the manufacturing industry. ODM stands for

Original Design Manufacturer, and OEM refers to Original Equipment manufacturer. It is quite

confusing to see the difference between the two, as they are very similar. OEM refers to a company

or a firm that is responsible for designing and building a product in accordance with its own

specifications, and then selling the product to another company or firm, which is responsible for its

distribution. The one company produces products on behalf of another company, after which the

purchasing company markets the product under it own brand name.An advantage of OEM is that

purchasers can acquire products without setting up a factory. The disadvantage is that customer can

easily purchase illegal copies of software, which is not advisable (Difference Between,2016).

An ODM company or firm, on the other hand, is responsible for designing and building a product as

per another company’s specifications. The advantage of ODM is that the company do not have to

spend time designing the product, this allow the company to spend more time on it core operations

as well as benefiting from the skills and experience of the manufacturer. The disadvantages are that

the customer will not receiving a unique product, which mean there may be competing products on

the market exactly the same.

OBM is normally a company that sells an entire product made by a second company or unclosing a

component from second company sources as its own branded product. Selling the product of the

second company under its own brand just adds a virtual extrinsic value to the product. OBM offer a

variety of advantages compared to private label,generic, or store brand items, including product

availability: brand name items are normally easy to find and perceived quality: brand name items

are often seen as having higher quality than comparable private label items. The disadvantage is the

items is cost because brand name items often cost more than private label, generic or store brand

items (Intrepid,2016).

OEM and ODM versus OBM in overseas market for Galanz China is consumers were not familiar

with Galanz as a brand of microwave ovens and strategic partnership with multinational companies

such as K-mart and Walmart were confined to OEM deals.Moreover, Liang junior began to offer

Galant-Branded microwave ovens to superstores and technical support from Fillony to help Galanz

set up R&D centres overseas to showcase Galanz branded microwave ovens in the country.Lastly,

its ratio of Galanz OBM and OEM microwave ovens rose from 1:9 to 3:7 from 1997 to 2003

(BenefitOf,2016).

Reference:

ODM.(2016) Difference Between ODM and OEM.Available at:http://www.differencebetween.net/ miscellaneous/difference-between-odm-and-oem/ [Accessed on 6 March 2017]

Advantages.(2016) Advantages and Disadvantages of ODM and OEM.Available at:http:// intrepidsourcing.com/trade-wiki/original-design-manufacturer-odm-introduction-pros-cons/ [Accessed on 7 March 2017]

OEM.(2016) Benefits Of OEM.Available at:http://benefitof.net/benefits-of-oem/ [Accessed on 7 March 2017]