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{{short description|Company that manufactures a product, that is rebranded by another firm for sale}} |
{{short description|Company that manufactures a product, that is rebranded by another firm for sale}} |
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{{one source|date=June 2012}} |
{{one source|date=June 2012}} |
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An '''original design manufacturer''' is a company that designs and manufactures a product in contrast to "[[Original equipment manufacturer|OEM]]", which only manufactures a product. |
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An '''original design manufacturer''' ('''ODM''') is a company that designs and manufactures a product, as specified, that is eventually [[white label product|rebranded]] by another firm for sale. Such companies allow the firm that owns or licenses the [[brand]] to produce products (either all of this is stupidplement or solely) without having to engage in the organization or running of a [[factory]]. ODMs have grown in size in recent years and, {{as of | 2015 | lc = on}}, many have the scale to handle production in-house for the products that are branded by the buying firm. This is in contrast to a [[contract manufacturer]] (CM). |
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⚫ | Post-2016 Nokia phones ([[HMD Global|HMD]]) is an example of a firm which relies on original design manufacturers. In late 2019, it switched from relying on only one original design manufacturer to multiple original design manufacturers.<ref>{{Cite web|url=https://nokiapoweruser.com/despite-sales-decline-nokia-phones-business-saw-its-1st-positive-earnings-ebit-in-q4-2019/|title=Despite sales decline, Nokia phones business saw its 1st positive earnings (EBIT) in Q4 2019|date=31 March 2020}}</ref> |
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This model is especially used in international trade, where a local ODM is used to produce goods for a foreign company that sees some advantage in the transaction, such as low labor-inputs, transport links or proximity to markets. Innovative and/or patented technologies developed/owned by the ODM are another cause for this product distribution model. ODM models are also used where local ownership-laws possibly prohibit direct ownership of assets by foreigners, allowing a local firm to produce for a brand company - either for the domestic market or for export. |
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== Examples == |
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This type of [[business]] is part of "[[outsourcing]]". For example: [[Compal Electronics]] makes [[notebook computer]]s and [[computer display|monitors]], and operates as a mass producer for numerous brand companies, assisted by low labor-costs, low-cost transport, and the near-commodity nature of the physical inputs (in Compal's case, computer components). {{As of | 2011}}, Taiwanese ODMs made ninety-four percent of all notebook computers.<ref>{{cite web |
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* [[ZOTAC]], a Hong Kong graphics card manufacturer that has the own factories, is manufactures some special [[NVIDIA]] graphics cards, then rebrands and provides them to [[Lenovo]]. In this case, ZOTAC is ODM, Lenovo is OEM. |
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|url= http://www.prnewswire.com/news-releases/global-and-china-laptop-and-tablet-pc-industry-report-2011-2012-152524185.html |
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* [[Foxconn]] is one example of the ODM, help OEM such as [[Dell]], [[Lenovo]] to manufacture laptops. |
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|title= Global and China Laptop and Tablet PC Industry Report, 2011-2012 |access-date= 2012-09-10 |
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}}</ref>Some companies such as Flex and Wistron are both ODMs and providers of [[Electronics manufacturing services]]. |
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==Intellectual property== |
==Intellectual property== |
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Original design manufacturers create their own [[intellectual property]] and are very proactive in [[patent]]ing it. Most of their patents are filed in the US, China, and Taiwan. |
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== See also == |
== See also == |
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* [[White label product]] |
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* [[Original equipment manufacturer]] |
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* [[Rebranding#Product rebranding|Product rebranding]] |
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* [[Contract manufacturer]] |
* [[Contract manufacturer]] |
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[[Category:Brands]] |
[[Category:Brands]] |
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[[Category:Design companies]] |
[[Category:Design companies]] |
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{{econ-stub}} |
Latest revision as of 02:11, 3 January 2025
This article relies largely or entirely on a single source. (June 2012) |
An original design manufacturer is a company that designs and manufactures a product in contrast to "OEM", which only manufactures a product.
Post-2016 Nokia phones (HMD) is an example of a firm which relies on original design manufacturers. In late 2019, it switched from relying on only one original design manufacturer to multiple original design manufacturers.[1]
Examples
[edit]- ZOTAC, a Hong Kong graphics card manufacturer that has the own factories, is manufactures some special NVIDIA graphics cards, then rebrands and provides them to Lenovo. In this case, ZOTAC is ODM, Lenovo is OEM.
- Foxconn is one example of the ODM, help OEM such as Dell, Lenovo to manufacture laptops.
Intellectual property
[edit]Original design manufacturers create their own intellectual property and are very proactive in patenting it. Most of their patents are filed in the US, China, and Taiwan.