Own Brand Manufacturing and Contract Manufacturing



Own Brand Manufacturing and Contract Manufacturing

Own Brand Manufacturing

A key feature of this model is that the ODM owns and / or designs in-house products that bear the mark of the client company. Own Brand Manufacturing (OBM) means is concept under which a company manufactures a product that bear the mark of another company in its sale. ODM is a sense of a different subcontractor. Manufacturing own brand means that you do and market products for you and usually only for you. Another option may be "original design manufacturing" or a combination. OBMM means that the specifications are provided to other brand and product for them under their brand name.

OBM companies can even make the same product for different brands, and even produce personalized products. It is an increasingly common phenomenon in all areas of production, mainly in industrial equipment, textile, computer, etc. Under the OBM there is a concept of an original equipment manufacturer, or OEM which is a company that makes products that are then purchased by another company and sold under the brand name of the acquiring company (Williams, 1995). Therefore, it can also be applied to the entire process of outsourcing manufacturing the products of a company. This helps the companies to produce its equipment or property, and awarded to third parties. These are manufactured by the colours, shapes, logos, etc.

Today many companies like Dell, HP, IBM, Lenovo, Acer, Toshiba, Cisco, sometimes used to large OEMs to reduce costs and deliver their competitive product to its customers, including factories in Latin America. A famous example of OBM is Compaq Electronics, which manufactures laptops and monitors, and operates as mass producer for many branded companies, assisted by a low cost of labour, reduced transportation costs, and Facility physical input of raw material. The research firm iSuppli marketing published a report in 2006 showing that 82.6% of laptops are made in Taiwan by OEM (Original Equipment Manufacturer) and OBM Taiwan.

The growing importance of assisted seal products with the brand has led to the implementation of the mark on products otherwise anonymous. The production sharing between a company or manufacturer producing and selling a brand owner who has no special interest to produce the product itself has no real added value for the customer. Therefore, the product can be sold on the market, with or without the brand, however, the owner of the brand intends to increase sales of the same quality as the comparative competitive advantage of brand.

In most cases an Original equipment manufacturer (OEM) version of software is sold only in combination with some hardware. The software is focused on a business model business-to-business. Two companies team up to offer users a more complete final product. Therefore, one must understand the OEM business model in this context. An end user will see the product purchased has a higher value. This model is particularly used in international trade, where a local ODM is used to manufacture products for a foreign company that sees ...