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An original design manufacturer is a company that designs and manufactures a product, as specified, that is eventually
rebranded Rebranding is a marketing strategy Marketing strategy is a long-term, forward-looking approach and an overall game plan of any organization or any business with the fundamental goal of achieving a sustainable competitive advantage In business, ...
by another firm for sale. Such companies allow the firm that owns or licenses the
brand A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business Business is the activity of making one's living or making mon ...

brand
to produce products (either as a supplement or solely) without having to engage in the organization or running of a
factory A factory, manufacturing plant or a production plant is an Industry (manufacturing), industrial site, often a complex consisting of several buildings filled with Outline of industrial machinery, machinery, where workers manufacturing, manufactu ...

factory
. Original design manufacturers have grown in size in recent years and, , 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 A contract manufacturer (CM) is a manufacturer that contracts with a firm for components or products (in which case it is a turnkey supplier). It is a form of outsourcing Outsourcing is an agreement in which one company hires another company to b ...
. This model is especially used in international trade, where a local original design manufacturer 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 original design manufacturer are another cause for this product distribution model. original design manufacturer 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. This type of
business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a business name A trad ...

business
is part of "
outsourcing Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and assets from one firm A compan ...

outsourcing
". For example:
Compal Electronics Compal Electronics () is a Taiwanese original design manufacturer An original design manufacturer (ODM) is a company that designs and manufactures a product, as specified, that is eventually rebranded by another firm for sale. Such companies ...
makes
notebook computer A laptop or laptop computer is a small, portable personal computer File:Crystal Project computer.png, upright=0.9, An artist's depiction of a 2000s-era desktop-style personal computer, which includes a metal case with the computing compone ...
s and 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). , Taiwanese original design manufacturers made ninety-four percent of all notebook computers. Some companies such as Flex and Wistron are both original design manufacturers and providers of
Electronics manufacturing services Electronics Manufacturing Services (EMS) is a term used for companies that design, manufacture, test, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs). The concept is ...
. 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.


Intellectual property

Original design manufacturers create their own
intellectual property Intellectual property (IP) is a category of property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner o ...
and are very proactive in
patent A patent is a type of intellectual property Intellectual property (IP) is a category of property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depe ...

patent
ing it. Most of their patents are filed in the US, China, and Taiwan.


See also

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White label product A white-label product is a Product (business), product or service produced by one company (the production (economics), producer) that other companies (the marketing, marketers) rebranding, rebrand to make it appear as if they had made it. The name ...
* Product rebranding *
Electronics manufacturing services Electronics Manufacturing Services (EMS) is a term used for companies that design, manufacture, test, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs). The concept is ...
*
Original equipment manufacturer An original equipment manufacturer (OEM) is generally perceived as a company that produces parts and equipment that may be marketed by another manufacturer. However, the term is also used in several other ways, which causes ambiguity Amb ...
*
Contract manufacturer A contract manufacturer (CM) is a manufacturer that contracts with a firm for components or products (in which case it is a turnkey supplier). It is a form of outsourcing Outsourcing is an agreement in which one company hires another company to b ...


References

{{Major OEMs Brands Design companies