Business Case Studies, Industry Analysis Case Study, Original Design Manufacturers: Mobile Phone Industry's Changing Paradigms

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Case Title:

Original Design Manufacturers: Mobile Phone Industry's Changing Paradigms

Publication Year : 2004

Authors: Uma Shanker Shastry & T Phani Madhav

Industry: Telecommunications

Region:Global

Case Code: INA0018

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Since its evolution in the early 1990s, the mobile handset industry was marked with challenges such as globalisation, short product life cycles, short time-to-market, shrinking margins and customisation. The erstwhile approach of staying vertically integrated seemed obsolete, forcing the handset manufacturers to rely on 'outside' firms for design and manufacturing requirements. As a result, the original design manufacturers (ODM) found a place in the supply chain, thus changing the entire gamut of the handset business.

Pedagogical Objectives:

  • To discuss how ODMs have become a threat to the handset manufacturers. The case study can be anchored around Michael E Porter's Five Forces model.

Keywords : Mobile handset manufacturing, Original design manufacturers (ODM), Electronic manufacturing services, ODMs in Taiwan, Vertically integrated firms, Barriers of entry, Technology Management Case Study, Branding, Operator-specific handsets, Time-to-market, Mobile generations, Reference platforms, Nokia, Smartphones, Symbian, Sony Ericsson

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