From OEM Supplier To A Global Leading Company

Abstract

Firms in developing countries generally have lower technological and marketing capabilities compared to firms in developed countries. Joining OEM alliances can help firms with fewer capabilities to learn from their partners and then upgrade their technological capabilities. In this kind of scenario, learning firms in OEM alliances are usually from developing countries, and they play the role of suppliers; on the other hand, teaching firms are usually from developed countries and play the role of buyers. Although OEM alliances provide a platform for acquiring, transferring and creating knowledge, few suppliers can sufficiently upgrade their technological capabilities to reach a higher level and develop marketing capabilities in order to complete in the global market. Therefore, it is an important issue to know how an OEM supplier from developing countries can become a leading firm in the global market. In this study, we choose Giant Bicycles to explore this issue. We conduct a case study to explore the growth of Giant Bicycles from an OEM supplier to a leading company in the bicycle industry.