Uni-President Limited is a subordinate under one of the largest pudding stones in Taiwan, Uni-President Enterprise Corporation. UPEC is a taking maker in nutrient related merchandises in Taiwan with the sum of six sub-groups: proviso group, daily and beverage group, instant nutrient group, general nutrient group, consumer wellness group and logistic group ( Uni-president, 2007 ) No2. However, at the really first phases of Uni-President ( Thailand ) Limited, it emphasizes on drink merchandises with its purposes to offer the best and good quality of tea and fruit and vegetable juices under the trade name called “ Unif ” . Until late, the Company is spread outing their concern line by collaborating with the Chinese subordinate in Thailand, Yeuan Yeou ( Thailand ) Co. Ltd. , to developed roasted java and sell in Thai market under the trade name “ FINE CUP Coffee ” No3. Furthermore, in order to spread out its concern size, the Company besides engages in both exporting and OEM concerns. Under its OEM concern, it chiefly concentrates on bring forthing tea, java and juices. In 2011, 60 % of the Company ‘s entire operations are accountable to OEM concern and 40 % are the original trade name maker ( “ OBM ” ) ( Brandage, 2003 ) No15. In add-on, the Company is besides spread outing its concern to different country other than drinks. In 2011, the Company has imported the facial mask sheet from its affiliates to be sold in Thailand. No18.
There are many similarities between the Company and those illustrations given by Hobday. First, both OEM and the Company under its OBM concern, learn through cooperation. As mentioned by Hobday ( 2000 ) , OEM in his surveies is non the dealing where Sellerss and purchasers are engaged in, but it is a cooperation between them. The coaction can be done through assorted signifiers such as joint ventures, partnership and many more. The surveies of electronics companies in Korea shown that they learned important engineering and selling accomplishments from their spouses ( Hobday, 2000 ) . Furthermore, OEM ‘s spouse does non merely supply advanced engineering equipment, but it is besides assisted OEM in footings of its forces such as provide preparation to directors and applied scientists ( Hobday, 2000 ) . As mentioned above, that late Uni-President ( Thailand ) has cooperated with Yeuan Yeou, who are an expertness in the country of roasted java. Yeuan Yeou has invariably invested in new engineering development to heighten their invention capableness and to better the quality of its merchandises No4. By join forcesing with the house with high engineering, it is good to the Company in footings of the invention procedure. The Company can do a good usage of its spouse ‘s engineering to be more advanced, productive and eventually derive economic systems of graduated table. Harmonizing to Utterback and Abernathy ( 1975 ) No5, posited that advanced engineering plays an of import function in upgrading merchandise invention. Furthermore, Mcguckin, et Al. ( 1998 ) No6, found that there is a positive correlativity between high engineering and house ‘s productiveness rate. It merely means that those houses who adopt more advanced engineering will ensue in higher productiveness rate and will finally derive absolute advantage.
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Second, forces are considered as an of import constituent in order to upgrade its capablenesss for those companies in the surveies and Uni-President ( Thailand ) . The surveies on the consequence of SME ‘s soaking up capacity through cooperation was conducted by Muscio ( 2007 ) No.17, and it is found that to be able to get external cognition, human capital are really of import. As a consequence, they both invest to a great extent in developing plans as they conceive that in order to heighten house ‘s ability, the Company should hold workers with cognition and accomplishments. Furthermore, UPEC gestates that employees are the Company ‘s plus which hence have been puting more on developing its workers ( Uni-President, 2007 ) No9. The Company offers the preparation plans based on each employee ‘s educational background, capablenesss and professional accomplishments ( Uni-President, 2007 ) . Furthermore, the surveies shown that OEM larning capablenesss depend on the ability of an single soaking up capacity ( Hobday, 2000 ) . Harmonizing to Cohan and Levinthal ( 1990 ) No12, affirm that soaking up capacity can be acquired through preparation or anything that allows employees to larn. Consequently, the OEM has to put more on its people. Harmonizing to Caloghirou, et Al. ( 2004 ) No7, shown that house ‘s internal capableness, which include the ability to develop solution by utilizing its ain R & A ; D and geting cognition through preparation, will assist houses derive more advanced public presentation. Furthermore, Romijn and Albaladejo ( 2002 ) No8 mentioned that houses should engage adept human resources as they are important for the house to increase its invention capableness and preparation should be constantly provided to raise their cognition.
Third, the acquisition forms for both OEM and Uni-President ( Thailand ) start from the terminal of merchandise life rhythm, where they are concentrating on green goodss standardized merchandises and mass production. As mentioned by Hobday ( 2000 ) , by and large OEM moves from normal production procedure to more complex processs which so consequence in R & A ; D. As mentioned in the brief debut about Uni-President ( Thailand ) , the Company chiefly concentrates on the industry of two chief merchandises which are tea, fruits and vegetable juices. After the Company ‘s merchandises reach at the adulthood phase of the merchandise life rhythm, the Company so launches a new merchandise with the usage of PET hot fill engineering ( Uni-President ( Thailand ) Limited, 2012 ) No11. OEM and the Company learn to introduce new merchandises after addition technological cognition from their spouses and parents. Harmonizing to Jensen and Thursby ( 1986 ) No10, found that companies with less developed engineering is more likely to larn from those houses with high engineering.
On the other manus, there are besides differences between the illustrations specified by Hobday and Uni-President ( Thailand ) . First, even though they both have the same acquisition forms, where the invention are taking topographic point when merchandises are at the adulthood phases, they seemed to hold a different initial concern type when first enters the market. Uni-President ( Thailand ) established the Company as OBM concern to function both clients within and outside Thailand, whereas the electronics companies in Korea and Taiwan, they started its operations as OEM. Uni-President ( Thailand ) has focused on its ain trade name “ Unif ” and becomes one of the top tea and fruit and vegetable juice maker in Thailand. After become specialize in the production, the company hence expands its concern unit by prosecuting in OEM concern. However, the Company still offers to bring forth merely its nucleus merchandises viz. tea, juices and java ( Uni-President ( Thailand ) Limited, 2012 ) No13. The first ground that the Company initiates in OEM concern and stress on its nucleus merchandises, could be the fact that the Company wants to to the full use its bing engineering. Furthermore, by stressing on its nucleus merchandises, it allows the Company to derive economic systems of graduated tables. Harmonizing to Ghemawat ( 2007 ) No14, positions that by bring forthing standardised merchandises, it permits an organisation to accomplish economic systems of graduated table. The 2nd ground is that Uni-President ( Thailand ) is being able to bask a larger part of net incomes at no extra costs. As mentioned earlier, the Company will derive economic systems of graduated table from mass production. The cost of bring forthing one unit of end product is hence decreased and on top of that the Company did non hold to put any extra money in neither equipment nor engineering as it use its bing engineering.
Furthermore, they besides differ in respects of their purposes in geting new engineering. Although they both intend to better merchandise quality, yet Uni-President ( Thailand ) ‘s chief desires to capture more market portion. As a consequence, the Company is required to be more advanced. While OEM in Hobday ‘s surveies, they were forced to better its qualities at lower monetary value as possible, since the bargaining power of purchasers is high. Harmonizing to Hobday ( 2000 ) , during 1980s and 1990s, Korean electronics companies ‘ export figures has deeply relied on OEM concern. As a effect, they can easy exchange to other OEMs if the merchandise quality and monetary values do non run into their outlooks. As stated by Jean, et Al. ( 2010 ) No15, even though MNCs have to reassign their engineering and cognition when they employ OEM to bring forth their merchandises, they are more likely to hold high bargaining power over their OEM spouses. Furthermore, such bargaining power tends to be in favour of MNCs instead than OEM confederates. Furthermore, high dickering power of purchasers could besides take to “ OEM trap ” , where OEM can non travel toward either OIM or OBM.
In add-on, OEM noted in Hobday ‘s paper ( 2000 ) tends to put in engineering for the intent of catching up so that they can vie with other successful concerns instead than be the developer of new engineering. On the other manus, Uni-President ( Thailand ) is more likely to be the leader of engineering frontier, as the Company is the first drink maker in Thailand, who introduce the engineering of Polyethylene terephthalate ( “ PET ” ) bottles for both hot-filled drinks and cold-filled drinks ( Brandage, 2003 ) No15. For being the first company who introduces this engineering into the market, the Company additions foremost mover advantage. Harmonizing to Ketchen, et Al. ( 2004 ) No16, conceived that unlike being the first mover in service country, those makers, who gain the benefit of being the first mover advantages are in all likeliness to derive from both net income and market portion.
As pointed out above that the Company is merely concentrated on bring forthing tea, fruit and vegetable juice and java to function Thai market and there are many rivals in the drink industry. Consequently, the exchanging cost to another trade name is comparatively high, as the clients have more assortment of trade name picks to take from. Therefore, the Company should be more originative and advanced by puting more in Research and Development ( “ R & A ; D ” ) to keep its market portions and to profit from first mover advantage. R & A ; D is hence important for the Company in order to develop new thoughts and introduces new merchandises to the market. Harmonizing to Ulku ( 2007 ) No.19, posits that there is a positive correlativity between the investing in R & A ; D and the rate of invention, which so result in the increased in degree of end product and new merchandise development. Furthermore, by being able to present new merchandises into the market, the Company can capture most portion of the market. As mentioned by Deeds and Hill ( 1996 ) No20, the faster the Company develops new merchandise to the market, the more likely that the Company will accomplish the first mover advantages. As mentioned that, Uni-President ( Thailand ) technological capablenesss chiefly coming from its spouses and parents. As a consequence, to increase the rate of new merchandise development, Uni-President ( Thailand ) should see of set up its ain R & A ; D section in Thailand or joint research with universities or other companies. Harmonizing to Numprasertchai and Igel ( 2005 ) No21, cooperation with the universities normally allows houses to oversee and larn the new engineering innovate by the universities. It was one time said by Bessant, et Al. ( 2012 ) No22, that bunch, joint activities between companies, are considered as a really of import component in invention, since there is a flow of information, engineering, accomplishment and resources.
By comparing the illustrations given by Hobday in his surveies on East Asiatic invention systems and Uni-President ( Thailand ) , there are both similarities and differences. The similarities are that they both learn through coaction, spent to a great extent on its people and eventually have the same acquisition form. On the other manus, there are differences in regard of the nature of their initial concerns and intent of geting new engineering. Yet, they both are similar and different in some ways, the Company should continuously heighten its engineering and invention capablenesss and there are several ways to accomplish that: cooperation with universities, coaction with other houses and develop its ain R & A ; D section.