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OEM - Companies manufacture products based on the product design and

specifications provided by their clients.


- Products are sold under the company name of the customer.

ODM - The manufacturer researches and develops product designs and


specifications based on the product idea brief provided by the
client.
- Products are also sold under the company name of the client.

OBM - The producer is responsible for designing, producing, and selling


products under their own brand name.
Differentiate the OEM, ODM, and OBM?

Give an example for each one?


OEM: Foxconn is an OEM in the electronics industry. They manufacture products
such as iPhones, iPads, and other electronic devices for companies like Apple
based on designs that Apple provides.
ODM: Flextronics is an ODM that offers design and manufacturing services for
various products. It collaborates with many corporations like Dell, HP, Sony, etc.
OBM: Samsung controls all processes from product design, manufacturing, and
distribution of products from phones to TVs under the Samsung brand.

In Vietnam, what kind of the business (ODM, OEM or OBM) is the most
popular one?
I think OEM is the most popular business in Vietnam for several reasons. Firstly,
everyday items such as clothes, bags, tissues, and household items all have the
business logo printed on them. Finally, the products are manufactured by reputable
and experienced OEM manufacturers, ensuring they meet high quality criteria. In
addition, the product origin is provided in detail to create trust for customers and
help users identify the company's own brand and products.

2.2 Differentiate "b" between Buy-back contracts and Quantity-flexibility


contracts? b:giá manufacturer mua lại
 Buy back contract: Partial refund for all unsold goods
 Quantity flexibility: Full refund for a limited number of unsold goods
2.3:
- Explain the meaning of "w" and "revenue" in Revenue-sharing contracts.
 W means the wholesale price, which is convinced to be reduced by the buyer
to boost their buying motivation. On the other hand, decreasing wholesale
prices reduces the supplier's profit.
 Revenue means the money that retailers can earn from selling products.
- What is the relationship between "w" and "revenue"? w: wholesale price
 Revenue means when the buyer has a discount on the wholesale price (w),
they will share a portion of the goods sold revenue with the supplier.
2.4:
What are the differences between Rebates and Discounts?
With a discount, the customer does not have the option to receive the cash and the
seller is actually taking a loss.
With a rebate, the amount is given to the customer to be used as a part of the sale
or to take as cash. The seller does not take a loss.

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