Unraveling the Threads of Industry and Enterprise

Posted on July 25, 2023  •  3 minutes  • 509 words

In the grand theater of global economics, industries and enterprises play pivotal roles, each contributing unique performances that collectively shape the narrative of our socio-economic reality.

Can be Categorized into the Following

Infrastructure: Industries that provide the most fundamental socio-economic infrastructure for the country are characterized by their foundational nature.

💡 What are they?

• Electricity, water conservancy, metals, chemical industry
• Transportation, construction, environmental protection, recycling
• Agricultural cultivation …

Infrastructure further extending downwards into ..

Manufacturing, there are OEMs, ODMs, and OBMs.

• OEM (Original Equipment Manufacturer): This refers to companies that produce equipment or components that are then used in the products of another company, which sells the finished item to users. For example, a company like Intel could supply processors to Dell, where Dell is the OEM.

• ODM (Original Design Manufacturer): These are companies that design and manufacture a product, as specified, which is eventually rebranded by another firm for sale. ODMs have grown in size in recent years and many are now sufficient in size to handle production for multiple clients, often providing a large portion of overall production.

• OBM (Original Brand Manufacturer): An OBM is a company that sells an entire product made by a second company or includes a component from a second company but sold under the brand of the company. The second company is referred to as a supplier. The OBM has the rights to the original brand. The product is designed by the OBM, and the design belongs to the OBM.

Some manufacturing chains are long, such as mobile phones, while others are short (in this segment, the length of the industry chains varies)

… further extending downwards to …

Product-based industries, for example, some companies do not manufacture directly but entrust others to do it for them. These companies manage the combination of hardware and software (specializing in design), but the brand is always their own. This is a product-based company.

• Apple Inc.: Apple is a classic example of a product-based company. They design and market a variety of tech products, including the iPhone, iPad, and Mac computers. While they maintain strict control over the design and development process, the actual manufacturing is often outsourced to companies like Foxconn.

• Nike: Nike is a global brand known for its athletic footwear and apparel. While the company is heavily involved in the design and marketing of its products, the manufacturing process is typically outsourced to factories around the world.

… The products of various companies need to be sold downstream, and sales require a medium. Thus, media-based companies have emerged, resulting in a super-large industry –

the Media-based industry. There are online media: Amazon, Alibaba, Shopify, and offline media: various chain franchise supermarkets, shopping malls, etc., responsible for domestic sales and foreign trade.

… These industries ultimately flow to the so-called …

Terminal Consumer Service Industry or consumer industry (for example, medical facilities and drugs eventually reach hospitals, and chips eventually reach consumer electronics companies) to provide services. At the same time, there is a large industry called enterprise services that serves upstream companies.