Original Equipment Manufacturer (OEM)

Posted in Marketing and Strategy Terms, Total Reads: 726
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Definition: Original Equipment Manufacturer (OEM)

OEM is a company or a manufacturing unit whose products are used as part of different company's manufactured goods. e.g. Flextronics and Apple. The OEM normally works closely with the corporation that sells the main product. The products are produced as per the contract with the main company.

Example

Dell makes PCs but uses processor from Intel ( an OEM), graphics from ATI ( another OEM), WiFi from broadcom (OEM). 

There can be multiple examples of such OEMs who make components which are part of another complete product.

Ingredient Marketing is another interesting concept which OEMs are using e.g. Intel Inside campaign is a typical example of OEM promoting itself through branding. 


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