Efficiency and Value Creation: Production Strategies in OBM

Young Won Park (), Geon-Cheol Shin () and Kyung-Soo Lee ()
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Young Won Park: Saitama University
Geon-Cheol Shin: aSSIST University
Kyung-Soo Lee: COSMAX

Chapter Chapter 6 in Original Brand Manufacturing Business Model, 2025, pp 91-111 from Springer

Abstract: Abstract This chapter explores how production strategies in Original Brand Manufacturing (OBM) have evolved from cost-centric operations under OEM models to become strategic levers for brand value, innovation, and sustainability. In the OBM paradigm, production is no longer a backstage function—it is central to how firms create differentiated consumer experiences, integrate R&D and marketing, and deliver on brand promises. Drawing on interdisciplinary literature and the case of COSMAX, this chapter illustrates how agility, digitalization, and purpose-driven operations are transforming manufacturing into a core brand capability. Key themes include the shift from volume to variety, quality-speed integration, digitalized smart factories, and sustainability as a design imperative. COSMAX exemplifies this transition through its global, flexible, and automated production network, enabling both mass and niche OBM brands to thrive. Its investments in AI, robotics, and eco-friendly processes show how manufacturing can drive innovation and resilience. Furthermore, production emerges as a platform for dynamic capabilities—enabling co-creation, institutional learning, and rapid adaptation to shifting market conditions. As OBM firms aim to scale purposefully, production must be reimagined not just as infrastructure, but as the foundation of brand identity and competitive differentiation in a globalized, digital-first, and sustainability-conscious economy.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-95-0253-0_6

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DOI: 10.1007/978-981-95-0253-0_6

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