In the smiling curve theory, many enterprises in Taiwan product merchandise by OEM (Original Equipment Manufacturing) model become the one which has lowest additional value. It seems that there is no future of Taiwan's OEM industry. It suggests that the enterprises in Taiwan should make the transition to the research or own brands. But, Can the smiling curve theory be really suitable for the industries of OEM unconditionally? ODM (Own Designing and Manufacturing) should subdivide into two models, passive ODM and active ODM. Passive ODM is receiving requirements of brand owners and then designs detail functions of product and processes of manufacture. Active ODM is made a product of open model and provides it for brand owners. When the product of open model is accepted by customer, the manufacturer can deliver the product with little lead time. In Passive ODM model, the brand owner should take the risk of marketing. But in active ODM model, the manufacturer takes marketing risk, too. It is more difficult for manufacturer to know the market rather than to manufacture. By using simulation gets two results: 1.When the manufacturer doesn't know the market, it is high risk to make the transition to active ODM or OBM (Own Branding and Manufacturing). 2.It is more safety to make the transition to passive ODM and the manufacturer still can shorten the cycle of new product development, get more orders and improve the ability of the enterprise.

President Chain Store Corp. (PCSC), the leading chain store company in Taiwan, utilizing the successful experience to develop their logistic business, thus has been built up the strong subsidiary logistic group of Uni-President nowadays. PCSC structure the integrated production line, which enables each of the business unit to focus on the competitive advantage and utilize the inter-group resources successfully. This integrated structure also enhances the core ability of every business unit which lifts the group from retail industry to the brand with high value-adding brand marketing all over the world. The purpose of this research, using the methodology of Smiling Curve, is to find out the connection between the acquisition of crucial re source and the build-up of crucial process, as well as the impact of benefit and efficiency brought to the group. This research try to use the concept of ¡§ the acquisition of crucial resource¡¨, ¡§ the efficiency of resource utilization¡¨ and the ¡§the build-up of crucial process¡¨ to probe the connection among the best timing for entering new market, the process of acquiring the resource and the timing of acquisition. Furthermore, this research would like to probe how to acquire the crucial resource and build up crucial process, given that under the circumstance of the positive startup of both resource and market. The major findings from this research with the methodology of Smiling Curve for the explanation of integrated strategy and effectiveness come to three points: the 1st is the vertical integration shortens the sales channels, the shorter of the channel, the higher of the value-adding will be; the 2nd is the horizontal integration enables each division to concentrate on the core business to accelerate the leading advantage; the 3rd is the well implementation of related diversification strategies to adopt the overseas brands know-how and corporate-owned trained specificity of human capital to achieve the target of lifting the operation efficiency. This synergy justify the result of aiming at higher value-adding activities, such customers-oriented marketing and service, the value chain relocation, move PCSC to the Y-axis as increasing value-added brand.