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The text discusses the differences between OEM and ODM in the context of product development. It clarifies that these terms are often used interchangeably, leading to confusion. A flow chart is presented to illustrate the relationships between a product company, OEM, and ODM. If a product idea is validated through market research, the company must determine if there is a budget available for research and development. If there is a budget, they can proceed to OEM for manufacturing. If not, they can opt for ODM to carry out the research and development and then manufacture the product.