Oroton is an Australian owned company making luxury goods, from bags to clothing. This study first goes through a resource and capabilities analysis for the Oroton Company. We follow this with an external environment analysis and fashion industry analysis in Oroton’s host market, namely, China. In addition, this study is an analysis on their plan to enter the China luxury goods industry, through setup of a Wholly Owned Subsidiary with a view to using a “Focus” and “Differentiation” strategies. Last but not least, the recommendations are provided for Oroton in terms of how the company can enter into China’s market and further develop its international business efficiently.…
A single trip to Wal-Mart can show the power of China 's economy. The tags on most of the retail items in the store have the familiar "Made in China" stamp. By simply watching the news over the past decade, Americans know that the reason the U.S. imports so much of its merchandise from China is because Chinese companies can pay their workers far less to manufacture goods than American companies can.…
In the United States, consumers are constantly purchasing items from foreign countries without acknowledging where, how, and when it is produced. In my reading, the book “Travels of a t-shirt in the global economy: An economist examines the markets, power and politics of world trade” author Pietra Rivoli explains many difficulties in the production of her t-shirt. The production has conflicts such as the global tensions from states, markets and social actors. I argue exports from China that are imported into the United States have a beneficial effect on both economies.…
While business that remain local competitors are limited to the scope of their sales and revenue. An organization that can successfully expand to a global market creates a broad open market which can more effectively communicate with partners and customers alike. This makes the process of supply and demand, distribution, and local producers and sellers much easier to manage for an organization. This is especially true for an organization who expands globally in areas they already may import/sell products. By having a physical location in these regions they can avoid high importing/exporting tariffs and even build brand recognition and foster a strong economy. (2, Conclusion) Therefore globalization creates and fosters open markets and strengthens brand names. A company can greatly increase not only their revenue with globalization, but also the effectiveness of their brand on a global…
Moving on the value chain to manufacturing process in China, the fact that U.S. T-Shirt retailers’ attempt to provide more value to their customers by offering less and less expensive goods, has introduced speed bumps in the economics race for the bottom. With integration of globalization and technology, communication and transportation, could make it happen. Players in apparel industry have looked for ways to reduce costs by outsourcing their productions outside the US. As a result, some groups think that the phenomenon has led to domestic unemployment. But in fact, globalization is not the only source of the problem; it is the advancement of production technology. Productivity has been higher while using less labor force.…
What makes the article being of value for the present work is that the decision of foreign manufacturing is a result of processes management. Despite common point of view, production in China or Taiwan is not only a question of low labour costs causing extreme profits, in Apple’s case production in Asia was the only solution.…
Karami, M., Siahpoush, M. and Olfati, O. 2013. ‘How Consumers Perceive the Products Made in China: A Case Study of Iran’s Apparel Market’. International Journal of China Marketing. 3(2): 118-135.…
China is an emerging market, with nearly half of the countries around the globe trying to set foot in the Chinese Market. According to a recent Global Monitor survey, the Chinese consumers appear to value the selection and variety of clothing items more than their prices. After a successful launch in Spain, Argos is now planning to expand its business to China. This paper examines the various issues which Argos must take under consideration while planning to launch its very first retail outlet in China.…
U.S.-China economic ties have expanded substantially over the past three decades. Total U.S.China trade rose from $5 billion in 1980 to $409 billion in 2008. Although commercial ties were sharply affected by the global economic crisis in 2009 (total U.S. trade with China dropped by 10.5% to $366 billion), China remained the second-largest U.S. trading partner, its third-largest export market, and its biggest source of imports. With a large population and a rapidly expanding economy, China is a huge market for U.S. exporters and investors. However, bilateral economic relations have become strained over a number of issues, including large U.S. annual trade deficits with China (the deficit was $266 billion in 2008, but fell to $227 billion in 2009), China’s mixed record on implementing its World Trade Organization (WTO) commitments, its resistance to international calls to reform its pegged (and undervalued) currency system, its relatively poor record on enforcing intellectual property rights (IPR), and its extensive use of industrial policies and discriminatory government procurement policies (such as proposed “indigenous innovation” certification regulations) to promote domestic Chinese firms over foreign companies. Some observers contend that the business climate in China has worsened over the past few years. Further complicating the U.S.-China bilateral relationship is the growing level of economic integration and mutual commercial dependency between to two economies. U.S. economic ties with China benefit many U.S. groups, such as consumers (through low-cost imports from China) and certain business interests (such as firms who use China as a center for their supply chain operations to assemble…
Global apparel chain are characterized by unique combinations of high value research, design that they have been pursued for quite some time. Almost more than 30% percent of world production apparel was exported. Lots of company making their manufacturing production on the developing country, because of some factor of the cheap labor intensive. Some country are keen to supply their product to the country that has a very low quote restrictions like China supply their product to Japan where there are no quota restrictions. Some country also do like combining all of the resources part from other country and combine it, like in making a jacket, the zipper come from Japan, the shell from Korea, the jacket filling from Japan, and the label, and other trim are from Hong Kong.…
Many products we use today are made in China. Trade between Australia and China has heightened in the last couple of years. China has one of the world’s largest economies. It has an increasing role in shaping the world economy, accounting for a third of the increase in the world’s gross domestic product and imports for the period 2000 to 2003 (The Economist 2004). It is also home to a population of 1.3 billion inhabitants, consuming a variety of goods from food items to luxury commodities, toys, clothing, gifts, most car parts and many more things Australia benefits from. For non-agricultural goods, Australian import tariffs are generally low. The most notable exceptions are on motor vehicles and textiles, clothing and footwear imports. However, Australia has undertaken to unilaterally reduce these tariffs over time, with tariffs on motor vehicles, textiles and footwear scheduled to decline to 5 per cent by 2010, while tariffs on clothing will be reduced to 10 per cent by 2010 and to 5 per cent by 2015. Product safety and quality are serious matters to australia, that must be addressed quickly and transparently to maintain consumer confidence. It is important to pursue a fact-based assessment of the issue to ensure accurate understanding of the problems and address them with the appropriate solutions. Most of these problems include, the safety of the workers in china and the heatlh issues raised about the cheap chinese goods that come from china to australia. .…
we can ues a particular example to support this point .UGG boots made by Australia ,so it has been very popular during winter . almost every girl owns apair. we can get it for $100. however there is a huge bag in china .You sould pay 2000RMB (300AUD) for a pair really UGG boots in China. But so many girls would like buy it in China .why? The reason is self concept . UGG ues differen color and different style for boots in the image .it is a good way to reveal its image to girls . they are target coustomer .but in the Australia . we can wear it in the winter .but in china ,there are no need to wear it in some city where is not so cold in winter .so this is consumer self concept.lastly , in china , since every body has been buying them ,every body want to own one pair . when the sales increase .it showns that people agree the value of UGG,so they were ignore price for it .so high demand of the boots maintained the value beyondits cost . so as this aspect , there is huge opportunity for Australia export.…
Shanzhai (“Bandit”) Mobile Phone Companies: The Guerrilla Warfare of Product development and Supply Chain Management. By: John Rediehs, Malini Seelan, Rama Paidi 1 Table of Contents Introduction Page. 2 Case Analysis Page. 2 Suggestion/Implementations Page. 4 Conclusion Page. 5 References Page. 6 2 Introduction Shanzhai (“Bandit Cell Phone”) is shaping the entire thought process of development, marketing, and technology in the largest cell phone market in the world. A market that has long been dominated by the corporate players like Nokia, Samsung, and Sony now face a tenacious domestic threat defined by a grassroots culture spreading within China. Shanzhai companies as they are referred to in this case study have gained a steady market share in the recent years on the big corporate players. By understanding their domestic market and their contract manufacturing history with the big players in the market, Shanzhai companies arose out of the culture to revolutionize the Chinese cell phone market. In this paper we will be analyzing several steps in the Shanzhai manufacturing process and business model. By highlighting several interesting and unique Shanzhai business strategies, we hope to gain the insight to apply these strategies elsewhere in the business world. Case Analysis Shanzhai companies are uniquely Chinese; they are a blended subculture of shameless counterfeiting, ruthless competition and social beliefs. Shanzhai companies tend to bend the rules or flat out ignore them in a pursuit to maximize profit, experimentation, and optimal output. In translation Shanzhai companies operate with surprising efficiency and at extremely low costs. With this ability to cut costs and offer similar products based off the corporate brands at a lower price, the Chinese market was prime for growth. Currently, the Chinese market has over 900 Million mobile phones users with over a billion individuals for market growth. Due to the geographic and socioeconomic situations in…
cer Inc. is a leading marketer of notebook and desktop PCs. The company, which posted sales of $21.3 billion in 2010, also produces other products such as the new Iconia tablet. As Taiwan gained a reputation as the “tech workshop of the world,” Acer became Taiwan’s number-one exporter. Stan Shih, the company’s founder, built Acer into one of Taiwan’s most successful companies. Despite Acer’s success, the company had trouble breaking into the American market. In the late 1990s, Shih noted, “In the United States and Europe, we are relatively weak. The local players there are very strong. The problem is that we don’t have good experience in marketing in those regions. It’s a people issue, not a product issue.” Shih discovered that building enterprise brands is easier than building brands in the business-to-consumer market. “Business-to-consumer brands have more value but also face more challenges. People involved in businessto-business are usually rational, but consumers in business-to-consumer are usually emotional in choosing their brands,” he said. In 2000, Shih refocused Acer’s distribution and marketing on the vast, fast-growing China market. He envisioned establishing a solid market base in greater China (mainland China, Taiwan, and Hong Kong) and expanding from there to the rest of the world. “The market in China is very critical for Taiwanese companies to become global companies,” Shih said. “Innovation is not necessarily related to whether you are smart or not. The reality is that if you don’t have a big market it’s not easy to innovate because the return on investment is too low. The potential of China is not just big markets and low-cost labor. Actually, it’s also for highly educated engineers or professionals.” Shih understood the need for Acer to develop a strong brand image in China. “The challenge for this region is really the poor image that is…
Ningchuan Jiang Visiting Professor. FedEx Global Education Center. UNC. Chapel Hill. NC 27599, USA Depart. Economics and Management, Chengdu Textile College, Chengdu 611731, China Abstract It has been more than five years for China’s entry into WTO. With the decrease of regulations of tariff barrier and non-tariff barrier, the export market of Chinese textile products has been expanded and the market shares have been increased, which arouses great attention of many countries in the world. Some countries increase the limit of import. What should be noticed is the more covert and more agile trade barrier, which becomes the biggest barrier of export of our country’s textile products. This article reviews the concept and content of technical barriers to trade, concludes the condition of technical barriers to trade in the textile product field of America, Europe and Japan, analyzes the reasons of technical barriers to trade combining with Chinese textile product export condition and the effect from technical barriers to trade and finally discusses the measures of dealing with technical barriers to trade and existing problems of Chinese textile product export. Keywords: Technical Barriers to Trade, China, Textile Product Trade, Effect China is the biggest country producing and exporting textile products. The textile industry is China’s traditional predominant industry and pillar industry to gain export profit for the country. Since the reform and opening to the outside of the world, especially after entry into WTO, facing quickly increasing domestic and foreign demand and medium & low level product market, Chinese textile industry has developed greatly. The textile industry is an important industry of Chinese national economy, which plays a very important role in solving employment and expanding export. According to the data of National…