Tal - Jcpenny Case
Case Name: TAL – J.C. Penney Case
Problem Statement
Hong Kong based apparel manufacture, TAL, faced many strategic challenges and wanted to learn how leverage the Company’s information management system to strategically reposition the company with a view to creating sustainable competitive advantage in the long run.
Background
TAL Group
History
* Started 1947, by Lee family – first spinning mill in Hong Kong for producing yarn * 1962: mills banded together to form Textile Alliance Limited (TAL) * 1983: subsidiary Textile Apparel Limited - garment division * 2001: TAL Global Alliance Limited (TAG) – (global sales and marketing business) to adjust to the increasing scale of international business * One of the Largest Garment Manufactures in the world * Headquarters in Hong Kong
Conditions
* 2004 china’s accession into the WTO meant regulatory changes * No textile quotas * Pressures to manufacturers and suppliers on a global basis
Culture
* TAL facing external changes has looked inward for improvement and expansion of the Company’s Information Technology System * The company is focused on building retailer partnerships * Wants to strengthen its position as a dominant apparel supplier
Strengths
0 Has been around for over years and still is a strong company 1 Head quarters in Hong-Kong 2 Close relationship with US retailers 3 R & D department 4 VMI and MTM
Weaknesses
5 Over capacity – Cut costs 6 Far away from the US (shipping costs could be high)
Global Apparel Industry
Customers
* Department stores = JC Penney * Specialty clothing stores = Brooks Brothers, Liz Claiborne, Polo Ralph Lauren and Banana Republic * Catalogue retailers = Lands’ End and L.L. Bean * Major Retailers that are looking for cheaper labor and low cost manufacturing while still maintaining quality
Traditional Competitors * With the globalization of apparel production, competition
Problem Statement
Hong Kong based apparel manufacture, TAL, faced many strategic challenges and wanted to learn how leverage the Company’s information management system to strategically reposition the company with a view to creating sustainable competitive advantage in the long run.
Background
TAL Group
History
* Started 1947, by Lee family – first spinning mill in Hong Kong for producing yarn * 1962: mills banded together to form Textile Alliance Limited (TAL) * 1983: subsidiary Textile Apparel Limited - garment division * 2001: TAL Global Alliance Limited (TAG) – (global sales and marketing business) to adjust to the increasing scale of international business * One of the Largest Garment Manufactures in the world * Headquarters in Hong Kong
Conditions
* 2004 china’s accession into the WTO meant regulatory changes * No textile quotas * Pressures to manufacturers and suppliers on a global basis
Culture
* TAL facing external changes has looked inward for improvement and expansion of the Company’s Information Technology System * The company is focused on building retailer partnerships * Wants to strengthen its position as a dominant apparel supplier
Strengths
0 Has been around for over years and still is a strong company 1 Head quarters in Hong-Kong 2 Close relationship with US retailers 3 R & D department 4 VMI and MTM
Weaknesses
5 Over capacity – Cut costs 6 Far away from the US (shipping costs could be high)
Global Apparel Industry
Customers
* Department stores = JC Penney * Specialty clothing stores = Brooks Brothers, Liz Claiborne, Polo Ralph Lauren and Banana Republic * Catalogue retailers = Lands’ End and L.L. Bean * Major Retailers that are looking for cheaper labor and low cost manufacturing while still maintaining quality
Traditional Competitors * With the globalization of apparel production, competition