The Strategic Analysis of Global Setting in Apparel Manufacturing industry for Taiwan Companies

• Main Authors: Kuan-Hua Huang, 黃冠華
• Other Authors: 陳俊忠
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/74447577131260933809

碩士 === 國立臺灣大學 === 臺大-復旦EMBA境外專班 === 103 === The Apparel Manufacturing industry in Taiwan has gone through many transformations since 1960. This thesis takes New Wide Group as an example to analyze the history of Apparel Manufacturing industry in Taiwan from the glorious days of Taiwan manufacturing to other countries investment because of the higher cost in Taiwan. All the factors lead to a strategic global setting of manufacturing for apparel manufacturers. The growing pattern of New Wide Group is a perfect case to demonstrate the decision making process of manufacturing locations following by the overall environmental and economic factors. On the other hand, this thesis also introduces the terms of tariff preference which plays a key role for investors to make investment. Since the target markets for apparel manufacturers in Taiwan are mainly the major brands in Europe and America, the terms of tariff between the locations of manufacturing and importing countries are the main factors to determine the cost advantages. In addition, the hottest production areas would be evaluated from laws for the industry, the fundamental infrastructure, the quality and quantity of labors to the cultures. In the dynamic investment environment, the thesis also includes the competitors’ strategies and global setting and analyzes what their investment decisions are. In the end of the thesis, the concept of Value Net is introduced to explain the coexistence of competition and collaboration. One of the most crucial factors in the apparel manufacturing is the balance of production capacity. While the threshold of garment factories is not high, the factories have to earn money during low seasons and do not sacrifice qualities during peak seasons. Through the good mechanism between Sales team and Production team, the production capacity could reach high performance. As the Complementors in the Value Net, it can maximize the investment return by taking advantage of the “third path,” the third way between 100% self- production and 100% outsourcing. In the complicated global environment, we regard the subcontractors, small or medium-sized factories, as Complementors, which relies heavily on apparel manufacturers to provide orders. For garment manufacturers, the demand from huge customer base is diversed with complex styles and delivery date. It is hard to meet all customer requirements merely depends on self-owned production. To maximize the profit, small garment subcontractors and big manufacturers collaborate and become a coopetition relationship based on trust. New Wide Group regards the “third path” as a vital strategy to compete in the global markets.