The Research of Strategy Selection of Vertical Intergration or Horizontal Expansion of Garment Company - Case Study of Makalot Industrial Co., ltd.

Autor: Su-Ying chen, 陳淑瑩
Rok vydání: 2004
Druh dokumentu: 學位論文 ; thesis
Popis: 92
The apparel industry will be impacted by environmental changes, such as Quota-Free in 2005, low-cost production oriented, demand fluctuation, and shorter the lead-time, etc. Therefore, the garment company needs to discuss the products and buyers portfolio and adjust growing strategy, either keep the horizontal expansion strategy, or to adopt the vertical integration strategy. Following several theoretical arguments, such as the resource-based view, buyer-supplier relationship, cost structure, and environmental impact, etc. the research conduct a case study to collect empirical information and discuss the firm’s selection of the adapting strategies. The research as followed: (1)The production capabilities will be reconfigured for total cost consideration and flexibility concern to adapt the quota-free impact. (2)If the firm adopts the horizontal expansion strategy, such as enhance the products-buyers portfolio, the capabilities and relevant resources is the important decision factor for the strategic execution. (3)Following the horizontal expansion strategy, either to build new customers relation, or to increase now product items, customer relationship management will be the key factor. (4)If the firm adopts the vertical integration strategy, the synergy and value added capacity is the most important concern for the core business and their up or down stream integration. (5)The strategic alliance will be the best selection for the situation that as higher variety of products, multiple products-buyers portfolio, and adopts the vertical integration strategy.
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