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Research of Development Strategy of Small and Medium Garment Enterprises

Author: GuDongYing
Tutor: LiHongLin
School: Dongbei University of Finance
Course: Business management
Keywords: medium or small garment enterprises factor endowment environmental characteristics strategy
CLC: F426.86
Type: Master's thesis
Year: 2011
Downloads: 89
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Abstract

China’s garment industry is mainly constituted by a number of small and medium garment enterprises, and most of the small garment enterprises were doing OEM production in the beginning, the source of profit of these small garment enterprises was processing fees. To current international and domestic environment has undergone tremendous changes, rising labor costs, RMB appreciation, many countries have repeatedly strengthened trade protectionism.In such a grim situation, many medium and small garment enterprises encountered unprecedented crisis of survival, is likely to be eliminated.Faced with such adverse situation, small garment enterprises must have a clear development objective and a complete set of enterprise survival and development in line with the strategic plan to guide future development of enterprises. Strategic plan formulated is must after the depth understanding of the enterprise macro-environment and industry environment, Internal environment and development tendency, Only after in understanding these enterprises situation, the strategic option of the enterprise is feasible, before they can really played the role in the direction of development guidelines for enterprises.In the process of enterprise development.This thesis mainly adopted case studies method,and selected Guangzhou H garment enterprises as a case study, in basis of comprehensive understanding of this garment enterprise, on the integrated use of management, strategic management, industrial economics and other disciplines related to the theory of the enterprises in a specific analysis, this analysis attempts to find a strategic plan for Guangzhou H garment enterprises for future development, but also for the future development strategy of the majority of small garment enterprises provides a strategic plan for reference.This thesis introduced the basic conditions of guangzhou H garment enterprise and the operation of "Newto" garments, then put the enterprise as a case specific analysis. After described and analyzed the factor endowment of the enterprise and the growth strategy of the change process, This thesis further analyzed of H garment enterprise’s environment, including analysis of the macroeconomic environment, industry environmental analysis and internal analysis. The thesis analyzed H garment enterprise’s environment with comprehensive use of the theories and tools. First of all,used PEST analysis to analyze the macro environment, respectively the political and legal environment, economic environmental, social and cultural environment and technological environment. And used the industry life cycle theory, smile curve theory and the five competitive forces model to analyze H garment industry environment, the analysis of industry life cycle theory judged China’s garment industry was in mature stage, smiling curve theory is used to analyze the future development trends of small garment enterprises, the five competitive forces model analyzed industry competition conditions. The analysis of H garment enterprise’s the internal environment was used SWOT analysis, have carried out specific analysis the existence of internal strengths and weaknesses and external opportunities and threats. Finally.based on these analysis, put forward a strategic idea of Guangzhou H garment enterprise future growth strategy, and under the strategic idea got revelation of the other small garment enterprises, and ultimately came to the conclusion.The key innovation points of the thesis included two aspects:(1) The innovation of research perspective. Factor endowment theory is generally used to analyze trade relations between countries, or used to guide the government to implement foreign trade policy. In this thesis.used factor endowment theory to Investigate growth strategy of small garment enterprises from the micro level, then combined with the factor endowment of the enterprise and the characteristics of the enterprise environment to analyze the firm’s strategic plan. (2) The innovation of strategic idea. Based on a full analysis factor endowments, external environment, industry environmental trends and internal environment, boldly put forward a strategic idea of Guangzhou H garment enterprise future development strategy, and under the strategic idea got revelation of the other small garment enterprises.The inadequacies of the thesis there were three main areas:(1) This thesis selected Guangzhou H garment enterprise as a case study, it was difficult in a variety of enterprise information acquisition and processing, because of incomplete data and information handling improperly, made the thesis’s analysis was not deep enough and thorough. (2) This thesis used single case study approach, although single case study can have on enterprise for more in-depth research, but this study’s conclusions promoted must be have a discount. (3) The thesis in analysis of Guangzhou H garment enterprise took a variety of analytical methods, it is not easy to make these analytical methods well together. But also because the author lack of experience and the limitations of knowledge, made the analysis of H garment enterprise was not comprehensive enough.Through this analysis, can help Guangzhou H garment enterprise clear understood the factor endowment of the enterprise and the growth strategy of the change process, combined with the factor endowment of the enterprise and the characteristics of the enterprise environment to make a better strategic enterprise development program. Hope that this study is not only to Guangzhou H garment company has a direct reference significance, but also to many of the other small or medium garment enterprises that the same or similar situation with Guangzhou H garment enterprise had significance for indirect reference or revelation.

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