Tal Apparel Essay

851 Words4 Pages
Case Name: 1 TAL APPAREL LIMITED: STEPPING UP THE VALUE CHAIN Problem Statement 1 With China’s accession into the WTO, how is this going to affect TAL Apparel limited? Background 1 History 1 Started in 1947 by the Lee family with one spinning mill 1 In 1962 the family textile mills banded together to form Textile Alliance Limited (TAL). 2 In 1983 a garment division was formed as a subsidiary of the parent company 3 TAL Global Alliance Limited (TGA) was formed in 2001 1 To look after the global sales and marketing side of the business 2 Managing director: Dr. Harry Lee 3 Their corporate headquarters is in Hong Kong 4 Owned and operated a network of 11 factories 1 23,000 workers world wide 5 The company started to adopt Electronic Data Interchange (EDI) and Supply Chain Management (SCM) in the Early 1990s 2 Conditions 1 Healthy company looking to grow 3 Culture 1 Close relationship with its retailer customers 2 Pioneer in technology 4 Strengths 1 The largest garment manufacturers in the world 1 USD590 million annual turnover in 2002/3 2 Supplier to J.C. Penny which is one of the five largest retailers in US 3 Strong presence in the fashion and apparel industry 1 Sold one in every eight dress shirts sold in the US 4 Heavy investor in technology and development to boost innovations in garment manufacturing 5 IT investments were starting to pay off 1 SofTal technology is giving them foresight on durability 6 TAL has been around for 40 years, they are experienced now 7 The Headquarters in Hong-Kong, China can be used to leverage moving production to China, since there is cheaper labor there 8 Vendor Managed Inventory (VMI) and MTM 5 Weaknesses 1 The in-house development largely unfruitful due to the diversity of, and incompatibility among the existing platforms,
Open Document