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TAL Apparel Limited: Stepping Up the Value Chain

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on 22 April 2014

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Transcript of TAL Apparel Limited: Stepping Up the Value Chain

TAL Apparel Limited: Stepping Up the Value Chain
Introduction
TAL is a Hong Kong based textile manufacturer
They supply major clothing companies in the US
78% of their sales are in the US
Problem
What direction should TAL go in to preserve their competitive advantage in the marketplace while environmental factors are changing?
Data Analysis
External environmental changes
China joins the World Trade Organization
Apparel production migration
Strategically aligning with changing marketplaces
Expand third party logistics
Expanding wholesale operation
Tyler Brown, Katie Crouch, Ben Findeisen, Taha Habib, Ben Petry
Decision Criteria
Improve (or at least maintain) competitive advantage
Keep a hold on textile market share
Align with company long term strategy
Cost of service
Ease of implementation
Amount of risk involved
Dependence on outside factors
Leverage with other organizations
Possible Solutions
Recommendations
Going forward our recommendation is to become a third party logistics provider with other companies
Can build off the success shown by J.C. Penney
This will allow the supply chain to operate at maximum efficiency
Questions?
Action Plan
Expand on product lines with JC Penney
Continue to improve their technology
Grow with other companies
Keep going the same
Wholesale
Third Party Logistics Provider
Keep Going the Same
Wholesale
Third Party Logistics Provider
Cost of service would stay the same
Knowledge base would stay the same
Short term profitability
Not sustainable long term
Strong manufacturing base
Efficient supply chain
Know what customers want
"TAL is a no-name giant..."
Difficulty differentiating product
Current success with JC Penney
Established blueprint for success
Possess connections with companies
Become indispensable to companies
Full transcript