Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 12 pages
Data source: Published sources
Topics:
Esquel's vertical integration; Backward and forward integration; Low cost advantage; Electronic data interchange; Long staple cotton, spinning mills; Supply chain management; China's textile industry; Distribution and logistics; Multifibre agreement; Merchandising, sweatshops; General Agreement on Trade and Tariffs (GATT); Istanbul declaration on elimination of quotas; Textile quotas; Marjorie Yang; Nike, Tommy Hilfiger, Marks and Spencer, Hugo Boss
Abstract
The Esquel Group, based in Hong Kong, has been a cotton textile and apparel manufacturer since 1978. In an industry, where its competitors increasingly rely on outsourcing and specialisation, the company does everything in-house, like cotton farming, spinning, weaving, dyeing, knitting and distribution. Vertical integration of its activities provided Esquel with more control over the quality of its products, reduced lead times and enabled it to attract high profile names in the fashion and garment industry. The case helps to discuss the possible benefits that could be derived from vertical integration and also the possible demerits of vertical integration. The case highlights the opportunities and challenges that textile and clothing manufacturers in the developing countries might face if textile quotas are eliminated. A structured assignment ''304-286-4'' is available to accompany this case.
Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 12 pages
Data source: Published sources
Topics:
Esquel's vertical integration; Backward and forward integration; Low cost advantage; Electronic data interchange; Long staple cotton, spinning mills; Supply chain management; China's textile industry; Distribution and logistics; Multifibre agreement; Merchandising, sweatshops; General Agreement on Trade and Tariffs (GATT); Istanbul declaration on elimination of quotas; Textile quotas; Marjorie Yang; Nike, Tommy Hilfiger, Marks and Spencer, Hugo Boss
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Abstract
The Esquel Group, based in Hong Kong, has been a cotton textile and apparel manufacturer since 1978. In an industry, where its competitors increasingly rely on outsourcing and specialisation, the company does everything in-house, like cotton farming, spinning, weaving, dyeing, knitting and distribution. Vertical integration of its activities provided Esquel with more control over the quality of its products, reduced lead times and enabled it to attract high profile names in the fashion and garment industry. The case helps to discuss the possible benefits that could be derived from vertical integration and also the possible demerits of vertical integration. The case highlights the opportunities and challenges that textile and clothing manufacturers in the developing countries might face if textile quotas are eliminated. A structured assignment ''304-286-4'' is available to accompany this case.
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Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 12 pages
Data source: Published sources
Topics:
Esquel's vertical integration; Backward and forward integration; Low cost advantage; Electronic data interchange; Long staple cotton, spinning mills; Supply chain management; China's textile industry; Distribution and logistics; Multifibre agreement; Merchandising, sweatshops; General Agreement on Trade and Tariffs (GATT); Istanbul declaration on elimination of quotas; Textile quotas; Marjorie Yang; Nike, Tommy Hilfiger, Marks and Spencer, Hugo Boss