Subject category:
Economics, Politics and Business Environment
Published by:
NeilsonJournals Publishing
Abstract
This case study addresses critical aspects of the strategic management decision to be made by Wenzhou Aike Shoes Company, Ltd, a Chinese multinational shoe manufacturer. The specific focus is on Aike''s operations in Elche, Spain. Over a period of several years, upheaval stemming from a multitude of Chinese new entrants to Elche''s revered shoemaking industry reached a flashpoint. The Chinese new entrants run operations significantly differently than the local Elche businesses in terms of daily practices, production, imitation, price competition, and supply chain management. All of these aspects derive from deep cultural differences and are highlighted in the case. Several strategic options, such as foreign partnership, brand acquisition, and exiting Elche are presented for discussion. This article has been peer reviewed by the editorial board of the Journal of International Business Education - JIBE.
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Abstract
This case study addresses critical aspects of the strategic management decision to be made by Wenzhou Aike Shoes Company, Ltd, a Chinese multinational shoe manufacturer. The specific focus is on Aike''s operations in Elche, Spain. Over a period of several years, upheaval stemming from a multitude of Chinese new entrants to Elche''s revered shoemaking industry reached a flashpoint. The Chinese new entrants run operations significantly differently than the local Elche businesses in terms of daily practices, production, imitation, price competition, and supply chain management. All of these aspects derive from deep cultural differences and are highlighted in the case. Several strategic options, such as foreign partnership, brand acquisition, and exiting Elche are presented for discussion. This article has been peer reviewed by the editorial board of the Journal of International Business Education - JIBE.