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TAL Apparel Limited: Stepping up the Value Chain                                                                                                                                                                                                          
Product Ref: 05/214C Company: TAL Apparel Limited

Product Type: Case Industry: Consumer Goods

Related Product(s): Teaching Note
Authors: Ali Farhoomand   Phoebe Ho
The global apparel industry is known to be a buyer-driven industry, led by the retailers, marketers and branded manufacturers. In the United States, in particular, the industry is dominated by a handful of giant retailers (Walmart, Sears, Kmart, Dayton Hudson, JC Penney), which account for over two thirds of all apparel sales. In recent years, these companies have increasingly deployed information technologies (IT) to gain market knowledge, streamline their value chain, and manage their extensive global sourcing networks. In response to market demand, TAL Apparel Limited (TAL), a no-name Hong Kong-based garment manufacturer, has developed a sophisticated information management system to manage the supply chain for its retailer customers, thus solidifying its position in the apparel value chain. By taking ownership of the customer ordering, inventory management and shipment dispatch functions, the manufacturer has gained valuable access to real-time market information, allowing it to venture into the design and test marketing business. This case explores how a traditionally weak member in the apparel industry uses IT to gain competitive advantage in the intensely competitive global marketplace, thus upgrading itself in the economic value chain.
Functional Area : Management of Information Systems

Issues: Strategic use of IT, competitive advantage, economic value chain, buyer-supplier relationship
Length: Text: 9 pages
Exhibits: 2 pages
Country: Hong Kong SAR

Pub. Year: 2005 Level of Difficulty: 2
This product type is available in the following language(s):      English   Simplified Chinese
Related Information: N/A
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