Shenzhou International: Strategies for Growth and Expansion

Case study

Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Question 1....................................................................................................................................1
Question 2....................................................................................................................................1
Question 3....................................................................................................................................2
Question 4....................................................................................................................................3
PART B...........................................................................................................................................3
Question 1....................................................................................................................................3
Question 2....................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
PART A
Question 1
The apparel industry is constantly increasing due to change in globalization which is
constantly growing at rapid scale. The present report is based upon Shenzhou international which
is a Chinese textile and apparel manufacture. Apart from this, company have listed in Hong
Kong in year 2005 and it’s become of the largest company in terms of apparel manufacturing. In
terms of value chain, company have various partnerships with big international giant like Nike,
Adidas and Puma. Beside this, firm has its operation is different countries like, Ningbo, Quzhou
and Anqing and other various location. Company have setup robust system through which they
can provide different services in limited time period.
In year 2016, company have opened its factory in United States which is stepped into the
focus of international media. Shenzhou International is constantly improving its operation by
improving its value chain. For instance, company started manufacturing its products in Vietnam
and Cambodia due its economic cost. Hence, this increases the value chain by offering low cost
product in various countries. While opening its plant in US increase the brand value of the
company as it has profit in terms of taxation and market size. The country spends more on
apparel and fashion which increase the profit of the company. Through such initiative company
can deliver its products and raw material to Nike as it is one frequent buyer.
Question 2
Developing effective strategies throughout the year help company like Shenzhou to
increase its profit in respective years. The major factor, like introducing new plant in US which
is one of the emerging markets helps company to sustain in market for longer time period. In
2002, company purchase 500 mu plots to increase its production in Beilum to manage
production. Apart from this, company is building on demand production for Nike and Adidas to
increase its sales. In addition to this, organization needs to improve its supply chain, lead time
and flexibility which help in improving production.
Company tend to spend on Research and development in order to increase value of the
product in the market. However it is important for the company to assist clients by offering them
high quality services. This is another major reason for Shenzhou international to increase its
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