The Strategy Research Of CWS’s Transformation And Upgrading

With the world financial crisis in 2008, as a labor-intensive garment business is in difficult position.Forecasting 2015,the world economic situation will be still serious.The U.S. and Europe economies are in recovery but still remains volatility and repetitive.In such a situation,garment business will face a lot of pressure. CWS is a private garment company who has 35 years history in textile manufacture.The main business is the OEM production of fabric and garment. Under the influence of global economy in recent years,the traditional business model has been severely challenged. Additionally,with the development of processing industries in other countries in Southeast Asian, processing base---Vietnam price advantage has been gradually disappearing.In this case,the transformation and upgrading is the only way to out.Paper to Resources theory,and Global value chain theory and the Compared advantage,and Competitive advantage theory for based, we analyzed CWS by SWOT competition strategy,and combining with domestic garment environment of PEST analysis,it shows that CWS exist following problems:The single profit model and the lack of clear marketing strategy lead to weak compressive strength; Falling profits caused by excessive expansion; The pressure from cost increase and market downturn; Increased cost casued by poor technology/quality in Vietnam;Family-run management leads to weak human resources and unprofessional management team.To solve these problems, the article on the basis of the company transformation and upgrading theory,proposed three strategies as following:Brand strategy,CWS can create brand to occupy domestic market based on OEM business. It will help CWS generate value chain and enhance company’s core competitiveness. In the process of OBM,the organization structure and leadership of enterprise should be improved accordingly. Innovation strategy,the innovation ability of technology/model/channel for CWS need be further improved. It will make CWS more new competitiveness. Marketing strategy,the passive sales strategy should be replaced by active model,then the marketing will be more broad.The thesis integrates the theory of OEM’s transformation and upgrading into the practice of CWS.It plays a good guidance and reference role on CWS’s transformation and upgrading.