Case Analysis About Esqual

Topics: Value added, Value chain, Investment Pages: 3 (603 words) Published: January 6, 2013
Maggie, How do you continue?

From the case, It is quite clear that Esqual group have chosen the way of differentiation. Esqual group is trying to approach the differentiation through both company growth & investment and CSR (Corporate social responsibility), and further more, try to integrating the company growth& investment and CSR, which is the characteristic of Esqual group.

Company growth & investment
Regarding the company growth & investment, we are trying to analyze Esqual’s success from three perspectives. There are “Creating value through value chain activities” “ Government relationship development” “ Culture”.

1) Creating value through value chain activities
Value chain activities are activities the firm completes in order to produce products and then sell, distribute and service those products in ways that create value for customers. We have to highlight several parts of value chain activities which Esqual group have done successful to support their strategy. [pic]

a) Vertical supply chain
Strong vertical supply chain is one of most important characteristic for Esqual. They own all phases of production in garment industry including cotton farms, Ginning and Spinning , Fabric, Garment manufacturing, accessories etc. There are evident advantages for Esqual’s strong vertical supply chain: 1) high consistent quality due to the control of both material and process; 2) cost advantage due to the own material and strong bargaining power; 3) lower time to market due to the flexible production and convenient locations; 4) distinctive characteristic due to the reputation as a result of strong vertical supply chain.

b) Operation
There are diversified manufacturing bases in China, Vietnam, Malaysia, Mauritius and Sri Lanka which allowed Esqual to allocate orders to factories in both quote and non-quote contries, making most efficient use of manufacturing base for the orders on hand. Besides, Esqual have invested a lot in...
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