China Flips Switch to Fancy Exports
In the 1990s and beginning of 2000s, China is the most common country to export low-value products to developed nations. People can easily see ‘Made in China’ which is a country of origin label affixed to products manufactured in China when they purchase T-shirts or Jeans of masstige brands. However, the current trend is towards other Southeast Asian countries, such as Malaysia, Indonesia, and the Philippines. For instance, the main manufacturing plant of Abercrombie, which is one of the masstige brands in the USA, is located in the Philippines, so the country of origin label of Abercrombie is “Made in Philippines”. This article mainly discusses why China should change their export strategy form the low-end product to the high-end product and how the company, Inventronics Inc., gain a competitive advantage over rival companies. This paper will present essential components for the accurate analysis that indicates the validity of this article.
Many experts have said that China might no longer be suitable country to manufacture low-end products, but many Chinese companies can aim low-cost leadership in manufacturing high-tech products. Around 10 years ago, market conditions in China were very suitable to manufacture low-end products for exporting to developed nations. Thus, many global manufacturing companies had considerably wanted to form their offshoring activities in China because the key factors to consider when manufacturing are labor costs and material costs. However, it is easy to recognize the current tendency of Chinese manufacturers pursuing high-end products through the Bay Bridge to connect between San-Francisco and Oakland. According to the article, for the Bay Bridge’s nightly light show, it depends heavily on imports for sophisticated power devices that were made by the Chinese company, Inventronics Inc., and are obviously dealing with high-end electronic technology. Actually, Chinese government or global...
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