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Koyo Essay

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Full version Strategic Capabilities
Strategic Capabilities
This print version free essay Strategic Capabilities.

Category: Business
Autor: stellacao 20 December 2013
Words: 1238 | Pages: 5
Over the last decades, the Hong Kong garment industry has enjoyed the golden time with the accelerating trend of economic globalization. Being a renowned international brand is one of the significant business strategies for building competitive advantages. Koyo Jeans is a fashion brand that has successfully transformed from a local garment wholesaler and retailer to international brand. Its international expansion is a deliberately designed and long-term strategy that well utilizes existing capabilities of the firm and leverages their unique capabilities in search of location-specific advantages (Dunning 1988). In the course of international expansion, Koyo Jeans is identifying the opportunities and risks, propelling the strengths, promoting creativities and avoiding the weakness.

This assignment is based on the analysis of internationalization of Koyo Jeans, by assessing its value chain, strategic capabilities and SWOT.

Porter (1998) defines value chain as the activities taken by the business and relates them to the analysis of business strengths and weaknesses. It consists of primary activities and support activities. Primary activities are directly associated with producing and delivering products or service (e.g. inbound logistics, operations, outbound logistics, marketing and sales, and service). Relating the Koyo Jeans case study, inbound logistics , it is headquartered in Hong Kong and manufactured in Humen factory and this implies that its most raw materials can be sourced from China where it is cost-effectives. Also, the Hong Kong 's ports are convenient so that the logistics cost and cycle can be reduced. Second, regarding to operations, Koyo has two different production lines: low-end products for wholesale markets


References: Au K. et al. (2011) Internationalization of Koyo Jeans from Hong Kong. Richard Ivey School of Business Foundation Dunning, J Johnson, G. et al. (2008), Exploring Corporate Strategy Text and Cases. 7th edn., Harlow. FT Prentice Hall Porter, M Thomson, A. A. et al. (2004), Strategy, Winning in the Market Place, 1st edn., Irwin/McGraw-Hill.
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