A study of the strategies of clothing manufacturers in Hong Kong in the declining industry

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A study of the strategies of clothing manufacturers in Hong Kong in the declining industry


Author: Leung, Siu-kwan Benjamin
Title: A study of the strategies of clothing manufacturers in Hong Kong in the declining industry
Year: 1999
Subject: Clothing trade -- China -- Hong Kong
Strategic planning -- China -- Hong Kong
Hong Kong Polytechnic University -- Dissertations
Department: Dept. of Management
Pages: vii, 80, [8] leaves : ill. ; 30 cm
Language: English
OneSearch: https://www.lib.polyu.edu.hk/bib/b1469508
URI: http://theses.lib.polyu.edu.hk/handle/200/2130
Abstract: The garment industry is the largest manufacturing industry in Hong Kong in terms of gross output, employment and domestic exports and is very important to the our economy. Historically, the industry expanded rapidly in the 1950s, taking advantage of the large influx of capital, entrepreneurial skills and cheap labour from China. Over time, these advantages were eroded as labour costs rose and low cost Asian competitors developed their own clothing industries. During the recent years, the garment manufacturers in HK has gone through a very difficult period. Many firms' business turnover has dropped dramatically and some manufacturers even collapse. Also the number of people working in the industry and the number of establishments are declining rapidly in the recent years. Some manufacturers has perceived this industry as unprofitable and unattractive. They need to implement some strategies to cope with the declining industry. These strategies include "Harvesting Strategy", "Niche Strategy", "Increase the Investment strategy", "Maintain the Status Quo Strategy" and "Divesting Strategy". In this project, I would first review the industry to depict declining stage of the industry and conduct the environmental and industrial analysis to explore the sources of the problems and the position of the industry in Hong Kong. A survey was then conducted to analyze what strategies were available to the industry and under what circumstances would the manufacturers implement different strategies. The relationship between the strategies and firm performances was also examined in this study.

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