Sport Shoe Case Study

China is one of the world's biggest manufacturing hubs and a top choice for companies from around the globe. China has over 30year’s experience in producing goods for Western markets and now represents a huge part of the global consumer market. Compared to many of its neighbouring countries, China does a better job at retaining its place in the low-end industry segment. To be honest, it's cheaper to manufacture in China. This was why Sport Shoe Inc. had decided to manufacture in Pacific Rim.

One of the main attractive reason Sport Shoes Inc. manufactured in China is because low labour costs. is home to approximately 1.35 billion people, which makes it the most populous country in the world. The law of supply and demand tells us that since

are often limited in capacity and time, but this is never the case with their Chinese counterparts. China manufacturers are known for their high capacity and quick turnover times. Many China factories have the capacity to produce large orders in a timely manner. When a China manufacturer informs you they can have your order done in four weeks, it will likely be done in four weeks.

The most common reason is the reduction of the cost. It is often cheaper to manufacture in China. Sport Shoes Inc. used to manufacture in bulk quantities because of expansion of the business. It started with three stores and now has expanded the business to a current of sixty stores in Mexico’s Golden Triangle. This will be a golden opportunities to manufactured in China in order to minimise the costs. Keep in mind, all prices are negotiable in China if purchase in large

Remember, service levels may change once you have signed the contract, so your expectations for your ongoing relationship should be clear. Make sure do some research of the manufacturer such as background, supporting details, feedbacks comments before manufacturing to ensure that is a trustworthy manufacturer in order to prevent cheating.

However, this results in trade off effects which is giving up of one benefit, in order to gain another regarded as more desirable such as the price versus the quality of the sport shoes, you cannot get both at the same time. A great way to manage and regulate their manufacturing process is to hire a trusted local agent in the factories to monitor the whole process to prevent using cheap and low quality material. You or your agent can then make in-person inspections for quality and conformity to make sure the Sport shoes are not in the bad