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Wenzhou Aike Shoes and boots Company Case Study

 Wenzhou Aike Shoes Company Case Study Article

Summary of Wenzhou Aike Shoes Business Case Study

This case study addresses critical aspects of the strategic decision to be created by Ma Juncheng, CEO of Wenzhou Aike Shoes Company, Ltd., a Chinese multinational shoe maker. The specific focus of the case is on Aike's operations in Elche, Spain. Over a period of a few years, upheaval stemming from a multitude of Chinese new entrants to Elche's adored shoemaking sector reached a flashpoint. The Chinese new entrants operate operations significantly differently than the neighborhood Elche businesses in terms of daily practices, creation, imitation, cost competition, and supply chain management. All of these aspects derive coming from deep social differences, will be highlighted in the case, and ponder upon the decision facing Ma. The flashpoint occurred once local residents and organization owner's digital rebel, riot, and place fire to a large amount of Aike's inventory mainly because they wished to force the Chinese businesses out of Elche Shoes Market. Ma, CEO of Aike Shoes Company, reinforced to continue businesses in Elche but however it seem impossible because his firm and an additional Chinese companies caused the Elche's local shoe stores and factories had sustained a sharp recessions, and by 2002 60% of these were closed. Ma believed four potential strategic choices;

1 . Continue in Elche and alter the procedure style

2 . Exiting Elche and coming into another country (Africa)

3. Acquiring your own brand

4. Co-operation with overseas partnership

Examining the Strategies

Remain in Elche and Change Procedures: After the open fire in Elche, Aike was aware of the effect of ethnical differences on the global organization. In this case, the key issue is definitely cultural conflict. The Spanish shoemakers should understand that they couldn't compare with Chinese Makers on prices, so they need to try to take out barriers in this international market. On the other hand, Aike should rearrange should have change its procedures with a view toward respecting Spanish...

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