China is the major manufacturer of textile industry, however the production of textile is still mainly at the below-average level, therefore, the Chinese central government has started to support the technical reformation and improvement on textile industry including dying, sewing, weaving and the field of design and development in order to completely and comprehensively upgrade the textile industry in China. After conducting modification, adjustment, and improvement on industrial structures, the compatibility of Chinese textile industry has been strengthened to a stage of vigorous development.
The textile industry in Taiwan is one of our important foreign exchange earning that has complete industry-segment. In recent years, though Taiwanese textile industry has suffered the competition of cheap labors from China and southeastern Asian countries, and the importance of the foreign exchange earning on exports has relatively decreased, it’s still a very important industry in Taiwan, and it also has great contribution to Taiwanese economy. On the other hand, Chinese textile industry is competing with Taiwan on both domestic and overseas markets by having cheap and sufficient labor forces.
This research is based on the theory of value chain presented by Porter, and this theory is conducted to analyze the past and current value chain in Taiwanese textile industry and the case studyin order to offer some points and suggestions to Taiwanese textile industry from this research results. Taiwanese textile industry has gradually migrated to countries having cheaper labors, however, China is currently facing the problems of lack of labors, the increases on workers’ earnings, inflation and the increases on the cost of international materials. These problems have led to the increases on production cost which is a disadvantage to international compatibility.
The research purposes are as following:
1.The analysis of Taiwanese textile industry and its current status.
2.The analysis of Chinese textile industry and its current status.
3.To analyze the strategies of investment and management from company A in order to give the contribution on the management strategies for the textile companies that are heading to Chinese market.
The research conclusion are as following:
1.the textile industry in Taiwan has gradually shifted from labor intensive, techniques intensive to capital intensive, and it has upgraded to one of the major suppliers in the global textile markets.
2.Garments and accessary occupies the major portions of exports on Chinese textile industry, and it has the largest production of materials in the world.
3.The long-term and short-term plans of investment and management strategies are the key elements to company A ‘s success in China.