文档介绍：Esquel’s Vertical Integration
Esquel’s Vertical Integration
Case Study Reference No. GRS0025
This case was written by Firdaus, under the direction of G Srikanth, ICFAI Business
School Case Development Centre. It is intended to be used as the basis for class
discussion rather than to illustrate either effective or ineffective handling of a management
situation. This case piled from published sources.
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© 2004, ICFAI Business School Case Development Centre
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Esquel’s Vertical Integration
Esquel’s Vertical Integration
“When I control my materials, I control my own destiny.”1
“Just as Andy Grove says, only the paranoid survive. We strongly subscribe to that theory. Because we are in a
petitive business, we have to constantly strive to improve ourselves and that has led to continuous efforts
to stay ahead of petition.”2
– Marjorie Yang
INSPECTNot FoIONr Reproduction COPY Chairperson and CEO, Esquel Group
Introduction
The Esquel Group (Esquel) was an apparel and textile manufacturer founded in 1978 by Yuan-Loong Yang. The
Hong Kong-pany undertook contract manufacturing in China for retailers abroad especially the developed
countries. Instead of purchasing quotas to export to the US from Hong Kong, pany decided to manufacture in
China, which had no import quotas and offered cheap and skilled labor. Marjorie Yang, who replaced her father as the
Chairperson of Esquel, transformed the business peted on lower costs to one that provided superior quality
peted on “Consistency, Flexibility,