TAL Visit Question List – C02
- What is your future plan for developing new technologies?
Answer:
TAL has put a lot of resource in research and development, as TAL want to provide products with better quality so as to add more value to the product, and with this in mind, the clients will be willing to not only focusing on a cheaper price, but a good quality, and using it to differentiate TAL from others in the industry.
And in term of Information Technologies, TAL has developed some in-house IT programs that developed by itself, which other companies cannot copy, and that makes the unique IT software TAL has been using a comparative advantage.
And in the future, TAL will continue to keep track of the latest breakthrough in technology and adapt them to improve current products and services.
- As TAL has a deep understanding on the customer preference and product design, will TAL consider the possibilities to transfer its position from manufacturer/ vendor to retailer, such as taking the advantage of the internet coverage and trend of online shopping, to become an online retailer to sell your own products?
- Can TAL explore the opportunity of “Total customization”, such that having a website allowing individual customers to design their own clothing, to create a new business opportunity?
Answer to questions 2 and 3 :
People chose TAL because TAL clearly understood the industry and the capability itself, it always provided professional solutions and met customers’ expectation so high reliability could be created, and more importantly, the clients trust TAL that they can rely on TAL as TAL would not do any attempt to destroy this trust. As a result reliability was an essential element for TAL to position itself as a garment manufacturer.
And regarding future plans for expansion, TAL want to continue its business by focus on the improving the product quality and providing excellent services to its customers. For the time being, TAL avoids to compete directly with clients, TAL has no intention to provide B2C services, and so that an online platform for direct sales to customers may not be possible. However, TAL provides an online platform for their business clients so that the clients can communicate with TAL in a more convenient way and also allowing real time data exchange.
4. How does TAL get involved in corporate social responsibility?
5. Will
TAL consider any merging & acquisition to expand the business?
Answer:
TAL will focus on manufacturing and the majority customer will still be North America at this stage. Nevertheless, TAL is considering expanding the marker to China.
6. Why does not TAL produce material to get full control of its value chain?
Answer:
Although TAL is already involved in the five steps of value chain, i.e. inbound logistics, operations, outbound logistics, marketing and sales and service, TAL still want to focus on manufacturing (the operation) among the five aspects. For the fabric used, TAL will not produce, but instead select and order raw materials according to TAL sales pattern or some new design requirements.
7.
As we know that ERP system is a sophisticated software and involved huge capital investment. Has TAL encountered any difficulties and hurdles when TAL initially adopted VMI system?
Answer :
TAL has a I.T team to focus on the VMI system. This team also provides training for their employees. Their customers are willing to provide data to TAL. It is because both of TAL and their customers can also gain benefits from the VMI system. So they have not actually encountered any difficulties and hurdles.
8.
We all know that TAL has been using IT to gain a big success. However, other companies are likely to follow the same strategies to succeed by using the similar IT systems. How could you continuously maintain your market share and stay competitive?
Answer :
TAL invest lots of resources to discover more technology and innovation products. They also applied the patent for all their innovation products. Other companies are very difficult to copy those products and need to spend some time to discover them. Moreover, their customers are very loyal to TAL because of their brilliant customer service and the VMI system. They will keep focusing on finding more new innovation products to stay competitive.
9.
How does TAL face the trade-off between high innovation cost and the benefits of competitive advantage?
Answer :
TAL names itself as an Innofacturer. It concentrates on the innovation products to attract customers. It has a team to mainly focus on new technology for their cloths, pants etc. Based on the past successful experience, they are confident on paying a high innovation cost to discover a new technology. In the future, they will still follow the same strategy. They believe a high innovation cost is needed to gain the benefits of competitive advantage.
4. How does TAL get involved in corporate social responsibility?
Answer:
TAL gets involved in corporate social
responsibility in the aspects of employee and environment. To the employee, TAL
implements occupational safety and health standard and provides a safe place
for the employees to work. Externally certified safety officers have been
hired in some factories to ensure all health and safety-conscious measures are
conducted on a professional level. The committees themselves will meet
regularly and provide platform for employees for evaluating work accident
status, identifying potential accident and setting up precautionary measures,
and most importantly reviewing employee suggestions to ensure workplace safety.
To the environment, TAL
introduced environmentally friendly policies in South East Asian factories, for
instance, waste water treatment, water scrubbers for exhaust emission
management etc. One worth mentioning is the strict control of
kitchen exhaust emissions from workers’ canteens, which is rarely adopted by
other companies.
Answer:
TAL will focus on manufacturing and the majority customer will still be North America at this stage. Nevertheless, TAL is considering expanding the marker to China.
6. Why does not TAL produce material to get full control of its value chain?
Answer:
Although TAL is already involved in the five steps of value chain, i.e. inbound logistics, operations, outbound logistics, marketing and sales and service, TAL still want to focus on manufacturing (the operation) among the five aspects. For the fabric used, TAL will not produce, but instead select and order raw materials according to TAL sales pattern or some new design requirements.
7.
As we know that ERP system is a sophisticated software and involved huge capital investment. Has TAL encountered any difficulties and hurdles when TAL initially adopted VMI system?
Answer :
TAL has a I.T team to focus on the VMI system. This team also provides training for their employees. Their customers are willing to provide data to TAL. It is because both of TAL and their customers can also gain benefits from the VMI system. So they have not actually encountered any difficulties and hurdles.
8.
We all know that TAL has been using IT to gain a big success. However, other companies are likely to follow the same strategies to succeed by using the similar IT systems. How could you continuously maintain your market share and stay competitive?
Answer :
TAL invest lots of resources to discover more technology and innovation products. They also applied the patent for all their innovation products. Other companies are very difficult to copy those products and need to spend some time to discover them. Moreover, their customers are very loyal to TAL because of their brilliant customer service and the VMI system. They will keep focusing on finding more new innovation products to stay competitive.
9.
How does TAL face the trade-off between high innovation cost and the benefits of competitive advantage?
Answer :
TAL names itself as an Innofacturer. It concentrates on the innovation products to attract customers. It has a team to mainly focus on new technology for their cloths, pants etc. Based on the past successful experience, they are confident on paying a high innovation cost to discover a new technology. In the future, they will still follow the same strategy. They believe a high innovation cost is needed to gain the benefits of competitive advantage.
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