A case study of Taiwan shoe manufacturing industry — Take Pou-Chen Group as example

Shoes are goods for people living. As the population rise worldwide and developing countries improve their economic status, people increase their ability of consuming. Moreover, the demand of athletic footwear increases due to the Olympic Games for every four years. Taiwan´s shoes makers were the biggest export in the world-wide because of cheap labors and low wage. These advantages, however, no more exist nowadays. Over the decades, Pou-Chen Group continues to strengthen its manufacturing capacity and enhance its operating efficiency to become the best partner with global branded companies. This article takes Pou-Chen Group as a case to analyze their strategies with SWOT. The result shows that Pou-Chen Group could turn to be an original design manufacture (ODM) from a simply OEM, vertically integrate its footwear business and expand production bases in some countries with cheap labors and land. In addition, Pou-Chen Group could continue the expansion strategy of diversifying product categories, increase investments into footwear-related business, and proactively develop retail distribution channels in Greater China. Pou-Chen Group also could keep on cooperating with its branded companies to provide full-line products and value-added services.