If the Shoe Fits: Wenzhou Aike Shoes Company, Ltd.

Abstract

This case study addresses critical aspects of the strategic management decision to be made by Wenzhou Aike Shoes Company, Ltd., a Chinese multinational shoe manufacturer. The specific focus is on Aike’s operations in Elche, Spain. Over a period of several years, upheaval stemming from a multitude of Chinese new entrants to Elche’s revered shoemaking industry reached a flashpoint. The Chinese new entrants run operations significantly differently than the local Elche businesses in terms of daily practices, production, imitation, price competition, and supply chain management. All of these aspects derive from deep cultural differences and are highlighted in the case. Several strategic options, such as foreign partnership, brand acquisition, and exiting Elche are presented for discussion.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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