Shanghai Tang Case Study
April 6th, 2013
Shanghai Tang has been in the business of selling high quality retail items for men and women, clothing and accessories, since 1994. Their designs have been based upon Chinese cultural influence while also being modern and wearable in markets around the world. Although business has gone well under the leadership of Rafael Le Manse, the company is experiencing some new internal and external issues. Shanghai Tang’s competition is about to establish a market presence in China and in order to stay ahead in the game; Le Manse needs to figure out how to expand the existing customer base. Also, Le Manse’s long time creative partner, Joanne Ooi, is leaving …show more content…
This evidence can actually turn into a huge advantage for Shanghai Tang. They know exactly what the consumers are expecting to see out of their products! A disadvantage to this plan would be the heavy roll out of products that appeal to most of one market and possibly not many in another. This strategy is kind of an “all of your eggs in one basket” kind of a deal. Also, a strategy that takes away from an Asian focused presence is a strategy that is going against the plans of the future that were set forth when Le Manse took over.
Alternatively, what Shanghai Tang could do is to find a well-defined balance of both plans. Establish a stronger presence in the Asian market and maintain the loyal presence within the American/European customer base. This plan is going to take the most strategic planning but, if done properly, it will yield the highest reward. Shanghai Tang would be able to maintain profits in its strongest markets. The advantages of this were previously described. The disadvantage is that it is going to take a lot of manpower make this plan successful. Most of the attention will need to be devoted to the rising Asian market while not taking too much away from the company’s profit centers. The design staff will need to be working at near perfect levels with leadership that has to understand all customer and market profiles. Once