Dalian Xinhe Leather Clothing: Strategic Transformation in Response to COVID-19
(7 pages of text)
Founded in 2000, Dalian Xinhe Leather Clothing Co. Ltd. (Dalian Xinhe) mainly produced men’s and women’s leather clothing; it had become the largest leather garment manufacturer in northeast China. At the beginning of 2020, in response to the COVID-19 pandemic, Dalian Xinhe began to produce medical protective clothing, which brought the company through the business challenges created by the pandemic and earned it wide recognition from the government and society. As the pandemic situation evolved, two opinions emerged within the company with regard to Dalian Xinhe’s further development. Chun He, the chairman of Dalian Xinhe, needed to determine whether the company should continue to expand production of medical protective clothing or whether it should concentrate on returning to original garment manufacturing and developing the company’s own brands.
This case is suitable for undergraduate- or graduate-level courses on strategic management and can be used to discuss and explain the reasons and the required capabilities for strategic changes in a dynamic environment.
After working through the case and assignment questions, students will be able to do the following:
- Understand the impact of the COVID-19 pandemic on the garment industry and related enterprises.
- Analyze the external and internal factors that drive the strategic transformation of enterprises.
- Realize the key role of dynamic capability in the successful implementation of strategic transformation in an enterprise.
- Understand the view that the strategy of enterprises needs to be constantly adjusted according to the dynamic changes in the environment.
China, Medium, 2020
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