Details

Technical Note

A NOTE ON THE LAHORE KNITWEAR INDUSTRY STRUCTURE

Fahd Rahman, Hassan Rauf

INDUSTRY : Textile, Knitwear

AREA : Production & Operation Management

ORGANIZATION : Lahore

LENGTH : 8

LUMS No : 03-843-2016-2

PUBLICATION YEAR : 2016

KEYWORDS:

Knitwear, operations, Quote regime, knitwear industry, vertical units, operations strategy

DESCRIPTION:

This technical note on the Lahore knitwear garment industry captures the evolution of the industry that started with the advent of the Ammar Textiles Company. The note highlights the vertical structure of the industry in its earlier years and the issues that led to the adoption of the vertical model. The note also explains the benefits of quota regime that helped to kick start the industry. However, the stability of orders brought complacency among the entrepreneurs. The sudden loss of orders after the quota regime due to the regional competition signifies the structural issues in the industry. The note also highlights the current standing and sets the stage for discussion on the future of the industry.

LEARNING OBJECTIVES:

Understanding: 1. the economic and strategic drivers of vertical integration 2. the role of transaction cost in the evolution of industry structure, and 3. the significance of scope economy in the post-quota regime.

SUBJECTS COVERED:

Production, Operations Management, Operations Strategy