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PART B: Justify which type of Porter’s Generic Strategy will suit JH Men’s Apparel more?

How should JH overcome the constraints of implementing the same?

The ideal strategy for JH Men’s apparel would be Focus. To achieve cost leadership Xu would have to scale up the operations. It does not possess any technological knowhow which can make this strategy sustainable in the long run. Also the changing external environment where the labor and material cost are continuously rising does not favor it. Hence the option to continue with its existing strategy or collaborating with an OEM might not prove fruitful. JH’s strength lies in coming up with new designs in-house and their commitment to producing quality sweaters. They should leverage this strength and try to create a brand which will enable his customers have a brand recall. By tying with department store’s Xu can focus only on a particular segment who appreciates the unique designs and premium quality of the sweaters.