This research aimed to explore strategies to develop the cashmere industry in Mongolia. Questionnaire consisted of questions regarding the necessity of development in different sectors in the cashmere industry, and areas of necessary competition for the development of Mongolian cashmere industry. In addition, characteristics of respondents and their companies were questioned. Surveys were distributed to people working in cashmere manufacturing companies in Ulaanbaator, Mongolia between July 25th, 2012 to September 3rd, 2012, and a total of 79 questionnaires were included in the final analysis using descriptive analysis, t-test, one-way ANOVA, and Duncan test. Results showed that respondents perceived design as the sector that needed the most improvement, and product related strategies such as product quality, product differentiation, and design were more important than distribution or promotion related strategies. The perceptions on the development strategies differed according to company size and their target markets (domestic vs. export). Overall, respondents working in smaller companies showed greater concern for most sectors, and also felt technology, product quality and design were more important than those in working in larger companies. Companies that targeted the domestic market showed greater concern for herding and scouring sector than companies that exported, while the latter evaluated government policy, network, distribution/export channels more importantly than the former in developing the Mongolian cashmere industry.