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Li & Fung Case Study

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Li & Fung Case Study
One belt and Road driver
The compose of OBOR are the land-based “Silk Road Economic Belt” and the “21st Century Maritime Silk Road”. The previous is going from West to East Asia, from Turkey to Beijing and the latter is connecting Africa, the Middle East, South- and Southeast Asia. It is the most far-reaching initiative that China has ever pushed forward. It concerns 65 countries and 4.4 billion people. The OBOR vision reflects the demand from relevant countries for releasing infrastructure bottlenecks and improving connectivity with large markets in Asia and Europe as well as the need for China’s own development and security.
The OBOR initiative will also help Li & Fung to identify new drivers for growth in its sourcing & logistics business …show more content…
Speed to market is more important rise by e-commerce for example, shorten delivery times to consumers have changed the entire retail supply chain including regional distribution strategies. The technical ability of locations and innovative buildings of multi-channel sourcing Platforms for O2O, B2B and B2C in additional to modern warehouse and distribution centre to support the ever increasing demands and speed of output is ever more important factor to determine market position and able to builder strong supplier, customer relationship to facilitate future business opportunity and capturing market share.

Li Fung should diversify sourcing markets and product portfolio by supporting the development and connectivity of suppliers and trading markets with retailers in emerging and developing countries to take advantage of low cost sourcing strategies and expend market share in geography coverage in additional to US & Europe, thereby contributing to continued strong and sustainable growth in global scale while simultaneously benefiting from new commercial opportunities.
The Free Zone Trade covers great business opportunities in OBOR project. Li Fung can benefit from various measures that should look forward to Free Trade Zone opportunities in order to take advantage of the privileges to expend their logistic business or engage in specific sourcing and trade
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