Swot Analysis of Li & Fung Ltd
Part I. Backgrounds Study:
Headquartered in Hong Kong, Li & Fung Limited’s extensive global sourcing network covers more than 80 offices in more than 40 economies around the world. The global trading company supplies high-volume, time-sensitive consumer goods. Particularly, garments make up a large part of its business which also covers the sourcing of hard goods such as fashion accessories, furnishings, gifts, handicrafts, home products, promotional merchandise, toys, sporting goods and travel goods.
Li & Fung plays the role as a supply chain manager across many producers and countries, covering over 80 offices and over 13,000 employees in more than 40 economies across North America, Europe and Asia. They provide product design and development, raw material and factory sourcing, production planning and management, quality assurance and export documentation to shipping consolidation.
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.
Part II. SWOT Analysis
Strengths of Li & Fung Limited
Strength is defined as the “characteristics of the business or team that give it an advantage over others in the industry”. The following part will analyze Li & Fung Ltd’s strengths in seven aspects, which are: flexible adjustments in supply, minimization of production cost, expertise in cost control, diversification of risk, complete chain of service, advanced information system and management, and low information cost.
1. Flexible adjustments in supplies
Li & Fung Limited (“Li & Fung” in the following) itself does not involve any production activity, all the goods they provided to the customers are not produced by them. Instead, they have growing network of nearly 11,000 international
Headquartered in Hong Kong, Li & Fung Limited’s extensive global sourcing network covers more than 80 offices in more than 40 economies around the world. The global trading company supplies high-volume, time-sensitive consumer goods. Particularly, garments make up a large part of its business which also covers the sourcing of hard goods such as fashion accessories, furnishings, gifts, handicrafts, home products, promotional merchandise, toys, sporting goods and travel goods.
Li & Fung plays the role as a supply chain manager across many producers and countries, covering over 80 offices and over 13,000 employees in more than 40 economies across North America, Europe and Asia. They provide product design and development, raw material and factory sourcing, production planning and management, quality assurance and export documentation to shipping consolidation.
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.
Part II. SWOT Analysis
Strengths of Li & Fung Limited
Strength is defined as the “characteristics of the business or team that give it an advantage over others in the industry”. The following part will analyze Li & Fung Ltd’s strengths in seven aspects, which are: flexible adjustments in supply, minimization of production cost, expertise in cost control, diversification of risk, complete chain of service, advanced information system and management, and low information cost.
1. Flexible adjustments in supplies
Li & Fung Limited (“Li & Fung” in the following) itself does not involve any production activity, all the goods they provided to the customers are not produced by them. Instead, they have growing network of nearly 11,000 international