Strategy Management (Case study 1: Li& Fung) SWOT Analysis Strength Opportunity Extensive network of suppliers (global reach supplier with SCM) Provision of value added service (customer centric structure) Entrepreneur corporate culture Low –end with hard goods Emerging Market Weakness Threaten Over dependence on US Market Vast supplier network makes it tough to maintain Increasing expense from acquisiton Continuing global economy downturn - Collapse of the American
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Threats & Limitations……………………………………………..10 7. Options…………………………………………………………….11 8. Recommendations…………………………………………………12 EXECUTIVE SUMMARY: For past 96 years Li & Fung has been an export trading company with its branches spread across the globe. The company plans to enter into a new venture of online business. Entering into online business the company faces challenges to retain its existing customers and to capture new markets of SME (Small and Medium Enterprises). The company strength lies
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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
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though there are many traders in the industry‚ only a handful have distinguished themselves because of their large global sourcing and manufacturing networks‚ such companies can even charge a premium for their services as they deliver extremely high levels of value and quality. Thus although buyers in this industry are price sensitive‚ there is a constant struggle between value for money (quality‚ timely delivery‚ customer service) and low cost. The trading industry lacks any significant barriers to
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This case study explains both the philosophy behind supply-chain management and the specific practices that Li & Fung has developed to reduce costs and lead times‚ allowing its customers to buy "closer to the market." Li & Fung‚ Hong Kong ’s largest export trading company‚ has been an innovator in global supply-chain management. Li & Fung has also been a pioneer in "dispersed manufacturing." It performs the higher-value-added tasks such as design and quality control in Hong Kong‚ and outsources
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Topic: Li & Fung Supply Chain Management and Operations Li & Fung: Global Supply Chain Manager From its inception in 1906‚ more than 100 years‚ especially since the 1980s‚ with economic globalization‚ Li & Fung’s business roles‚ it can be said with the evolution of the global economy‚ has experienced a historic change from simple middlemen to the global supply chain managers. After the mid-1990s‚ Li & Fung has actually become a global supply chain manager. Within the worldwide‚ he optimizes
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Levels of strategy • Corporate strategy (eg. Virgin‚ Nestle) Strategic Management Business‐level strategy Different ways of competing at the level of the individual Business Unit (SBU) How can competitive advantage be sustained? Hyper‐competition – Which industries/markets should we be in? – How is the corporate portfolio managed? • Business strategy (eg. Virgin Atlantic‚ Nestle babyfood) – Tactics used by an SBU to compete in the market • Generic strategies and how to sustain these
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MGT 550: Strategic Management Chapter 04: Business Level Strategy Instructor M. Moinul Haque Notable Quotes Alice said‚ “Would you please tell me which way to go from here?” The cat said‚ “That depends on where you want to get to.” Lewis Carroll Even if you are on the right track‚ you will get run over if you just sit there. Will Rogers 2 M. Moinul Haque‚ Premier University‚ Chittagong Business Level Strategy Core Competency The resources and capabilities that
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Chapter 5 Business Level Strategy Successful business model is the product of successful business level strategies. A successful business model can give a company competitive advantage over rivals. To craft a successful business model‚ strategic managers must determine three issues stated below: 1. What to be satisfied-customer’s needs: Customer needs are the wants that can be satisfied by the means of attributes of the products. Customers choose a product based on: A. Product differentiation
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BUSINESS LEVEL STRATEGIES Business strategies are the course of action adopted by an organization for each of its businesses separately‚ to serve identified customer groups and provide value to the customer by satisfaction of their needs. *Business level strategies can be classified into the following types:*- Cost leadership Differentiation strategy Focus strategy Integration strategy COST LEADERSHIP STRATEGY Benefits associated with cost leadership strategy:
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