Li & Fung STRATEGY CASE- 3 HIMANI GUPTA ROLL No. 15 PGDM-IB 4/1/2011 (Q1) Explain briefly Li & Fung’s business model today. Comment on the sources of its competitive advantage. Is it sustainable? Why? Business Strategy Li & Fung uses the holistic supply chain management (SCM) strategy to benefit their clients by shortening order fulfillment from months to weeks which allows clients to reduce the amount of inventory they hold. In addition they remained as
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Li & Fung Established in 1906‚ Hong Kong–based Li & Fung is now one of the largest multinational trad-ing companies in the developing world‚ with annual sales of more than $7 billion in 2005‚ up from just $1.2 billion in 2000. The company‚ which is still run by the grandsons of the founder‚ Victor and William Fung‚ does not see itself as a traditional trading enterprise. Rather‚ it sees itself as an expert in supply chain management for its 500 or so customers. These customers are a diverse
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Deal - Supply Chain Management 2. Key success factors of Li & Fung 7 - Long term relationship with the suppliers - Dispersed Manufacturing/Borderless conversion strategy - The concept of “Soft $3” - Focus on core business and outsourcing the high cost segments 3. Discuss the strengths/weakness/opportunities and threats 8 given the recent and future economic climate - SWOT Summaries of Li & Fung 4. Li & Fung future under HK Government’s strategy to make 10
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indicate a different way of doing things‚ or it might generate notable competitive advantage. Li & Fung is Hong Kong’s largest export trading company. The company has moved from acting as a middleman between retailers and manufacturers to playing a much more extensive role in the management of the whole value chain. They work closely with their customers in the design and specification of products. Li and Fung have a close involvement in the high value-added front-end and back-end activities in
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Li Bai has had a long reputation of his calligraphy aesthetics. It was traditionally based upon the “word on the street‚” since majority of Li Bai’s life is based upon gossip‚ “Li Ba is one of the Chinese poets about whose life we know most; but must rather mean about whom there is the most gossip‚” but after countless of searches through books and extensive Internet search‚ a breach has appeared and behold‚ the only unique surviving calligraphy by Li Bai. It is not widely known‚ until now and housed
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Li & Fung is a one of the most successful trading company in Hong Kong. It creates value to its clients by providing total supply chain solution services from raw materials to finished products. The organic growth and acquiring industry rivals strategy have contributed to Li & Fung’s success in the past. The disruptive e-Commerce phenomenon forces Li & Fung to review its business strategy. With the combination of the new e-Commerce challenge and its core historical strengths‚ Li & Fung saw the
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Written Case #1 Li & Fung: Internet Issues Li & Fung is a Hong-Kong based import-export trading company that provides value-added services across the entire supply chain in a borderless manufacturing environment. The growth strategies for the company are a combination of an organic model‚ acquisitions‚ and use of E-Commerce technologies to extend the supply chain to new markets. Li & Fung hopes to offer its supply chain services to the small and medium-sized enterprise (SME) market by developing
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4P Analysis Product Li Ning focuses mainly on providing specialized and technical sports equipment including shoes‚ clothes‚ equipment as well as accessories. Horizontally‚ Li Ning categorized its product line as follows: Athletic Pro: advanced sports equipment to both athletics and normal consumers. Urban Sports: fashionable sports and casual wears. Brand Heritage: incorporate brand value with high fashion and technology. Crossover: designed by new edge artists. While vertically
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creativity through the art of fishbones fragments. Since more than two decades ago‚ an artist from the province of Fujian‚ China‚ Hanbing Li produce stunning artwork from discarded fishbones. Hanbing Li inspiration from traditional Chinese calligraphy‚ the fifty one year old man was using a variety of fishbones to disclose various patterns and landscapes. Once Hanbing Li graduated‚ majoring in arts and crafts at a university in China in 1989‚ he began experimenting with a fishbones in his work. "Since
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Li and Fung’s Core Strengths One of the core strengths of Li and Fung was acquisitions as they saw it as a means to sustain growth momentum. Most of the time they tried to “fill in the mosaic” by acquiring competitors in areas where they lacked positioning‚ expertise or talent. They just did not acquired companies they made them integrated with the old ones to make When they acquire companies Li & Fung’s strategy is to integrate incoming staff and streamline operations seamlessly within 100
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