Essay about Case Study Analysis-Li and Fung

2309 Words Apr 25th, 2008 10 Pages
CONTENTS:

1. Executive Summary ………………………………………………3
2. Introduction………………………………………………………..4
3. Challenges & Strength……………………………………………5-6
4. Competitor’s Analysis…………………………………………….7-8
5. Information System….…………………………………………….9
6. 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 in
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If they had to manage an order, they would evaluate the best possible option that would suite them. Suppose they have an order to make children’s outfit, they would design the pattern in Hong Kong, get the fabric from Thailand, stitched in India, dyed in Bangladesh, finally checked and packed in Hong Kong again and shipped to the required destination within the given frame of time.

COMPETITORS ANALYSIS:

Li and Fung have many competitors but in terms of size and level of competition there are very few who are competing strongly against them because of their strategy of acquisition of closest competitor. One of the challenges is to compete with competitors who are very small in size and local to their buyers. as they have their own strength and weaknesses such as they can provide more customize and specialized service which may be a challenge for Li and Fung because of global business such as SME in America need urgent delivery because of unexpected demand of certain product which can take time to be delivered by Li & Fung even though their manufacture have stock because of distance between their customer and manufacturer which may take about 10 to 15 days whereas the local supplier will take lesser time then them.

Implication of porter five forces:

Threat of new entry:

Because of high profitability there is always a possibility of new competitor entering the market. The company’s size and structure along with its dominating strategy

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