Li and Fung Case
Autor: R4ph • February 26, 2014 • Essay • 910 Words (4 Pages) • 1,112 Views
Li & Fung (A) : Internet Issues
What has been the historic strengths of Li and Fung?
• Old company that has 100 years of experience and history, the company is well settled and is one of the leaders in the export trading. This also gives the company a really good brand image. Really good growth as a Trading Company
o 69 % sales USA and 27 % sales in Europe
o The company has Famous retailers such as American Eagle, Gymboree, the Limited
o Global sourcing network quite important
• The company has a really strong leadership. The fact that Li & Fung was and is still, in a way, a family business make the leader strongly committed to the success of the firm. Plus both of the current directors are really well publicly traded
o Both of the Brothers educated at Harvard Business School
o Victor completed his Ph.D and Taught at Harvard for 4 years
o 1972 He returned to Hong Kong to modernize the company management
• Really good global sourcing network, based in Hong Kong which is a hub concerning the export trading, the company also has offices all over the world that increase the reactivity and efficiency of the company.
o Teams of product specialist in 90 separate, individual companies more focused on the needs of specific customers
o Decentralized corporate structure for a better adaptability and rapid reaction to seasonal fashion shifts.
• Committed staff
o Meritocracy with the compensation
• Holistic Supply Chain Management that gives a competitive advantage to the company by having a clear view and understanding of the entire chain.
o Valued-added services through the whole supply chain
o Outsource manufacturing which needs less capital but which allow the company to propose lower cost and to be more flexible
• Organic Growth : “Three-year plan” which set goal and direction for the company according to the real world situation and the growth of the company.
• Acquisition strategy, which allow Li & Fung to gain new client accounts and operations from competitors.
• E-commerce, which make the company closer to its customer by responding for real-time and remedy, sending HD pictures via intranet.
What has
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