The Case Study of Li Fung †the Global Value Chain...

The Case Study of Li Fung – The Global Value Chain Configurator TITLE: THE CASE STUDY OF LI FUNG LIMITED ABSTRACT: The case illustrates the business history and evolution of Li Fung Limited, one of the Hong Kong’s oldest and largest trading companies. The case gives an overview of its evolution from a traditional trading company to a global export giant and a customers’ supply chain management giant. It discusses the company’s strategies to change its business models to the changing external environment and customer needs and preferences. The case elaborates the company’s strategies such as integration of operational strategy with its organizational strategies, customer-centric organizational structure, supply chain management†¦show more content†¦4.Reducing focus on American retailers to other retailers such as South Asian and Latin American market. SWOT ANALYSIS: INTERNAL ENVIRONMENT ANALYSIS: STRENGTH: 1.Broad market coverage 2.Manufacturing Competency 3.Proper Information System. 4.Brand name. 5.New venture management expertise. 6.The ability to manage strategic change. 7.Good financial management. WEAKNESS: 1.Improper strategy formulation. 2.Improper forecasting OPPORTUNITIES: 1.Developing new markets. 2.Making new profitable acquisitions. 3.Licensing deals with foreign companies. 4.Large number of alliances worldwide. THREATS: 1.The continuous fall of profit and market revenue. 2.Uncertainties in the retailing industry 3.Emergence of newer players. 4.Threats from â€Å"antisurge quotas† RECOMMENDATIONS: 1.Diversify its business to BRICS and Latin American countries as these are emerging economies. 2.Opening up online shopping portal for retailing business. 3.Entering into direct retailing market. 4.A proper strategy for gaining maximum of European market. 5.Making StudioDirect a full e-commerce company. ASSIGNMENT 1. Li Fung owes much of its ongoing success to its expertise in global value chain configuration. Define the concept of value chain and critically discuss the importance of value chain management for global companies. How did Li Fung use the value chain configuration in its globalization process? ANS: The value