Li & Fung Limited Case Study

1962 Words4 Pages

The case study analysis the evolution of Hong Kong based Li & Fung Limited from a traditional trading company into a global consumer goods export trading giant and a manager of customers supply chains. It discusses in detail the company’s efforts to constantly evolve its business model in response to the changes in the external environment and the customer needs and preferences. The case study examines Li & Fung’s major strategies viz. Positioning itself as supply chain manager, integration of operational strategy with its organizational strategies, customer-centric organizational structure, technology and Internet initiatives, and globalization efforts, which contributed to the company’s emergence as one of the world’s leading consumer goods trading companies. Finally, the case explores the challenges facing Li & Fung and discusses its future prospects in the light of these challenges. The key focus of the case is on enabling to gain a comprehensive understanding of globalization - rationale, levels of globalization, managing global operations, globalization strategies and challenges.

Li & Fung Limited is today one of the premier global consumer products export trading companies managing the supply chain for high-volume, time sensitive consumer goods, including garments, fashion accessories, toys, sporting goods, promotional merchandise, handicrafts, shoes, travel goods and household items. These goods are sourced through a network of offices in 40 countries for customers in the US, Europe and Asia.

The company concentrates on the sourcing of soft goods (mainly clothing); it also sources hard goods such as handicrafts, home furnishings, shoes, sporting goods, and toys. Li & Fung has an extensive network of suppliers, particu...

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...rs. The Fung brothers are picky on the kind of Internet tools to be used in their business. Today, the company has a huge customer base in United States that includes some of the big names like the Coca-Cola Co., Disney, and Kohl’s department store chain. Although this case presents a powerful success story, Li & Fung’s web service StudioDirect that aimed at SMEs has a high potential for failure. Li & Fung has come a long way in using Internet to develop and maintain a stable relationship with its customers.

References

Lynda M. Applegate, Robert D. Austin, and F. Warren McFarlan. (2007). ‘Corporate Information Strategy and Management, McGrawHill’ 7th Edition,. pp. 1-20

http://www.lifung.com

http://conversation.cgu.edu/is329/page/Li+and+Fung

www.aect.cuhk.edu.hk/~ect7010/Materials/Lecture/Lec2-LiFung

http://www.icmrindia.org/casestudies/case_books.htm

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