How Li & Fung Is Applying a Competitive Strategy on Trading?

387 Words2 Pages
‘Li & Fung’ - successfully trading company because of their brand name and their own strengthen strategies policy. However, there are some prospective risks breathing in its internet strategy, it should need to be handle gently to overcome its weakness and threats point. In this circumstance, Li & Fung may need to do some modifications in case any complication occur, which can make barriers for their company strategies and success path. Most of Li & Fung’s business partner is foreign company, so they should approaches for managing currency risk. For example: currency forecasting and sharing currency by adjustment clauses. Also, they should consider uncertainly of supply and dependence of foreign source, price increases for KEY commodities (i.e. cotton), extended and variable leading times, energy shortages or prices increase and increasing worldwide competition. Besides, they needs to provide accuracy and updated information via convenience platform to disseminate to all relativity parties and should adopting a long term for their multiple outsourcing, since it can greater security for supplier than short-term multiple sourcing and also leading to greater responsiveness and cooperation. At last, they should establish action plan, long-term strategy and short-term decision to meet the corporate objective. On the other hand, Li & Fung should focus on acquiring competing firms around the world. The developing countries like India have seen their economies grow. Middleclass people have seen their income levels soar. The developing countries would respond very positively to the differentiated quality products and really leverage from the higher quality and reasonably priced products which would raise their standard of living. Li & Fung should penetrate these growing markets by acquiring companies and enhancing relationships with higher end retail stores. Along with
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