IBUS 690 - Critical note Student: Siu Hong Leung
Li Ning Company Limited is a leading sports brand enterprises in China founded in 1990 by Li Ning, a good Chinese gymnast with a title of “Prince of gymnastics”. Li Ning Company Limited started with selling footwear and sporting apparel at that time. Li Ning Mission statement claims to inspire in people the desire and power to make breakthroughs through sports. Its vision is to be the world’s leading brand in the sports goods industry. The core values of Li Ning are athleticisms, integrity, professionalism, passion, breakthroughs and trust.
Li-Ning started to enter the international market since 2009. The first store in Portland is a trial for the company to test and get familiar with the U.S. market. Li Ning aims to expand the international market in this decade. In 2010, Li Ning has changed it slogan from “Anything is possible.” in Chinese to “Make The Change” in English in order to compete in the global market.
Situation and problem
Li Ning is focusing on the domestic market and the international market at the same time. After the great effort in advertisement and the effect of lighting the flame at the ceremony of 2008 Beijing Olympics, Li Ning ranked second place in the Chinese sportswear market in 2010 followed by Nike. However, it is predicted that Li Ning would lose the position to Adidas soon by the economists and analysts if Li Ning doesn’t take any action. With the recent news about the test result showing that the cloth in Li Ning has contained a high percentage of poison ingredients, NPE which is harmful to the reproduction system to human and the hormone inside the body, Li Ning’s business is adversely influenced seriously. Although many brands involve in this news like Adidas, Converse, Lascoste, Nike stays innocent in the sample test by Greenpeace, an environmental friendly community. Therefore, Li Ning definitely needs a longer time and a larger effort to unseat Nike in the...