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Li & Fung Case Study

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Li & Fung is an export trading company from Southern China that was founded back in 1906 by Fung Pak-Liu and his partner Li To-Ming. Li & Fung grew from a traditional export trading company to global supply chain management company it is today. After the passing of Liu, To-Ming decided to sell his shares. After both graduating from Harvard, Fung’s sons, Victor and William took over the company in 1974 and moved it to Hong Kong.
The Fung brothers were both highly intelligent individuals. They used new ideas and innovation to turn the company into a more professionally managed firm that went public in 1992 (MacFarlan, 2005). Li & Fung manages the global supply chain for high volume and time sensitive consumer goods for large companies …show more content…

I feel that what helped them move along was the trust they had with the companies they were already dealing with because they had proved to them that they were more than capable and also focused on value and loyalty. The company put their customers first. They still believed in the old-economy know how. Another thing that made them stand above some of the others is when Li & Fung started to focus on the small and medium-sized enterprises (SMEs). This was decided after they did some market research. These smaller companies want the same options as the larger companies when ordering their products. Lifung.com allowed the smaller companies to at least get some options for customization unlike other online companies. Usually the smaller companies are not able to compete because they do not have the options to customize their product as much. By lifung.com being flexible and innovative it allowed them to reach even more businesses.
In addition to focusing on SMEs, Li & Fung should focus on acquiring or merging with competing firms. The company should try to get into markets in developing countries such as India. It would also be beneficial for the company to try to break through into new products that are complementary to clothing such as footwear.
Overall, the company been successful with its online company. They made the customization options easy for the customers. The customers were able to complete their orders twenty-four hours a day

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