Swot Analysis of Li & Fung Ltd

2635 Words Nov 15th, 2012 11 Pages
Part I. Backgrounds Study:
Headquartered in Hong Kong, Li & Fung Limited’s extensive global sourcing network covers more than 80 offices in more than 40 economies around the world. The global trading company supplies high-volume, time-sensitive consumer goods. Particularly, garments make up a large part of its business which also covers the sourcing of hard goods such as fashion accessories, furnishings, gifts, handicrafts, home products, promotional merchandise, toys, sporting goods and travel goods.

Li & Fung plays the role as a supply chain manager across many producers and countries, covering over 80 offices and over 13,000 employees in more than 40 economies across North America, Europe and Asia. They provide product design and
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Li & Fung Limited has engaged in export trading of many different kinds of both hardgoods and softgoods, such as fashion accessories, furnishings, gifts, handicrafts, toys, sporting goods and traveling goods (see Figure 3). If one of them becomes unpopular, they can easily shift their focus on the other goods. Then, it does not affect the company’s profit won’t be impacted by the drop in sales or consumer loyalty of one single goods. Figure 3: Diversity in Li & Fung’s multiple brands supply

5. Complete chain of service
In the past, Li & Fung used to do simple searching of products. For example, a customer wants product X, and then their task is to find a factory that can do that. Now, Li & Fung expand their business. It provides a complete and one-stop shopping service for customers, that means from product design and development; through raw material and factory sourcing, production planning and management, quality assurance, and export documentation; to shipping. All the process is processed by them and it brings more revenue to them
(see Figure 4 at the right). Figure 4 : Supply Chain

6. Advanced information system and management
Li & Fung has established sophisticated & Internet-based systems to link up all its business partners, including customers, producers, distributors, logistics service providers etc. The application
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