Recommendations of Global Supply Chain Management Best Practices At Li And Fung Limited Case Analysis

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Recommendations of Global Supply Chain Management Best Practices At Li And Fung Limited Case Study Help

On the basis of above internal and external analysis of the company along with the assessment of various options, the company is advised to consider alternative 3. As alternative 3 would allow the company to expand in global markets without any decrease in its regional incomes and any degeneration of its market position. The company could pursue alternative 1 which would allow the business to focus on potential global markets rather than the regional markets but as the business is extremely reliant on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Global Supply Chain Management Best Practices At Li And Fung Limited Case Help Stores

Growth towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a great choice for increasing the worldwide existence of the business. However, the closing of domestic shops could highly affect the earnings of the firm as above 90% of its shops are located locally and closing those stores would eventually lower the revenues of the firm. Furthermore, the company has a long term market position in US which can not be created soon in the brand-new markets. The alternative would help the company to expand in worldwide markets in addition to the elimination of problems raised in its local markets related to its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of new global markets.
• Boost in revenue from international markets.
• Elimination of concerns connected to diversity.
• Earnings diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Global Supply Chain Management Best Practices At Li And Fung Limited Case Help Stores

Alternative 2 consists of the intro of online market locations through generating a proper company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position a severe risk to the marketplace share of company. The rivals are moving towards click and Recommendations of Global Supply Chain Management Best Practices At Li And Fung Limited Case Help stores with Space presenting Piperline. This shift towards online markets might lower the profits for business. In this scenario the company might consider presenting Click and Recommendations of Global Supply Chain Management Best Practices At Li And Fung Limited Case Solution shops. These stores with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops. The advantages and disadvantages of option 2 are provided as follows;

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the market position
• Removal of brand Individuality
• Removal of the great store experience.
• Threat of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the business could consider, is to expand towards the international markets without closing its domestic stores that contributes to the huge part of revenues of the business. The pros and cons associated with Alternative 3 are provided listed below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Enlarging customer base
• Big Profits
• Exploration of brand-new worldwide markets.
• Increase in earnings from international markets.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of issues related to diversity.
• Differences in cultures could resulted in a failure of the brand especially in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to gain market share.



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