Porter's 5 Forces analysis of Global Supply Chain Management: Best Practices At Li And Fung Limited Case Solution

Disclaimer: This is only sample format for the case and not the actual case solution. Place your order on the website to get your own case solution originally solved. Buy Now

Home >> Ibs Center For Management Research >> Global Supply Chain Management: Best Practices At Li And Fung Limited >> Porter's 5 Forces analysis

Porter's 5 Forces analysis of Global Supply Chain Management: Best Practices At Li And Fung Limited Case Study Solution

A Porter's 5 Forces analysis of Global Supply Chain Management: Best Practices At Li And Fung Limited Case Solution might be conducted to create different methods utilizing the strengths of the company to obtain opportunities, overcome weak points and to minimize the threats. It could also be utilized to examine that how particular weaknesses resist specific chances and increase the risks. The methods prepared using the Porter's 5 Forces analysis of Global Supply Chain Management: Best Practices At Li And Fung Limited Case Solution are given as follows;
• Usage of strong international brand name position and financial resources in broadening towards potential markets.
• Unique brand name experience might assist the business to much better position itself in brand-new markets.
• Resistance in expansion in the potential international markets encouraging variety.
• High rates restricts the expansion in different Asian and African nations with low per capita earnings.
• Strong brand recognition, non-traditional ways of marketing and the distinct brand name experience could be made use of to reduce the risk from possible customers.
• Rigorous appearance policies might resulted in the consumer shift towards Victoria with high social duty.
• Minimal target audience might led to a decrease in the overall market share of the business.
These methods might assist the company to improvise its market position and be at the leading position in the market.

Financial Analysis

Financial analysis for Porter's 5 Forces analysis of Global Supply Chain Management: Best Practices At Li And Fung Limited Case Solution might be carried out to examine the availability of funds to the company that might be used in expansion towards international markets. The financial position of the company could be evaluated by using the information given up the case Exhibit 1. The ratios that could be considered in monetary efficiency analysis are given in the Table 1 below;

From the above Table 1, it could be seen that the company has a reasonable financial efficiency with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net earnings margin does not seems to be potential and the company needs to put efforts in increasing its revenues along with minimizing its operational expenditures to increase its profit margins.

Porter's 5 Forces analysis of Global Supply Chain Management: Best Practices At Li And Fung Limited Case Analysis

Segmentation

The segmentation analysis consists of the analysis of various business sectors of the company in domestic and the international, markets. Most of the business's Traditional shops lie in US consisting of above 500 stores in nearly each of the state of US. The business has also an international presence in 8 different nations with its highest number of shops situated in United Kingdom i.e. 21. The companyhas a total of 54 stores in global markets that is most likely the 10% of its stores in the US. It implies that majority of the revenues of the company come from the local markets. Moreover, the business is considering to broaden its shops into 7 more European and Asian countries. A chart showing the existence of the business in various global markets is given in the Appendix 2.

Targeting

The company targets its clothing brand name to the young, high and good-looking teenagers and kids that are thought about to be cool. This targeting policy is responsible for various distinctions in the business associated with its competitors. For example, the company hires excellent looking males and females for its shops and follows a stringent appearance policy to keep tourist attraction of attractive people towards its stores and provide an unique brand experience.

Positioning

The company has actually positioned its brand name as a high-end brand name targeting just a specific market section. The company with its non-traditional ways of marketing through designs and agents posters its brand name image as a high-end clothes brand targeted to the cool and good-looking characters in society. This market position attracts numerous elite individuals towards the brand name however it harms the business's position in different communities focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Global Supply Chain Management: Best Practices At Li And Fung Limited Case Analysis faces a great deal of competition in the market with the existence of various number of competitors in the market. A chart showing the close competitors together with their characteristics and the marketing technique is given up. it might be seen that the American Eagle Outfitters is thought about to be the greatest rivals for business with its marketing method related to the television programs. Space is also considered to be a potential competitor in regional as well as in global; markets as the company is thinking about to shift in the worldwide markets. In addition to it, Global Supply Chain Management: Best Practices At Li And Fung Limited Case Study Solution. with its versatile pricing technique and the Victoria's Street with its strong social status posture a severe threat to the current market share of the Porter's 5 Forces analysis of Global Supply Chain Management: Best Practices At Li And Fung Limited Case Analysis.

This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.