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 Analysis

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the company is advised to think about alternative 3. As alternative 3 would permit the business to expand in global markets without any decrease in its local earnings and any deterioration of its market position. The business could pursue alternative 1 which would allow the business to focus on potential global markets rather than the regional markets however as the company is extremely reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in company's revenue.

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

The business has a long term market position in US which can not be generated soon in the new markets. The option would help the company to broaden in international markets along with the removal of issues raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new international markets.
• Increase in revenue from worldwide markets.
• Elimination of concerns associated with variety.
• Revenue diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive revenues from the local markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low profits at initial 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

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might present a severe threat to the market share of business. In this circumstance the business might consider introducing Click and Recommendations of Global Supply Chain Management: Best Practices At Li And Fung Limited Case Analysis shops. These shops with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Hazard to the market position
• Elimination of brand name Individuality
• Elimination of the fantastic store experience.
• Risk of decline in elite sales.

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

Another choice that the business might consider, is to broaden towards the international markets without closing its domestic stores that adds to the huge part of profits of the business. The pros and cons associated with Alternative 3 are provided below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Increasing the size of customer base
• Big Revenues
• Expedition of new global markets.
• Increase in income from global markets.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of concerns related to diversity.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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