Listed on the Hong Kong stock exchange since 1992, Li & Fung (“LF”) is a Hong Kong based company established more than 100 years ago by Fung Pak-Lui and his partner Li To-Ming. LF provides a holistic supply chain management and value addition at each level of supply chain at a global level (see Appendix A). In its earlier life, LF did not owned any of the boxes of the supply chain. For example, if an order comes in, LF will facilitate the supply chain from raw material sourcing, manufacturing, quality control and finally delivery. Having grown considerably over the years, LF has 15,000 suppliers and operates in more than 40 countries worldwide and has a staff complement of more than 1400 employees (Elms, 2013). As per …show more content…
Transform LF into Online Business
The first alternative would be to implement the online model and transfer the whole LF business into online business. The opportunity here was that there was an emergence of online clients and doing so, LF would capture these emerging online clients (Osterwalder 2002). Offline clients would have no choice but to move online as they would not be able to get supplies offline. The downside of this is that LF has established a working relationship with its client through its traditional way of doing business which dates back to more than 100 years.
5.2. Outsourcing
LF can outsource the whole implementation of the online strategy to a third party company that will ensure efficient execution. In this way, there will be little interruptions on the company’s current operations as employees will focus on their day-to-day activities and will not have to leave their duties to implement the company’s online strategy. However, at the end of implementation without involvement, employees might not understand the new online way of doing things and may also end up rejecting the company’s online strategy.
5.3. Run a Click and Mortar Business …show more content…
This will ensure that the company adapt itself to the changes in the market conditions and client circumstances. The company should keep its traditional offline model as experience has shown that it is able to make revenue from it. Therefore, keeping it will ensure that the company remains profitable and furthermore, it is also not clear that the online model of the company will yield the desired business benefits. However, venturing into online business will ensure that the company keeps up with changes in the market and captures emerging online clients. At the same time, doing business offline will ensure that the company maintains its traditional culture and minimizes the effect of not succeeding in online