1. What has been the historic strength and strategy of Li & Fung?
2. What capabilities of Li & Fung does StudioDirect.com ( lifung.com) leverage? What are the risks of their strategy?
3. What advice would you give William and Victor Fung?
Li & Fung has kept three strategies historically;
Organic Growth: Since 1995, the Group had grown organically by receiving more orders from existing clients and by securing new mandates from strategic clients. And since 1993, Li & Fung has adopted “3-year plan” system;
Acquisitions: Li & Fung’s acquisition strategy was based on buying rival sourcing companies. It had acquired Inchcape Buying Services, Dodwell, Swire Group, and Camberley from 1995 to 1999;
E-commerce: In 1995 Li & Fung launched an intranet to link the Group’s offices and manufacturing sites around the world and in 1997, Li & Fung launched secure extranet sites. Each site linked the company directly to a key customer and was customized to that customer’s individual needs