The buyers of the services rendered by this industry include large multi national corporations that outsource their supply chain management activities as it is outside their core competencies. Some customers are extremely large volume buyers and as a result have a large amount of influence on the price of these services. The cost of switching between traders is small and the process quick, therefore buyers that are price sensitive are very likely to switch to those traders who can supply the same goods for a lower price. But even though there are many traders in the industry, only a handful have distinguished themselves because of their large global sourcing and manufacturing networks, such companies can even charge a premium for their services as they deliver extremely high levels of value and quality. Thus although buyers in this industry are price sensitive, there is a constant struggle between value for money (quality, timely delivery, customer service) and low cost.
The trading industry lacks any significant barriers to entry t...
... middle of paper ...
... network allowing them to organize their functions as if they were different steps in the manufacturing process. Typically they will only use 30-70% of the supplier’s capacity thus allowing for flexibility and access to new suppliers. This also prevented suppliers from becoming completely dependant on Li & Fung. Even the contracts that Li & Fung entered into with these companies had a clearly defined exit strategy that gave Li & Fung enough power to drop a supplier without hassle if the need be. In order to improve suppliers’ performance Li & Fung provided them with feedback on their production quality and timeliness, those suppliers that were performing poorly were dropped and new ones were found to take their place. Li & Fung was a “smokeless factory” which did not own any manufacturing facilities but was deeply involved in their management and production processes.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- The case study analysis the evolution of Hong Kong based Li & Fung Limited from a traditional trading company into a global consumer goods export trading giant and a manager of customers supply chains. It discusses in detail the company’s efforts to constantly evolve its business model in response to the changes in the external environment and the customer needs and preferences. The case study examines Li & Fung’s major strategies viz. Positioning itself as supply chain manager, integration of operational strategy with its organizational strategies, customer-centric organizational structure, technology and Internet initiatives, and globalization efforts, which contributed to the company’s em... [tags: Business Analysis Strategy]
1962 words (5.6 pages)
- Case Study: Effective Managerial Leadership The successful implementation of a public policy to solve a social problem will greatly depend on the abilities of a public administrator. Furthermore, numerous case studies can show examples of how a successful public agency administrator can achieve goals through dedication and commitment. The following discussion will present a thorough analysis of main political, social, and economic forces that affected Dr. Gayle in establishing legislation to fight the AIDS epidemic as is presented in the case study Managing Across Boundaries: A Case Study of Dr.... [tags: Case Study]
1201 words (3.4 pages)
- Case Study: A thirty six year old male has developed severe muscle weakness throughout the body. The condition began fifteen months ago with a left foot drop and within a year, he described difficulty with speech and swallowing, muscle twitching and cramping, and muscular atrophy throughout the upper and lower limbs. Within the last two months, his breathing has become more difficult, and there has been a noticeable difference in his voice. Prior to the fifteen months, he presented little to no symptoms.... [tags: Case Study]
1519 words (4.3 pages)
- How to Conduct and Complete a Case Study To conduct and complete a case study, one must understand what a case study is. It is one of the various methods to develop research and to obtain knowledge. Once the concept of what a case study is grasped, then one must comprehend the process that comes along with this research method. Ultimately, there are many different reasons, advantages and disadvantages to this method, but once completed, one will have an in-depth perception on the subject with in the case study.... [tags: Scientific method, Case study]
920 words (2.6 pages)
- Foxconn: Impact of globalization on labor conditions. Hon Hai Precision Industry Co., Ltd which trades as Foxconn Technology group or as the media calls it Foxconn has been in media limelight recently due to labor problems that have surfaced from the organization. Foxconn is a major equipment manufacturer supplier to electronics giants like Blackberry, Apple, Microsoft Xbox, Sony PlayStation and the Nintendo Wii. The internet has several articles and controversies regarding the deplorable worker conditions and cases of suicides by the workers.... [tags: Foxconn Case Study]
2511 words (7.2 pages)
- Leaders in the school have hard decisions to help make on a daily basis. They need to evaluate their decisions to make sure they are ethical and effective. Administrators need to listen to all sides of a situation and evaluate all options before they make a decision. This process is difficult because administrators need to make sure that all parties involved are satisfied with the decision that was formed. The Requested Change case study In the case study with Principal Miller, he had to make a decision to change the instruction program or to keep it.... [tags: Decision Making Case Study]
1523 words (4.4 pages)
- The case study that I will be looking at in this assignment is case study 2. This relates to Niamh and her partner who are pregnant with their second child. Their daughter from the previous pregnancy is now four years old, but the memories of the birth have caused anxiety to linger with them as they found it to be very traumatic. They are both very excited and happy to be pregnant again and are looking forward to the arrival of their second child. However, they both have very differing views on the delivery.... [tags: Psychology Case Study]
1457 words (4.2 pages)
- MANAGE AN E-BUSINESS SUPPLY CHAIN: Case Study No. 2 The business model that eBay utilises is based on a person to person model. This model is also used in other forms such as garage sales and flea markets. This business model for eBay has been very successful due to the fact that there is no middleman. The lack of there being a middle man cuts costs for customers as they are dealing with the sellers themselves, which allows customers to bid at prices they are happy with or find an item that satisfies the price bracket they are looking for or willing to spend.... [tags: Business Case Study]
737 words (2.1 pages)
- Course: International Business Management Activity: Case Study Company: PUMA |1924: |Rudolf and Adolf Dassler incorporate their first shoe company. | |1948: |Rudolf Dassler sets up his own company Puma Schuhfabrik Rudolf Dassler. | |1950: |Puma had established export ties to the United States, | |1959: |Rudolf Dassler's wife and two sons become part owners of the Puma Sportschuhfabriken Rudolf Dassler KG.... [tags: Business Case Study]
1746 words (5 pages)
- Symptoms of Problems at Texaco Identification of Root Problems and Unresolved Issues Highly qualified African-American employees filed a class action suit against Texaco in 1994, stating that the company failed to promote African-American employees to a higher position and it failed to compensate them in relation to Caucasian employees in similar positions. Throughout the investigation of Texaco if was found that documents would potentially damage Texaco were being withheld. When secret tape recordings from Texaco executives revealed not only vilely insensitive racial attitudes but it also demonstrated the eagerness of the executives to withhold any and all sensitive internal documents per... [tags: Business Case Study]
995 words (2.8 pages)