LI & FUNG Case Study Example | Topics and Well Written Essays - 1000 words

LI & FUNG - Case Study Example In Asia, there are high oil-related costs, yet oil is an essential aspect in the economy of most countries. The high cost of oil therefore, has a considerably adverse effect on most companies in Asia. This also has an effect on a company’s selection of best sourcing. In addition, this also influences transport and shipping costs, including freight and sea. Therefore, these among other aspects of the business environment in Asia have resulted in most Asian-based companies raising their costs. So far, Li & Fung has registered poor sales in the European market. This therefore, poses a risk to its overall profitability. In order for this company to realise an improved performance in its European market, there are different adjustments that it needs to undertake in its approach in this specific market. First, Li & Fung should be customer-centred, and be driven by the demands in the market. This means that the company must have a special interest in its customers in the European market. This includes understanding the needs of the customers in this market. By being customer-centred, the company will be able to deliver the products that are specific to the customer needs, thus ensuring customer satisfaction. Similarly, the company should understand the product demands of the customers in Europe, in order to avail them products that they require. Li & Fung should also focus on its major competency. The company should as well consider outsourcing its non-major activities. This way, the company will develop a positioning in the supply chain. This aspect will be important in ensuring that the company lessens its cost and time on non-major activities, while paying more attention to the core activities that are of importance to the customers and the company itself. Li & Fung should also ensure that the production lead time for products is short, as well as the delivery. This is important in ensuring that there