...Li Ning Company Limited Philip Warwick, Durham University Business School January 2013 Background Li Ning Company Limited (LNCL) is China’s largest sports apparel firm and in Li Ning, it owns what is one of China’s most well known home grown brands. Despite its strength in China, few business analysts outside China and Hong Kong are familiar with LNCL and few sports enthusiasts are aware of the Li Ning brand even though they have probably seen it being worn by sports men and women at major sporting events in recent years. In 2007, The Economist predicted that Li Ning was going to become one of China’s new global brands on the back of the 2008 Beijing Olympicsi. However, LNCL has failed to take-off and in 2012, year of the London Olympics, it suffered a 15 per cent fall in profits and significant losses across most of the group’s business divisionsii. LNCL, takes its name from the company’s Chairman Li Ning, a triple gold medal winning Olympic gymnast, who founded the sports goods company in 1989iii. He is the man who high-wired around the Beijing Olympic stadium, to light the flame at the 2008 opening ceremony. The Company has several divisions, the Li Ning brand (above), which specialises in sports shoes and apparel for its five key sports: Basketball, tennis, running, football and fitness. Other divisions include Double Happiness, (table tennis), Kason (badminton) and joint ventures with Aigle a French outdoor sports brand and Lotto an Italian Football brand. Li Ning retail...
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...However, it’s a challenge for a Chinese company, because in recent years, many of Chinese companies have being gone abroad, to exploit overseas market. Now, choose one Chinese company(for example Li Ning’s international marketing strategy) marketing consumer goods to American consumers, and you are the marketing manager responsible for American market. Please complete the tasks as following: Task 1 Analyse the concepts and process of marketing, and you are required to do these considering the company you choose. To do this, you should introduce your company briefly first. Li Ning Company Limited is one of the leading sports brand enterprises in the PRC, possessing brand marketing, research and development, design, manufacturing, distribution and retail capabilities. The Group's products mainly include footwear, apparel, equipment and accessories for sport and leisure uses under its own Li Ning brand. The Group has established an extensive supply chain management system, and a distribution and retail network in the PRC primarily through outsourcing of manufacturing operations and distribution via franchised agents. The Group also directly operates retail stores for the Li Ning brand. The Group adopts a multi-brand business development strategy. In addition to its core Li Ning brand, the Group (i) distributes sports products under its Z-DO brand via hypermarket channel; (ii) manufactures, markets, distributes and sells outdoor sports products under the French brand AIGLE...
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...China Political factor: If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirements that the country require in Nike to overcome these barriers. International trade regulations The trade regulations in China are formulated in accordance with the "Foreign Trade Law of the People's Republic of China" in order to maintain foreign trade order and fair competition and to protect domestic industry. In 2011, Nike has difficulties to highlight the deep problems businesses face in manufacturing in China, particularly at a time of sharply rising costs and a stiffening legal environment. In its first country-specific supply chain report, which it said focused on China because of the forthcoming Beijing Olympics, Nike detailed the efforts it has been making to get suppliers to comply with its code of conduct and with Chinese law, including a program to monitor Olympics-related suppliers this year. Government attitude The Chinese government may have a love-hate relationship with the West — eager for Western technology yet threatened by democracy. Therefore, it is an disadvantage for Nike when expanding its business in China. But for Chinese consumers, Western goods mean one thing: status. China's biggest seller of athletic shoes, Li Ning, recently surrendered its top position to Nike, even though Nike's shoes — upwards of...
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...(Incorporated in the Cayman Islands with limited liability) (Stock Code: 2331) Mission Through sports, we inspire people the desire and power to make breakthroughs Corporate Profile Li Ning Company Limited is one of the leading sports brand enterprises in the PRC, possessing brand marketing, research and development, design, manufacturing, distribution and retail capabilities. The Group’s products mainly include footwear, apparel, accessories and equipment for sport and leisure uses under its own LI-NING brand. The Group has established an extensive supply chain management system, and a distribution and retail network in the PRC primarily through outsourcing of manufacturing operations and distribution via franchised agents. The Group also directly manages retail stores for the LI-NING brand. The Group adopts a multi-brand business development strategy. In addition to its core LI-NING brand, the Group distributes sports products under its Z-DO brand via hypermarket channel. The Group has established a joint venture with AIGLE under which the joint venture has been granted an exclusive right by AIGLE to manufacture, market, distribute and sell outdoor sports products under the French brand AIGLE for 50 years in the PRC. The Group has a controlling interest in Shanghai Double Happiness, which together with its subsidiaries are principally engaged in manufacture, research and development, marketing and sale of table tennis and other sports equipment under the Double Happiness...
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... 6. Conclusion and Recommendations 26 Reference 27 Appendix 1 30 Appendix 2 32 Brand Experience: How do Sensory Experience, Affective Experience and Behavioral Experience Affect Brand Loyalty? 1. Introduction Nike sport shoes are one of the most popular international brand’s sport shoes in China. Li-Ning, which is the local brand in China, is only the third popular sport brand in China (McKenzie, H. 2006). There are different kinds of experiences after wearing these two brands’ sport shoes. Sensory, affective and behavioral experiences are three aspects of brand experiences (Brakus, Schmitt.H & Zarantonello, 2009). In fact, few years ago，some scholars has pointed out that the brand experiences can affect the loyalty to the brand’s product (Simmons, 2009). Also, we study in this topic in more specific way, both design and store environment are belong to sensor experience. (Bartholmé, 2009) Affective experience includes happy and proud. The purposes of this study are going to find out that what kinds of variances of brand experiences make Chinese prefer to buy more Nike sport shoes rather than Li-ning sport shoes and why are they give the loyalty to Nike...
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...Ateneo De Manila University Rockwell Center, Makati City GRADUATE SCHOOL OF BUSINESS MBA Program STRATEGIC MANAGEMENT PAPER XTEP Company Advised by: Professor Winnie M. Constantino Prepared by: LIN LI April 11th, 2011 TABLE OF CONTENTS ACKNOWLEDGEMENT………………………………………………………………………………………………………………….4 EXECUTIVE SUMMARY…………………………………………………………………………………………………………………7 I. COMPANY BACKGROUND..………………………………………………………………………………………………..9 1. Xtep Introduction…………………………………………………………………………………………………9 2. Main Brand Introduction………………………………………………………………………………………9 3. Current revenue size and profit……………………………………………………………………………10 4. Target Market……………………………………………………………………………………………………….10 II. RESEARCH METHODOLOGY AND LIMITATION.……………………………………………………………………11 2.1 Research Design……………………………………………………………………………………………………..11 2.2 Scope and Limitation………………………………………………………………………………………………11 III. VISION / MISSION……………………………………………………………………………………………………………..12 IV. EXTERNAL ANALYSIS………………………………………………………………………………………………………….14 1. Economic Performance and Forecasts….…………………................................................14 2. Political and Government Policies Aspects.………………………..………………………………….16 3. Socio-cultural Forces……………………………………………………………………………………………..17 4. Strong Retail Growth……………………………………………………………………………………………..19 5. Sportswear Market in China……………………………………………………………………………………20 ...
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...never came together Nike’s management feels that the World Shoe is “ahead of its time.” The revenues generated by Li Ning and Kangwei (local manufacturer of sports shoes) and imitations shoe manufacturers indicate that there is a market for high-volume, low-margin shoes and that companies apparently can make money in this space. The Presence Most of Nike’s problems would likely remain after the elimination of the World Shoe Project. Growth will still be flat, Nike’s imitation will remain, and an inability or unwillingness to experiment with new business models will continue to prevail. This suggests that there may be an opportunity to reframe the World Shoe concept. In addition, a new business model will need to be developed and effectively implemented if Nike is truly going to capitalize on this. Alternatives and recommendations for the future 1. Quit the World Shoe Project and come back to previous business model based on high-quality shoes for demanding customers. It safes operations with no risk but no taking opportunities in China as well. 2. Modification of the World Shoe Project business model with changing its assumptions by changing price and profitability measurement formula. The measurement should be based on the number of sales (not sales margins), thanks to that sales volumes contribute to the profits. The more the company sells, the better the results should be. 3. Create a distinct and vast promotional campaign: to change the local Chinese...
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...Managing people as demonstrated in A successful Chinese company By 11220400 201021021042 Submitted to Phil Shellhaas and Pam Whitehouse Date: 7, December, 2012 Managing people Year 2 Harper Adams University College Word count: 2977 Content 1. Summary........................................................................................................................2 2. Introduction................................................................................................................4 3. Management approach of people 5 3.1 The development of management approach in COFCO 5 3.2 6S management system 6 3.3 The five steps combination theory 6 4. The style of leadership 7 4.1 Transformational leadership 7 4.2 Human are the first 8 5. COFCO appraisal system 8 5.1 KAAPP evaluation system 9 5.2 Performance evaluation crisscross 9 5.3 Scientific evaluate operating procedures. 10 6. Rewarding performance 12 6.1 Adjustment based on appraisal results 11 6.2 COFCO salry system........................................................................................11 7. Employee involvement 12 7.1 Employees involved in the management 12 7.2 Enterprise activities 13 8. Learning, training and developing............................................................................13 8.1 COFCO special training method 13 8.1.1 “Enterprise zhongliang” magezine 14 8.1.2 COFCO academy 14 8...
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...Political factor: If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirementsthat the country require in Nike to overcome these barriers. International trade regulations The trade regulations in China are formulated in accordance with the "Foreign Trade Law of the People's Republic of China" in order to maintain foreign trade order and fair competition and to protect domestic industry. In 2011, Nike has difficulties to highlight the deep problems businesses face in manufacturing in China, particularly at a time of sharply rising costs and a stiffening legal environment. In its first country-specific supply chain report, which it said focused on China because of the forthcoming Beijing Olympics, Nike detailed the efforts it has been making to get suppliers to comply with its code of conduct and with Chinese law, including a program to monitor Olympics-related suppliers this year. Government attitude The Chinese government may have a love-hate relationship with the West — eager for Western technology yet threatened by democracy. Therefore, it is an disadvantage for Nike when expanding its business in China. But for Chinese consumers, Western goods mean one thing: status. China's biggest seller ofathletic shoes, Li Ning, recently surrendered its top position to Nike, even though Nike's shoes — upwards of $100...
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...Political factor: If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirements that the country require in Nike to overcome these barriers. International trade regulations The trade regulations in China are formulated in accordance with the "Foreign Trade Law of the People's Republic of China" in order to maintain foreign trade order and fair competition and to protect domestic industry. In 2011, Nike has difficulties to highlight the deep problems businesses face in manufacturing in China, particularly at a time of sharply rising costs and a stiffening legal environment. In its first country-specific supply chain report, which it said focused on China because of the forthcoming Beijing Olympics, Nike detailed the efforts it has been making to get suppliers to comply with its code of conduct and with Chinese law, including a program to monitor Olympics-related suppliers this year. Government attitude The Chinese government may have a love-hate relationship with the West — eager for Western technology yet threatened by democracy. Therefore, it is an disadvantage for Nike when expanding its business in China. But for Chinese consumers, Western goods mean one thing: status. China's biggest seller of athletic shoes, Li Ning, recently surrendered its top position to Nike, even though Nike's shoes — upwards of $100...
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...mindset. As Nike’s financial record indicates, market saturation and intense competition in Tier One economies has squelched Nike’s growth trajectory. While the Swoosh continues to penetrate typical Western markets, tapping into the increasing numbers of “middle and lower class” consumers in emerging markets could offer a phenomenal expansion opportunity if the firm can create the right business model. In addition, beyond the potential economic benefits from this venture, Nike’s World Shoe Project also offers a credible response to the labor issues that have buffeted the company, and leverages their efforts to minimize the environmental impact of their production activities. • Introduction/Background of the study The words “Just make me the shoe!” echoed down the boardroom table to Tom Hartage a 17 – year veteran of the running shoe company, Nike Inc. Tom Clarke, president of the company in 1998, had attended the meetings, seen the presentations and reviewed the numbers related to the market potential of China a rough gem with a booming population of 1.2 billion. He also knew that in many parts of the world, including China, people couldn’t afford Nike’s current footwear products. Clarke didn’t want to listen to any more speeches. He...
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...Structural Issues in HK Airlines HK Airlines Senior Management : |Member |Title | |Mr. ZHANG Kui |President, Hong Kong Airlines Limited | |Mr. WANG Liya |Executive Vice President, Hong Kong Airlines Limited | |Mr. WAN Ning |Vice President, Hong Kong Airlines Limited | |Mr. ZHONG Guosong |Vice President, Hong Kong Airlines Limited | |Mr. WU Hao |Chief Financial Officer, Hong Kong Airlines Limited | |Mr. WONG Ching Ho, Ben |Chief Operating Officer, Hong Kong Airlines Limited | |Mr. LI Dianchun |Chief Commercial Officer, Hong Kong Airlines Limited | HK Airlines Organization Chart As previous section 4 stated, the goal of our marketing plan is to explore more long-haul routes proactively by re-launch long-haul flight to Malives in order to increase our sales revenue by 1.2 percent over the upcoming three-year. We have three areas of objectives: Promotional, Gain Market Share and Substantially Profitable. We have...
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...Adidas Company Profile Adidas is a company based in Germany that primarily makes shoes and sports apparel that operates all over the world and one of the countries that Adidas does business in is China. Adidas uses a low cost strategy in China. Adidas believes that to get more business, it must lower costs to attract people who don’t make much money and those customers will see the quality of the product and continue buying products from Adidas. The cultural environment in China is different from Germany’s cultural environment. China has a strong structure where an order by a superior is expected to be obeyed fully and any questioning of that order would show disrespect. Seniority and age have a strong place in the power structure and Adidas must respect that know that the decision making process will be lead on the older and more senior workers whose orders are expected to be obeyed completely. China has some legal issues that are important and Adidas must recognize them. Adidas should be aware how disputes are legally handled, property protection through patents and trademarks, and needing representation. China is similar to Germany in some legal issues, but greatly varies in other aspects. Adidas is a wholly owned subsidiary in China since the nineteen nineties. Adidas also has licensing rights to Reebok in China since it bought out Reebok’s joint venture in China. Adidas can improve in China in a few ways. One example would be to buy out a few more companies...
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...and then analyses detailedly the diversified resistance which different upgrading paths might encounter, and put forwards the coping strategies separately from the enterprises and government point. Keywords - foundry; upgrading; resistance; dissolve. Introduction How Chinese manufacturing foundry enterprises realize their strategic transformation to achieve new developments is the focus of the public concerned. Scholars have made a lot of researches on the upgrading of the foundry mode. From the existing researching results, the majority primarily focused on researching its upgrading need and the path, seldom research the resistance maybe encountered in the process of the transformation and upgrading. For manufacturing companies, the upgrading resistance of the foundry mode is the first factor to be considered and if this factor is ignored, the upgrading target and the corresponding countermeasures will be the empty talk. The main foundry mode and upgrading path 1 The major foundry mode According to the different nature of the business which the foundry enterprises undertakes, the foundry model can be divided into three levels [1], namely: I)original equipment manufacturing(OEM). II)original design manufacturer(ODM). III)original brand manufacture(OBM). The main difference between OEM, ODM and OBM is the...
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...Political factor: If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirements that the country require in Nike to overcome these barriers. International trade regulations The trade regulations in China are formulated in accordance with the "Foreign Trade Law of the People's Republic of China" in order to maintain foreign trade order and fair competition and to protect domestic industry. In 2011, Nike has difficulties to highlight the deep problems businesses face in manufacturing in China, particularly at a time of sharply rising costs and a stiffening legal environment. In its first country-specific supply chain report, which it said focused on China because of the forthcoming Beijing Olympics, Nike detailed the efforts it has been making to get suppliers to comply with its code of conduct and with Chinese law, including a program to monitor Olympics-related suppliers this year. Government attitude The Chinese government may have a love-hate relationship with the West — eager for Western technology yet threatened by democracy. Therefore, it is an disadvantage for Nike when expanding its business in China. But for Chinese consumers, Western goods mean one thing: status. China's biggest seller of athletic shoes, Li Ning, recently surrendered its top position to Nike, even though Nike's shoes — upwards of $100...
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