Abstract

Li & Fung, the Hong Kong based exporter has introduced several innovations in product sourcing and distribution. Having started as a small trading company about 90 years ago, the company has grown to become a HK$42.63 billion company. The case describes the origin and growth of the company over the years and the challenges it faces in the current competitive environment, where both cost control and customer satisfaction are critical for success. The company has retained its entrepreneurial abilities even as it has grown in size. It has developed excellent relationships with suppliers and buyers. Li & Fung have also invested substantially in information technology to improve communications and serve customers better.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Li & Fung, Supply chain management, Entrepreneurship, Ready-made garments, Outsourcing, Hong Kong, Value chain configuration, Leveraging information technology, Customer satisfaction, Cost management, Export