Li Ning

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Li Ning – Anything is possible

Since its foundation in 1990, Li Ning, a leading sporting goods company in the China, has been experimenting a high speedy development that became company in the dominant domestic sport brand. Part of this success has been possible due to company’s strategy, which is based in extensive retailing, franchised stores, concessions and sponsorship to many sport teams. However, during the Asian financial crisis in 1997, company decided to reorganize its operations and human resources. As a response of this situation, Li Ning announced a conscious decision to become more customer focused, and increased the resources allocated to consumer research and marketing. Besides this, brand internationalization also was taken in account as part of the business strategy. It is in this part of time when the big question came out, how to integrate Li Ning’s decision-making to ensure that new opportunities could be seized while making the most of the company’s current competitive advantages?

As I mentioned before, Li Ning is leader local brand; however, other well-known international brands as Nike or Adidas are its main competence. As a alternatives strategies, Li Ning’s has mainly focused in second- and third-tier cities where it lead with a market share of 20%. Company emphasize in these markets because of money’s value, with prices 30%-40% lower than the multinational brands. As another strategy, the Chinese company has selected as the most attractive market the students one, and finally, it also has developed a high type of “patriotism” or “oriental image” in all communication ways in order to differentiate the brand from competitors. Part of this “very Chinese or oriental image” is founded in their products, TV commercials and point of purchase. Chinese painting art and physical performances are some of the used elements that are synonym of a brand totally MADE IN CHINA.

Since my point of view, I think that all strategies mentioned...
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