Li Ning Case
Group Assignment 1
Li Ning – Anything is Possible
Submitted by (Group 18): PGP-11-091 Abhigyan Mundhra PGP-11-097 Aditya Narang PGP-11-102 Anant Damle PGP-11-133 Parag Aggarwal PGP-11-141 Prerna Lotlikar PGP-11-148 Ramya V. Supraja
Is this company successful? Yes, the company is successful. And it is well envisioned and positioned to convert its opportunities into strengths. For Li Ning, its USP is the target segment based on geographical dimensions. So far, its penetration into the second-tier and third-tier cities has been the chief reason driving its success. Li Ning also provides a good value proposition, thereby providing a fine balance between quality and price.
The major challenge that Li Ning faces today is to increase its brand perception and appeal. Even though CEO Zhang Zhiyong attributes brand reputation as one of the major competitive advantage, they have a long road ahead to capture the ‘cool’ image that their competitors provide. Global giants such as Nike and Adidas are so far the strongest competitors for Li Ning and have an edge over it mostly because of the wide and exclusive range of product portfolio maintained by the two companies.
Further, the SWOT analysis for Li Ning is presented: Strengths | Weaknesses | * Scalable geographical presence * Extensive distribution channel with good ERP systems; well-skilled and trained labour * Strongest presence in the maximum growing markets of Tier-II and Tier-III cities * The “Made in China” positioning using oriental design attributes in brand imagery | * The image of Li Ning products being not so ‘cool’ as compared to competitors * Low focus on sports-wise segmentation in product lines for basketball and soccer * Non-aggressive sponsorship of sporting events in China; allowing competitors to take advantage * Low focus on high school students | Opportunities | Threats