Capabilities and Distinctive Competencies Based Case Study

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For instance, they might have a raw material spun into yarn or thread in one country, shipped closely to another country to be woven and dyed, then another country for zippers and buttons, then to yet another country for final assembly (Radhika, p. 8). When this is combined with a shorter product life cycle, globalism is served by the company's ability to keep up with trendy manufacturing needs and fickle fashion appetites.

Part 3 Relationship of Industry Life Cycle relating to strategies

Besides the shorting of the manufacturing process, the company has been able to keep up with the market that, since the 1990s, has a greater shortening product life cycle than ever before. Fashions are popular and become unpopular or blase quite frequently, and so the ability to design, source, and manufacture so quickly has been integral to the organization's success.

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Too, the company's ability now to network globally for the best possibly components now allows for even more competitive prices and push for excellence in products. Since the United States remains Li and Fung's largest customer, fashion trends and social networking issues drive the company's ability to transcend marketplaces and arrive on the scene prior to anticipate demand curves. Finally, keeping each of their divisions relatively small helps ensure that working towards a particular life-cycle that is sometimes measured in weeks rather than months, can remain competitive within the industry. It is this flexibility, access to materials and relationships with numerous production and manufacturing companies that allows Li and Fung to remain a global leader and extremely competitive (Alberts, 2010)

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