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Li ning Challenges Nike & Adidas

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Li Ning Challenges Nike & Adidas by Nadya Hamawy, University of the Philippines Strategic Management

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Li ning Challenges Nike & Adidas

  1. 1. CHINA’S LI NING CHALLENGES NIKE & ADIDAS Nadya A. Hamawy BA 190 - Strategic Management University of the Philippines Prof. Mita Angela M. Dimalanta
  2. 2. Li Ning Company Ltd. Founded by former star gymnast Li Ning Est. 1990 Five core categories: basketball, running, badminton, training and sports life products
  3. 3. To overtake Nike & Adidas 2008 Beijing Olympics Inventory pile-up
  4. 4. Rothaermel, F. T. (2015). Strategic Managment (2nd ed.). New York, USA: McGraw-Hill Education.
  5. 5. Rothaermel, F. T. (2015). Strategic Managment (2nd ed.). New York, USA: McGraw-Hill Education.
  6. 6. Questions 1. At the close of the case, why was Li Ning experiencing a competitive disadvantage? 2. What are the strategic positions of Nike, Adidas, and Li Ning? Do you see a link between strategic position and firm performance? If so, what explains that link? 3. Why is it so difficult for Li Ning to challenge Nike and adidas even in China? Would you expect that the Chinese consumer would be more loyal to a Chinese brand? What moves could the company make that would build customer loyalty? What recommendations would you give Li Ning to achieve a successful turnaround? Explain. Rothaermel, F. T. (2015). Strategic Managment (2nd ed.). New York, USA: McGraw-Hill Education.
  7. 7. 1. At the close of the case, why was li ning experiencing a competitive disadvantage?
  8. 8. The problem of overexpansion – Re-strategize and Rethink – Downsizing mode of stores, distributors, and business segments
  9. 9. 2. What are the strategic positions of nike, adidas, and li ning? Do you see a link between strategic position and firm performance? If so, what explains that link?
  10. 10. Strategic Position Rothaermel, F. T. (2015). Strategic Managment (2nd ed.). New York, USA: McGraw-Hill Education.
  11. 11. Strategic Position Focused Differentiation
  12. 12. Strategic Position Focused Differentiation
  13. 13. Strategic Position Cost Leadership
  14. 14. The Link between strategic position and firm performance
  15. 15. Strategic Position & Firm Performance  There is a link between Strategic Position & Firm Performance  A firm’s strategic position contributes to the firm’s performance and dictates how the firm will work to meet its goals  How they position themselves within the market helps in penetrating a market  A firm’s positioning helps them capture a market
  16. 16. Nike & Adidas Global brands Specialized Marketing strategies
  17. 17. The Chinese Consumer Lack of loyalty – Based on a study by Bain & Company, 2014 Goal: To increase penetration of the market *Tier Classification AP, T. (2014, June 11). Chinese customers' lack of loyalty puts pressure on brands. Retrieved September 18, 2016, from http://www.scmp.com/business/china-business/article/1529584/chinese-customers-lack-loyalty-puts-pressure-brands
  18. 18. Moves –Use media –Continue e-commerce –Be innovative & creative
  19. 19. Recommendations – Focus and understand a specific segment and build on that – Unleash creativity and add quality – Make a Chinese empire – Advertise and promote
  20. 20. Sources Abillama, B. (2014, August 25). How is Nike Conquering the Challenging China Market? Retrieved September 18, 2016, from http://fashionbi.com/insights/marketing-analysis/how-is-nike-conquering-the-challenging-china-market AP, T. (2014, June 11). Chinese customers' lack of loyalty puts pressure on brands. Retrieved September 18, 2016, from http://www.scmp.com/business/china-business/article/1529584/chinese-customers-lack-loyalty-puts-pressure-brands CKGSB Knowledge. (2014, April 14). Chinese Sportswear Brand Li-Ning's Long Road To Redemption. Retrieved September 18, 2016, from http://www.forbes.com/sites/ckgsb/2014/04/14/chinese-sportswear-brand-li-nings-long-road-to- redemption/#784a38fd2d73 Einhorn, B. (2016, June 15). China's Wealthy Switch to Nike and Adidas for Inconspicuous Consumption. Retrieved September 18, 2016, from http://www.bloomberg.com/news/articles/2016-06-14/nike-adidas-replace-big-name-luxury-as-china- goes-casual Lee, X. (2013, November 4). Sportswear brand Li-Ning Struggles to Hold it Together. Retrieved September 18, 2016, from http://knowledge.ckgsb.edu.cn/2013/11/04/globalization/sportswear-brand-li-ning-struggles-to-hold-it-together/ Rothaermel, F. T. (2015). Strategic Managment (2nd ed.). New York, USA: McGraw-Hill Education. Waldmeir, P. (2015, January 23). Li Ning’s rise and fall marks a cautionary tale. Retrieved September 18, 2016, from https://www.ft.com/content/0ece54f6-a03d-11e4-aa89-00144feab7de Zhu, C., & Kwok, D. (2011, September 21). Analysis: Nike, Adidas trounce China sportswear players. Retrieved September 18, 2016, from http://www.reuters.com/article/us-china-sportswear-idUSTRE78K0TO20110921 Li Ning’s Website: http://ir.lining.com/en/global/index.php

Li Ning Challenges Nike & Adidas by Nadya Hamawy, University of the Philippines Strategic Management

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