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CHINA’S LI NING CHALLENGES NIKE & ADIDAS
Nadya A. Hamawy BA 190 - Strategic Management
University of the Philippines Prof. Mita Angela M. Dimalanta
Li Ning Company Ltd.Founded by former star gymnast Li NingEst. 1990Five core categories:
basketball, running, badminton, training and sports life
products
To overtake Nike & Adidas
2008 Beijing Olympics
Inventory pile-up
Rothaermel, F. T. (2015). Strategic Managment (2nd ed.). New York, USA: McGraw-Hill Education.
Rothaermel, F. T. (2015). Strategic Managment (2nd ed.). New York, USA: McGraw-Hill Education.
Questions1. 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.
1. At the close of the case, why was li ning experiencing a competitive disadvantage?
The problem of overexpansion– Re-strategize and
Rethink – Downsizing mode
of stores, distributors, and business segments
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?
Strategic Position
Rothaermel, F. T. (2015). Strategic Managment (2nd ed.). New York, USA: McGraw-Hill Education.
Strategic Position
Focused Differentiation
Strategic Position
Focused Differentiation
Strategic Position
Cost Leadership
The Link between strategic position and firm performance
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
Nike & AdidasGlobal brandsSpecialized Marketing strategies
The Chinese ConsumerLack 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
Moves –Use media –Continue e-commerce–Be innovative & creative
Recommendations– Focus and understand
a specific segment and build on that
– Unleash creativity and add quality
– Make a Chinese empire– Advertise and promote
SourcesAbillama, 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-aa89-00144feab7deZhu, 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
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