I have not attended classes for a week because I had to get back to Japan for job interview and the ceremony. Because of the long absence, I felt hard to catch up with the class, and I could not contribute class discussion.
Today’s Case was about Li & Fung, multinational clothes and toys company which originated in Hong Kong. Li & Fung’s business model is unique because it does not own its factory or store or natural resources. It acts in several place of value chain and make money though optimization the whole chain; with no-inventory, flexibility, and so on. Moreover, the activities are driven by customer value or satisfaction, with structure of organization and system of evaluation.
The lecture started with describing business model of Li & Fung by three students. The students wrote almost same picture and they were well. But I thought last one was best because it was so visual, and funny, and what’s more, explanation was good. I understood what is important in speech was calmness and emphasizing points of the opinion.
From this lecture, I got three things; figure, view as industry, and factor analysis. Figure means to judge and compare with number such as 3.5% margin comparing 1%, 5 weeks vs 3 months. Second means to have other view to see case; for example, firm level, industry level( of course, there are many dimensions of industry), country level, and so on. It provides valuable opinion and thoughts I believe. Last was about MECE. In every lecture, professor shows us the factors that we do not point out. If we have some framework or analysis of factors, we would fill all the factors.
Back to the Li & Fung, its point of business were: co-produce with customers, knowledge and information as competitive advantage, customer driven organization, support player of value-chain. I think this is just business model of 21st century, and in future, companies will change as this.
URL:http://www.market-modelling.co.uk/MMS/MMS_ValueChain.htm
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