Title: Li & Fung Trading Case Study

Essay Details

Subject: Business
Author: Gerald B
Date: December 25, 2016
Level: University
Grade: A
Length: 5 / 1307
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

The cost of switching between traders is small and the process quick, therefore buyers that are price sensitive are very likely to switch to those traders who can supply the same goods for a lower price. But even though there are many traders in the industry, only a handful have distinguished themselves because of their large global sourcing and manufacturing networks, such companies can even charge a premium for their services as they deliver extremely high levels of value and quality...

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Thus although buyers in this industry are price sensitive, there is a constant struggle between value for money (quality, timely delivery, customer service) and low cost. The trading industry lacks any significant barriers to entry thus allowing new comers to enter the market at any time. Furthermore, governments around the world are taking steps to increase international trade creating many new opportunities for new entrants into this market...

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