Case Study: Overseas Merging And Integrations Of Li & Fung Group

How to form its international competitiveness over the world? How to achieve the desired goal? This is the post-merger generally faced difficulties.This case look back forward Li & Fung Group,which witnessed the tradition of three generations over one hundred years,constantly undergoing reform and innovation,becoming into the role of a global supply chain manager from a simple purchasing agents evolve and in today's dynamic environment,Li& Fung Group continues to extend,complement and spread its supply chain so that it forms the world's unique core competitive advantage.By combining global value chain theory and diversification strategy under the merger integration,from summarizing Li & Fung Group's successful experience of overseas mergers and acquisitions,to analyze the reasons for its success,this case aims at offering a little thought and inspiration.First of all,the value chain diffusion applies to the same core elements(such as the same market and target customers)in the same industry.Mergers and acquisitions need to use economies of scale to develop their business and achieve higher market share.Secondly,the value chain complementary applies to different industries,due to the basic activities of the two companies and auxiliary activities vary widely,the value chain of the two companies need to be considered as a whole two subsystems.Thirdly,the value chain extension applies for two companies in different industries in the process of mergers and acquisitions to play their greatest comparative advantage of the link,together to complete the value of value-added.