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Step of Li Ning

Essay by   •  July 2, 2011  •  Essay  •  288 Words (2 Pages)  •  1,887 Views

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S.t.e.p analyasis

There are many factors that can affect a company's overall profit and performance, some of which are beyond the control of the company. In the case of Li-ning, we will be focusing on the major external factors that may have caused the company's actual revenue and growth to differ materially from the expected future figures.


Nowadays, with the quickly development of the fast food industry, American are becoming more and more overweighed. As the official statistics shows, more than 30% people in U.S suffer from adiposis. The government officers and sanitationists devote more and more money and energy to proposing a healthy life style which including more sports. Going to gym, fitness club becomes one of an necessary part of life in Us. Thus, the demand for sports products grows dramatically.


The brand image of Li-ning in consumer's mind is a professional sports product that some athletes may use in the game.Li-ning spends a great amount of money on R&D.And Li-ning has applied lots of patented technology in production such as: Li-Ning Bow, Tuff EVA ,Breathe-gill, Cushion EVA, Breathe-zone and so on.


As the financial crisis happened in 2009,there is a severe recession in U.S.'s economy. The level of consumption in U.S falls down until now. Some consumers are tend to buy product at lower price.


In order to maintain the interests of domestic suppliers in U.S, the government set up the tariff wall when import products from china . The regulation increase the cost for Li-ning to export their product in U.S ,which will lead to a high price or low profit. For example, the U.S government levied more tax on textile beginning on 2009, which will influence the export of Li-ning 's sports suit.



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