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Step of Li Ning

Essay by   •  July 2, 2011  •  Essay  •  288 Words (2 Pages)  •  1,317 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.

S-Social

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.

T-technology

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.

http://www.chinadaily.com.cn/sports/2006-09/06/content_682799.htm

E-economy

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.

P-Political

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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