Product details

In 2012, Li-Ning Co Ltd (LNCL) was the third-largest sportswear company in China in terms of revenue, after international brands Nike and Adidas. Following its highly successful founding in 1990 by China's Olympic champion and company namesake, Li Ning, the firm attempted to formalize its organizational structure and establish a professionally managed organization, while dealing with the rise of well-established international sportswear brands in China like Nike and Adidas. By 2013, however, the company's performance had started to decline. LNCL found itself caught in a tough spot, with profit margins falling as the company was squeezed between international and local sportswear brands. Furthermore, its aggressive past expansion had resulted in heavy expenditures in market promotion, large unsold inventories, and low operational efficiency. What should the new leadership team do to turn around the company's performance?