Research On The Competitive Strategy Of Li Ning Company

Since the reforming and opening, especially after China accessing to WTO, China's economic and people's living standards has been rapidly improved, the successful holding of Beijing Olympic Games has greatly promoted the development of the sports industry. The development of sports industry provides a very good opportunity for the sporting goods industry development. At the same time, the world's major sporting goods giants have vied for China to compete in this attractive market. And many domestic sporting goods companies have also expanded the scale of themselves'. At present, the sporting goods market has entered a seriously competitive state. Li Ning Company, as China's first local sporting goods company in the competitive market, is growing into world-class sporting goods brands, to attain the goal, Li Ning Company must re-planned his business strategies, establish and maintain a competitive advantage.Firstly, this paper analyzes Li Ning Company's macro environment, then analyzes Li Ning Company's industry environment, and the sporting goods industry structure in the use of five generic competitive forces models based on the analysis, with particular emphasis on the huge boost that the large-scale sporting events on behalf of the Olympic Games bring to the sports industry and related businesses fields. Secondly, this paper reviews the development process and the present development of Li Ning Company and describes Li Ning Company's strengths, the weaknesses, and the opportunities, also the threats. Thirdly, the paper uses Porter's theory of competitive strategy and Prahalad and Hamer's core competence theory, based on the overall development of the current economic situation, combined with the sporting goods industry's structural characteristics and Li Ning Company's market positioning, this paper raises Li Ning Company's competitive strategy goals and differentiation strategy in order to nurture core competencies. To ensure the supporting measures of competitive strategy, the paper finally discusses the strategy implementation measures of Li Ning Company:to build Li Ning outstanding brand, to improve the ability of technological and product innovation, to improve the ability of professional sports marketing, to optimize the market-oriented supply chain management and to expand international business ideas. This paper describes the topic how Li Ning Company establishes and implements competitive strategy under the new competitive conditions, and gives some advice on how to enhance and maintain Li Ning Company's competitive advantage, also has a certain significance and application value on the local sporting goods company's sustainable development.