1. Li-Ning Company Limited is a Chinese company which makes athletic shoes and sporting goods. It endorses a number of athletes and teams, both in China and around the world.

2. Discontinuity

2.1 macroeconomic:

The speed of economic growth is slower which leads to less consumption.

source: national bureau of statistics of the people’s republic of China

The data shows that China’s yearly economic growth is decreasing in recent ten years. In 2015, economic growth is only 6.9%. This macroeconomic environment implies less production and less consumption than ever before. So the consumption in sportswear is decreasing as well.

2.2 microeconomic:

Multinational companies enter Chinese market, bringing more competition.

Increasing demand in sportswear and relative equipment

Large sportswear companies enter Chinese market, such as Nike and Adidas. They have high reputation among Chinese young people. They also have more capital, higher capacity of research and development, and richer marketing experience.

Also, Chinese people are aware of the importance of sports while they have spare time and money. So the demand of sportswear and relative equipment increases recent years. It is a large potential market for sportswear companies.

2.3 technology

smart band

new materials

3D printer

Smart band is a new technology that helps people to manage their exercise and lives. The band can be connected with applications in smart phones by collecting exercise data. Iwatch is a popular product so the amount of potential customers is huge. New materials such as nanotechnology also brings innovation to sportswear industry. The shoes or clothes can be lighter and breathable. 3D printing technology can be used for shoes printing. It can produce a pair of shoes that is perfectly suitable for one customer.

2.4 regulation

Regulations for supporting national sporting goods industry.

In 2014, the director of general administration of sport said the government hoped to develop sport industry and helped to increase the consumption in sporting goods. The regulation aimed to promote national sport brands and to create market conditions for potential companies.

3. connecting

3.1 asset light

reduce cost of complex supply chain

In 2015, Lining cooperated with JD in order to increase the utilization of inventory and efficiency of management.JD has a high effective logistic system. Lining, however, was not good at supply chain. JD helped Lining to integrate online and offline warehouses, making retailers and stores share same warehouses. This helped Lining to reduce the cost of rent and reduce excess inventory. Meanwhile, Lining increased the inventory turnover.

3.2 sophisticated nodes

Xiaomi – smart shoes

Apple – iwatch

Danskin – women’s activewear

Lining cooperates with Xiaomi producing smart shoes. The smart chip inside the shoes can record exercise data, and synchronize to applications in smart phones. So customers can monitor their exercise data.Lining can cooperate with Apple to upload sports applications and set up a sport online community to share their exercise data with their friends.

Lining also cooperates with Danskin which is a famous women’s activewear brand. Chinese urban women increase their awareness of sports and enjoy dancing and yoga. So it is a large potential market in China. This cooperation helps Danskin to adapt to Chinese market and Lining also can learn experience in women’s activewear design.

New nodes:

Cooperation with gyms

Cooperation with famous designers or stars

Experience store

More and more Chinese people go to gyms, so Lining can cooperate with large chain gym companies such as WILL’S and Tera Wellness. Lining supplies specific sportswear products in the gyms, in order to promote the brand and to increase sales.

Also, Lining can cooperate with famous stars or artists to design limited products. This will attract young people and raise reputation among them. Lining can learn and develop their design from the cooperation and combine the sport with fashion.

Meanwhile, Experience store can supply self-creating and 3D printing products. Customers can design and produce their own product which improves customer satisfaction. So lining can cooperate local galleries to design a special experience store.

3.3 keep orchestrating

Good relationship with partners

Create a win-win situation

Lining assembles and manages a network of partners to increase its sales. For example, Lining is not good at supply chain, the cooperation with JD creates a win-win situation for both companies.

3.4 transparency

clear mission

service policy

Lining aims to create a convenient and comfortable sport environment for all citizens. So it makes use of all possible ways to develop the customers’ feelings. It also has complete service policy to protect customers’ right.

4. deploying

4.1 platform business design - allocentric

All in the cooperation get the opportunity to display their ability in their own fields.

The involved companies make use of their advantages in their own fields. Famous artists or stars design the products. Lining uses it factory to produce them and JD uses its effective logistic system to delivery. Customers can try or create dream products in experience stores.

4.2 Unique & enabler processes

Limited design products

Special experience stores

Each node runs as an enabler

Limited design products are unique and customers can only buy them from Lining.

The 3D printing and products customizing makes Lining’s experience stores different from other similar brands.

Each node runs as an enabler and cooperates with each other in this network.

4.3 The paradox of complexity

Special technology

Lining has its special material technology and design which make their products lighter and more ergonomic than other similar products. The copyright of material technology protect Lining’s products.

4.4 Knowledge legos + plug & play

Easy to be applied

Easy to open more offline stores

Because the online shop has an existing platform, the company only needs to input what they want to sell. The running cost is low, and it is easier to add new arrivals to online shop. The supply chain makes Lining easier to open more offline stores, because they don’t need to prepare a new warehouse for the new store.

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