Interpretation Of Lining'S Major Player: Does The Strategy Have The Same Resistance?

　　 Lining Products in the second quarter of 2011 Order The amount dropped by about 6% compared to the same period in 2010. Lining's share price plummeted nearly 16% after news broke out, setting the biggest single day since Lining's listing in 2004. Decline The market value evaporated more than 3 billion 500 million yuan a day. The second spanaction Japan continued to experience sharp losses, with a cumulative decline of 21.88% and a market value of 4 billion 896 million yuan on the two day. The direct cause of the stock price slumping is the reduction of total orders in Li Ning Co in the second quarter of 2011 and the closure of shops in large numbers, which verifies the failure of the extraordinary anti takeover in China. Just a few months, the stock market collapsed and exploded the business crisis hidden behind Lining. The development bottleneck of Lining, who had separated from him for more than ten years, once again hit Lining.

Take the old axe to kill the recruits

Since 2011, Nike and Adidas The performance of the two major spannational sports brands grew rapidly. The sales volume of the Greater China region increased by 36% in the first quarter of this year to 284 million euros. In the 3 months ended February 28, 2011, the income of Nike Greater China was 554 million US dollars, up 21% over the same period last year, excluding the exchange rate factor, which increased 18% over the same period. If Lining grows at the rate of 2010, the distance between Nike and Adidas will be widened. In addition, Li Ning Co's revenue in 2010 was 9 billion 479 million yuan, and the growth rate of 13% was less than 30% over the past 10 years, while the local brand Anta's 2010 financial year turnover reached 7 billion 410 million yuan, an increase of 26.1% over the same period. In terms of the number of sales outlets, Anta and Lining are relatively close, and the gap between the overall strength and the Li Ning Co is also narrowing.

Since the advent of Lining brand, there has never been any domestic brand that can withstand Lining's market offensive and achievements. However, with the strength of Anta brand, this pressure is approaching. Unprecedented competition and unprecedented suffocation make Li Ning Co have to make corresponding countermeasures. In May 23rd, Li Ning Co officials confirmed to reporters yesterday that Guo Jianxin, chief operating officer of the company, chief market official Shiwei and director of e-commerce Department Lin Lin left. On the one hand, it may be due to the pressure faced by the company's new business structure after adjustment. On the other hand, it may also be related to its career development prospects. Li Ning Co has approved their application. For the "decisive" departure of the three executives, we saw the Li Ning Co's "determination to go all out". However, it seems that the brilliant idea of "similar works" can still lead Lining to go out of the trough again.

Looking back at Lining's road to the frontier, he always can not do without a person, Chen Yihong, who is known as "the godfather of fashion". In the 15 years of development with Lining, Chen Yihong's executive role is deductive and vigorous. "The company's surname is Chen, but not Lee". Chen Yihong's status is displayed as Lining's "family." However, Chen Yihong did not lead Lining to break through the "1 billion" mark of Lining development, and also ended Chen Yi Hong's trip to managing Li Ning Co. Therefore, Lining to solve the internal structure of the company has become particularly important, that is, in the face of this opportunity to face, Lining ushered in a big shuffle from executives to subordinates. In this series of adjustments, the new round of management led by Zhang Zhiyong has become the turning point of Lining's development. This young man who served as general manager from 2001, with enthusiasm, courage and persistent pursuit of "system" and "system", has doubled the annual sales volume of the company in more than two years, breaking through the 1 billion yuan mark that Lining had been troubled for many years. Taking Lining out of the bottleneck of development, Lining went to a new height. From Lining's bold adjustment of internal structure and industrial development, we can see that the determination of the future is obvious. However, nearly all the corresponding strategies correspond to the difficulties faced by Lining's development nowadays.

The major is afraid of taking drug resistance.

Deng Shengxing, general manager of AMTD securities business department, said that since Lining began to improve its position and tried to compete with international brands, it has not been ideal in the same store sales and order growth. The company's share price performance is also not optimistic.

In this critical spanition period, there are high-level changes, which affect investors' confidence in the company, so the stock price will drop sharply today. He pointed out that other sports brands such as Anta (02020.HK) and so on, all focus on developing the two or three line market, and the order volume has maintained a double-digit increase. But Lining is trying to compete with the international brands in the first tier cities. "The company's brand positioning is problematic, and it is expected that the stock price will not be good again in the future".

In addition, the original functional and plane organization structure of Li Ning Co has changed to manage business according to sports category, such as badminton, running, basketball and so on. Horizontal departments have product development, market, sales, supply, etc., and Li Ning Co's internal management has become a matrix organization structure. The adjustment of the above organizational structure may lead to changes in the scope of power of senior executives, and then there may be the possibility of executives being "built up". The Li Ning Co revenue in 2010 was 9 billion 479 million yuan, and the growth rate of 13% was less than 30% over the past 10 years, while the local brand in Anta's 2010 fiscal year reached 7 billion 410 million yuan, up 26.1% over the same period. In terms of the number of sales outlets, Anta and Lining are relatively close, and the gap between the overall strength and the Li Ning Co is also narrowing.

Although Lining is at the top of the domestic sports brand, it is not expected that the "chair" will be handed over to the other side. Lining's future will be very difficult under other brands' equal attack. We can only predict the antecedents and consequences of the resignation of the executives, but before Lining's new leadership did not take over the senior positions, all of Lining's speculation was a mystery. Maybe Lining had already made up his mind, or Lining was already besieged, but Lining's spirit would never succumb to it. May Lining be like his slogan, "MakeTheChange!"