1, fierce market competition: With the increasing competition in the catering industry, Lizhuang Milk Swallow is facing fierce competition from its peers in the market. In order to maintain the competitive advantage, Lizhuang Milk Swallow needs to invest a lot of money and energy in brand promotion and marketing activities, which makes the operating costs of enterprises rise continuously.
2. Poor management: There are problems in the management of Lizhuang Milk Swallow, which leads to poor internal operation and low efficiency. In addition, due to the lack of effective risk control mechanism within enterprises, enterprises can not respond to market risks in time, thus getting into trouble.
3. Changes in the economic environment: With the changes in the domestic economic environment, the purchasing power of consumers has gradually declined, which directly affects the business income of Lizhuang Milk Swallow. Due to the break of the enterprise's capital chain, it was impossible to pay the supplier's payment and employee's salary on time, which eventually led to the bankruptcy of Li Zhuang's diary Yanzi.