CASE BASED PRESENTATION

GIORDANO

PRESENTED BY

GROUP # 4

AVTAR SINGH ASHWINI KUMAR

DALBIR SINGH

ANSHUMAN GOYALRAVI VISHAL

SHARMA

INTRODUCTIONFounded by Jimmy Lai In 1980.

Started selling casual clothes.

Earlier focused on wholesale trade.

Began expansion through JV in Taiwan.

In 1983 started up its own retail shops.

In 1985 opened first retail outlet in Singapore.

contd..First of all positioned itself as pricy retail store.

Than as exclusively men’s casual apparel.

Than as unisex casual apparel.

And in the end repositioned itself as discounted unisex casual apparel.

ASSUMPTIONS

Might increase their operation worldwide.

Might face more competition in Asian market.

Might adopt RFID technology.

Increase in revenue in future.

SITUATIONAL ANALYSISInternal factors

o People.o Flat Organizational Structure.o Selection Procedure.o Training.o Performance Monitoring.o Retention of staff.o Inventory Control.oUse of Technology.

External Factors.POLITICAL

Tax structure.

ECONOMICAL

Asian currency crisis.Currency fluctuation.Rising cost of raw material.Labour cost

SOCIALTaste & preference.Culture.Convenience.

TECHNOLOGICALIT systems.Software's likePoint of sale.Enterprise resource planning.Web designing

FACTS & FIGURES

AWARDS.

o Ranked # 1 by Far Eastern Economic Review three years in a row.

o Excellent service Award in Singapore for three consecutive years.

o Store of the Year in 1991.o Best Shopping Experience – Retailer Outlet in 1996.o The Fourth Hong Kong Awards for services in 2000. o ISO9002 recognition.

contd..

PARTICULARS. GIORDANO.

Turnover. 3,092

Profit after tax & minority interests. 360

Working capital. 762

Return on total assets. 18.8%

Return on Average equity. 30.5%

Return on sales. 11.6%

Price/Sales ratio. 2.07

Sales Growth. 18.5%

No. of employees. 6,237

Questions & AnswersDescribe and evaluate Giordano’s product, business,

and corporate strategies. o Product strategies

Value for money product.

Excellent services.

Focused on core items.

Customer oriented.o Business Strategies

Differentiation.

Cost leadership

Niche

contd..Corporate strategies.

Did vertical integration.

Asian currency crises.

Concentrated on retailing.

Describe and evaluate Giordano’s current positioning strategy. Should Giordano reposition itself against its competitors in its current and new markets, and should it have different positioning strategies for different markets?

o Current positioning is discounted unisex casual apparel.o Target up-market may create confusion.oDifficult to make different strategies for different market.o Costly to acquire existing brand or setup new brand.o So go with old strategies.

What are Gioranado’s key success factors (KSF) and sources of competitive advantage? Are its competitive advantages suitable, and how would they develop in the future?

Giordano’s Key Success Factors

Sustainability in Existing Country Markets

Likely/Potential Future Developments of KSF

DESIGN Somewhat Sustainable Competitors could increasingly use technology to assist in their design process

Fast and Market Driven . Relies on effective organizational communications and other intangible sources of advantage, which are difficult for competitors to copy and implement effectively.

On Giordano’s part, effort must continually be made to obtain and utilize feedback from target customers.

Systematically collects ideas from customers, front line and experienced designers

Attracting and retaining good staff in design is important.

OPERATION, LOGISTICS & IT

Excellent Management of systems and integration of activities, e.g. stocks obsolescence costs are minimized due to:

Somewhat sustainable Other competitors would be likely to try to emulate Giordano.

Daily sales report (facilitated through IT & system)

Competitors would not be able to copy the implementation and integration of the systems on the scale that Giordano has done.

Needs to continually look for new ways to improve and build its advantage inside and outside its industry.

Limited stock in shops that are daily restocked.Rapid market driven manufacturing.

E.g. benchmarking against retailers like The Gap and Liz Claiborne, which are well known for their integration IT systems and deficient operations

BRANDING AND MARKETING GIORDANO’S BRAND.

Positioning: Helps instant transfer of key values Giordano offers (Value for money, good quality casual wear, excellent service).

Somewhat sustainable. Biggest threat comes from reputable players like The Gap.

Excellent brand recognition due to high advertising budget.

Brand Equity helps to build customer loyalty.

It could acquire another brand to serve higher end segment .

However, Giordano faces threat of strong competitors with similar positioning and also from brand dilution (e.g.”Cheap image”) as the market in general shifts upward along with increasing incomes.

Giordano should continue to invest in strengthening its brand equity through heavy advertising and excellent customer service.

CUSTOMER SERVICE

Fantastic customer service:Service orientation is pervasive in many of its activities.

Sustainable. Other competitors have not yet attempted to follow Giordano’s service strategy.

Recruitment, selection and training of staff.

A service culture is one source of advantage that competitors would find difficult to copy.

Empowerment and motivation of staff

However, Giordano needs to ensure that this culture can be maintained as it expands rapidly in existing and new markets.

LOCATION

Good, high traffic shopping and convenience locations.

Difficult to sustain.As Giordano’s sites are an important source of advantage, but other competitors could also do the same.

Competitors and new entrants will successfully compete for good locations

Could Giordano transfer its key success factors to new markets as it expanded both in Asia and rest of the world?

KEY SUCCESS FACTOR. TRANSFER POSSIBILITY

DESIGN. Likely.

OPERATIONS, LOGISTICS & IT. Likely.

BRANDING AND MARKETING. In ASIA – Likely.Beyond ASIA – Difficult.

CUSTOMER SERVICE. Likely.

LOCATION. Likely.

How do you think Giordano had/would have to adapt its marketing and operations strategies and tactics when entering and penetrating your country?

Consistency in service and merchandise quality.

Two dimensions of marketing and operations need to be addressed separately.

Concentrate on the similarities between countries.

Careful to consider national and cultural differences in some aspects of its marketing mix.

What general lessons can be learnt from Giordano for major clothing retailers in your country?

o Giordano managed to deliver a high level of service.o “Even the most sophisticated training program won’t guarantee the best

customer service.”o No question asked and no time limit’ exchange policy.o Careful staff selection.o Realistic Preview of Job and Organization.o Focus on Nature and quality of job experience.o Employee Empowerment.o Employee’s awareness of their roles in customer satisfaction and

Economic success.o Scorekeeping and Feedback.o Integration of employees into a winning team.o Concentration on Quality at the service core.

THANK YOU!!..