ContentPakistan Textile Industry3Textile as the backbone of
Pakistan economy:4Nishat Textile Mills. Ltd5History5Over the
years5TEXTILE CAPACITY5EXPORT ORIENTED ORGANIZATION5COMPANY
INFORMATION6Plant location6Vision & vision Statement8Vision
statement8Mission statement8Input stage10EFE MATRIX FOR NISHAT
TEXTILE11IFE MATRIX FOR NISHAT TEXTILE13CPM (Competitor PROFILE
MATRIX)16MATCHING STAGE18SWOT MATRIX OF NISHAT TEXTILE19THE
STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX.21SPACE
Matrix of Nishat Textile21THE SPACE MATRIX23AGGRESSIVE
STRATEGY23THE BOSTON CONSULTING GROUP (BCG)
MATRIX24INTERPRETATIONS:26THE INTERNAL-EXTERNAL (IE)
MATRIX27INTERPRETATIONS:28THE GRAND STRATEGY
MATRIX29INTERPRETATIONS:29DECESION STAGE31THE QUANTITATIVE
STRATEGIC PLANNING MATRIX (QSPM)32INTERPRETATION:33
Pakistan Textile IndustryAccording to the textile ministry of
Pakistan, export targets for the year 2012 are US $ 14 billion.
However exporters fear a shortage of 30% ($4 billion) in textile
exports this year due to severe energy shortage. So, Due to severe
energy shortage, textile industry of the country is likely to miss
export target by US $ 4 billion during the current year.
Textile as the backbone of Pakistan economy: Textile sector is
the backbone of Pakistans economy and contributes significantly to
the export sector. Pakistan is the fourth largest producer of
cotton and third largest consumer. It contributes 8.5% to the GDP
and employs 38% of the workforce in the manufacturing sector. Its
share to the total exports is about 60%. It is ranked 12th in the
global textile exports. Despite facing numerous challenges due to
persistent power crisis, high cost of doing business, poor law and
order situation and host of other issues, Pakistans textile exports
managed to grow by 28% during the year 2010-11 as against the
exports of last year.At present an unorganized part of weaving
sector is producing comparatively low value added grey cloth. The
power loom sector employs poor technology; it faces scarcity of
quality yarn and lacks institutional financing for its development.
The growth record of Pakistan's textile industry shows a reverse
trend, especially in the weaving capacity of the mill sector, in
which the installed capacity of looms shrunk from 26,000 in 1978-79
to only 8,000 in 2010-11. The organized sector seemingly made a
shift towards cotton spinning rather than make efforts to develop
and modernize the weaving sector.Textiles Exports from Pakistan
Textiles constitute a major exporting sector for Pakistan, which
accounts for about 60%of the countrys total foreign exchange
earnings. The major export items are yarn; gray Cloth, finished
cloth, towels and bed sheets and their major customers are the USA,
EU, Japan and Hong Kong. Many textile exports take place under
quota arrangements With the EU and the United States. Gray cloth
constitutes roughly 16- 18% of total cloth.Nishat Exports from
Pakistan. Nishat gray cloth exports account for roughly 20 % of
Pakistani gray cloth exports. The firm has been exporting to the
USA for many years, and has only recently started to export to EU
countries. In Pakistan, the cotton crop season runs approximately
from August to March. Prices are generally high at the start of the
season in August/September, and fall later on as supply increases.
Following income tax law, the fiscal year runs from October to
September for textiles sector.
Nishat Textile Mills. LtdHistoryNishat Mills Limited is the
flagship company of Nishat Group. It was established in 1951. It is
one of the most modern, largest vertically integrated textile
company in Pakistan. Nishat Mills Limited has 199,536 spindles, 604
Toyota air jet looms and 40 Sulzer shuttle-less looms. The Company
also has the most modern textile dyeing and processing units, 2
stitching units and Power Generation facilities with a capacity of
89 MW. The Companys total export for the year 2011 was Rs. 35.610
billion (US$ 416 million). Due to the application of prudent
management policies, consolidation of operations, a strong balance
sheet and an effective marketing strategy, the growth trend is
expected to continue in the years to come. The Company's production
facilities comprise of spinning, weaving, processing, stitching and
power generation.Over the years1951Nishat Mills Limited commenced
its business as partnership.
1959The company incorporated as private limited company.
1961Nishat Mills Limited was listed on Karachi Stock
Exchange.
1989The Company was listed on Lahore Stock Exchange.
1992The Company was listed on Islamabad Stock Exchange.
1996Acquired the operating assets of Nishat Tek Limited and
Nishat Fabrics Limited.
2005Acquired the assets of Umar Fabrics Limited.
2008Acquired the assets of Nishat Apparel Limited.
TEXTILE CAPACITY Production process consists of spinning,
weaving, processing, and finishing. The processing includes dyeing,
engraving. The textile capacity of the group is the largest in the
country. An addition of 20000 new spindles, 100 new air jets looms
and new dyeing plant has increased the existing capacity of 24000
spindles, 740 looms and dyeing and finishing capacity of 5 million
meters. The group is the largest exporter of textile products from
Pakistan for more than a decade.EXPORT ORIENTED ORGANIZATIONNishat
mills limited are an export-oriented organization. Nishat mills
limited exports more than 90% of its products mainly to the Far
East, Europe and United States.COMPANY INFORMATIONBOARD OF
DIRECTORS: Mian Umer Mansha Chairman/Chief Executive Mian Hassan
Mansha Mr. Muhammad Nawaz Tishna (NIT) Mr. Khalid Qadeer Qureshi
Mr. Muhammad Azam Rana Muhammad Mushtaq Ms. Nabiha Shahnawaz
CheemaMILLS: Nishatabad, Faisalabad (Spinning units and Power
Plant) 12 K.M. Faisalabad Road, (Weaving units & Power Plant)
Sheikhupura. 21 K.M. Ferozepur Road, Lahore. (Stitching unit) 5
K.M. Nishat Avenue (Weaving, Dyeing & Finishing unit, Off 22
K.M. Ferozepur Road, Lahore. Processing unit, Stitching unit
andPower Plant) 20 K.M. Sheikhupura Faisalabad (Spinning unit)Road,
Feroze WatwanPlant locationPlant location is one of the main
long-term strategic decisions normally taken by top management.
Nishat mills limited is ideally located in, Niashatabad Faisalabad.
12- K.M Faisalabad road Shiekhupura. 21- K.M Ferozepur road Lahore.
5 K.M Nishat Avenue Lahore. Off 22.K.M Ferozepur road Lahore.
20-K.M Shiekhupura Faisalabad (ferozewatan)Main factory is located
at Niashatabad. It is a composite unit. Composite unit means all
the process i.e. from spinning to stitching takes place under one
roof. Product process includes spinning, weaving, processing,
finishing and stitching units.
Vision & vision StatementVision statementTo transform the
Company into a modern and dynamic yarn, cloth and processed cloth
and finished product manufacturing Company that is fully equipped
to play a meaningful role on sustainable basis in the economy of
Pakistan. To transform the Company into a modern and dynamic power
generating Company that is fully equipped to play a meaningful role
on sustainable basis in the economy of Pakistan.
Mission statementTo provide quality products to customers and
explore new markets to promote/expand sales of the Company through
good governance and foster a sound and dynamic team, so as to
achieve optimum prices of products of the Company for sustainable
and equitable growth and prosperity of the Company.
Mission statement analysis of Nishat TextileComponents
Costumers No
Products / services No
Markets No
Technology No
Philosophy No
Self-ConceptNo
Concern of EmployeesYes
Concern of Public Image Yes
Concern of public growth and profitabilityYes
Input stage
EFE MATRIX FOR NISHAT TEXTILE
KEY EXTERNAL FACTORS
WEIGHTRATINGWEIGHTED SCORE
OPPORTUNITIES
1) Organization can expand Product line 0.1030.3
2) Cost reduction by modern Technology. 0.0640.24
3) Capture new market segments around the world.0.0930.27
4) Hire more well-educated and experienced persons.0.0820.16
5) Organization can reduce the Cost by proper utilization of
Resources. 0.0930.27
6) Local market development0.0840.32
7) People prefer quality fabric( quality awareness)0.0740.28
THREATS
1) Export of raw cotton.0.083 0.24
2) Exchange Rate Fluctuations.0.052 0.1
3) Political instability. 0.042 0.08
4) Globally economic instability0.053 0.15
5) Energy crises. 0.064 0.24
6) New entry of competitors.0.073 0.21
7) Buyer needs changes.0.084 0.32
Total 1 3.18
Reasoning for the weight:The result for EFE matrix is 3.18 that
is really good. That is showing they can effectively take advantage
of existing opportunities and can minimize the adverse effect of
external threatsInterpretations: Opportunities: Product Expansion:
Currently the Nishat is not dealing in knitwear they can expand
their product line by producing knitwear. They have plants and the
extra cost for the production will be low forNishat. And they also
have bettermarket repute. Cost Reduction: If the cost of different
matters which is not utilizing properly is controlled by the Nishat
management they can produce more in a few costs. It has to develop
a further systematic process for controlling and managing
resources. New Hiring: They can take advantages by hiring more
skilled people and they should hire young, fresh and energetic
staff for their betterment. R&D and Global Competition: Because
of the research and development the design and the product ofNishat
is just satisfactory as compare to competitors globally andthey are
notfulfilling the demand of customer.Threats: Political
Instability: Political instability effects the Nishat because of
the quota system the company can be restrict by the government to
export. Unpredictable Government Policies: Government policies are
changing day to day so it is a threat for the Nishat to survive in
such a changeable situation. Economic Instability: Because of the
economic instability the Nishat affected a lot. Dumping system
which is rising on dailybasis in the world can create many problems
for the company and any uncertainty in the world like 9/11 may
affect also the overall export. Energy Crisis: energy crisis
prevailing in the last five years is also creating a pathetic
situation even for the big giant like Nishat to survive.
IFE MATRIX FOR NISHAT TEXTILE
KEY INTERNAL FACTORS
WEIGHTRATINGWEIGHTED SCORE
STRENGTHS
1) Latest mechanized machinery. 0.08 3 0.24
2) Adequate financial resources. 0.09 4 0.36
3) Competitive advantage. 0.10 4 0.4
4 Equipped with MIS system 0.07 3 0.21
5) Own power generation plant. 0.08 4 0.32
6) ISO 9000 & IKO certified. 0.06 4 0.24
7) Biggest composite unit. 0.08 3 0.24
WEAKNESS
1) Centralized Decision making. 0.06 4 0.24
2) Weak image in International market. 0.07 2 0.14
3) Lack of benefits & reward to employees. 0.08 3 0.24
4) High employee turnover. 0.09 3 0.27
5) High production cost. 0.04 2 0.08
6) Small international market share 0.06 3 0.18
7) Less promotional activities. 0.04 4 0.16
Total 1 3.32
Reasoning for the weight:For the matrix the average score is 2.5
and our score is 3.32 which really good so this good score show a
strong internal position of theNishat textile. This means that
theNishat textile is above in its internal
strength.Interpretations: Strengths: ISO Certification: Nishat
textile is certified underISO9001-2000 and so it meets the
requirement of international standard and has a value in the mind
of concern people. Adequate financial resources. Modern Technology:
They are using modern looms which they have purchased from Japan
and France. And by using that latest machinery the productivity of
the employees are very high. Business Giants: As we know that
Nishat is a big giant in industry and they are enjoying a
competitive advantage. The owner of the Nishat is one of the
richest persons of the Pakistan and they have more plant and
investment in other industries like cement, Bank, They have
adequate financial resources to meet theirrequirements. Because it
is an old textile and it has still keep its position in the textile
market on all others competitors in the nationwide whichis its
competitive advantage MIS management: They have a management
information system by which the departments and employees are
connect with each other and they have a data ware house by which
they can share their resources easily. Power Generation: They have
own power generation plant and Nishat is the pioneer in the private
organization who start the power generation. And also selling to
the WAPDA Its produced power.Threats: Centralized Decision Making:
The decisions are made by the upper management which is weakness of
the Nishat because they have no proper idea aboutthe situation and
their decision can be not fruitful for the company. Scarce Resource
Availability: Because of the other textile specialized countries
like China, Bangladesh etc. the international image in the textile
sector is very weak. Those countries providing cheap product to the
market than Pakistan textile industries because of the resource
availability and cheap raw materials. Small Market Share: Although
Nishat has very strong in the national wide but it has small market
share in the global textile industry due to the sound competitors
like china, and Bangladesh etc. Weak Promotional Strategies: The
advertising and promotional cost of the Nishat textile is very low
it can take advantage for more turnouts. Weak Reward system: Some
facilities that other providing to their employees like Transport
and medical fee etc. Nishat notproviding to their employees because
of which the productivity of the employees decrease.
CPM (Competitor PROFILE MATRIX)Critical Success FactorsNishat
TextilesKohinoor Textile Mill
WeightRatingScoresRatingScores
Customer Satisfaction0.3030.941.2
Global Expansion0.0530.1540.2
Market Share
0.0520.1030.15
Pricing
0.1040.430.3
Conformance to standard0.3041.230.9
Promotional Activities0.1030.3020.2
Persuasion0.0540.2030.15
Organizational involvement of employees0.0530.1540.2
Total1.003.43.3
Evaluation As we know that competitive profile matrix identifies
firms major competitors and its particular strengths and weaknesses
in relation to a sample firms strategic position. Comparisons been
made on the basis of the strengths and weaknesses encountered by
careful in depth analysis of competing firms. We have grouped the
strengths and weaknesses of existing firm Nishat mills in order to
compare the ratings and weighted scores with its rivalry potential
firm Kohinoor textile mills. This comparative analysis provides
important internal strategic information. In our case the two most
important factors to being successful in industry are gaining and
maintaining Customer Satisfaction and Quality as indicated by
weights of 0.30. As satisfaction of prospective customers plays
vital role in enhancing the sales and building reputation of the
firm and Quality provides as a means of excellence in the product
or service that fulfills or exceeds the expectations of the
customer. Nishat mills is strongest on maintaining quality control
standards under the ISO stated standards and is indicated by the
rating of 4 whereas the competitor firm is a step behind in
adapting to ISO quality management systems . The company has a
diverse customer base with sales in both the local and export
markets. The main international markets include Asia, Europe, USA
and Australia. Kohinoor has a diversified customer base because of
its association and partnership with most of the top leading brands
of the world which has strong persuasion and brand image in market
place. Zara, old navy , champion , Dockers ( san Francisco ) ,
wrangler, Levi Strauses signature, banana republic, Yakka ,Li &
Fung Limited, Jc Penney ( everyday matters ) , Dickies, fruit of
the loom, Payless (shoe source). Kohinoor is strongest in retaining
more customers and is strongest on customer satisfaction indicated
by rating of 4 as compare to Nishat with rating of 3. Overall
Nishat is strongest as indicated by the total weighted score of
3.4
MATCHING STAGE
SWOT MATRIX OF NISHAT TEXTILESTRENGTHS____S
Latest mechanized machinery adequate financial resources
Competitive advantage own power generation plant ISO 900 and IKO
certified Biggest composite unit Equipped with MIS system
WEAKNESS____W Centralized decision making Weak image in
international market Lack of benefits and rewards to employees High
employee turnover Small international market share Less promotional
activities High production cost
OPPURTUNITIES____O Organization can expand its product line Cost
reduction Cotton cloth export also export also increased to $1.13
billion during this period as compared to $1.03 billion in 2000-01.
The future in the UAE markets appears promising Capture new market
segments around the world Local market development Organization can
hire more experienced trainers and skillful employees Government
could apply sustainable policies for the interest of exporters and
investors
THREATS___T Buyers need change Political instability Global
economic instability Export of raw cotton Energy crises Entry of
new competitors Exchange rate fluctuation
SO STRATEGIES Technical filtration with the help of Nishat's
mechanized machinery can help the company achieve expansion i-e
through expanding its current product line. (S1, O1) Nishat can
gain competitive edge through cost cutting by the proper
utilization of financial resources. (S2,O2) Using the company's
competitive advantage over other firms Nishat can focus on local
market development as well as capture new market segments around
the world. (S3,O5,O4)
ST STRATEGIES By capitalizing on the latest mechanized machinery
Nishat can effectively meet the changing needs of its buyers(S1,T1)
Keeping in mind Nishats competitive advantage and reputation in the
textile industry new entrants would find it a big risk and will be
hesitant before entering the industry so sustainable competitive
advantage would be best policy here(S3,T6) Keeping in view the
energy crises Nishat set up an independent power plant which allows
automation and uptime flexible production of products(S4,T5) Nishat
is a trendsetter with adequate financial resources which
facilitates it to introduce innovative strategies that can meet the
changing demands of the customers(S2,T1)
WO STRATEGIES Competitively capturing new market segments will
result in strong market image internationally(W2,O4) Organization
can reduce operating cost by considering employees suggestions and
providing both financial and non-financial benefits hence boosting
up the morale which in turn increase employees
motivation(W3,O2)
WT STRATEGIES By focusing on strong brand endorsement by
international and national models to gain customer loyalty in order
to minimize the risk of new entrants(W6,T6) Government should
develop conducive policies and appropriate measures should be taken
such as TQM programmers and, to ensure that standardized products
are being produced(W2,T2) Employees should be appreciated by the
organization and supervisors. Employee recognition programs should
be introduced in the organization. Such plans can motivate
employees not to just work for the sake of money but also for their
learning experience.So the employees will be encouraged to work
which in turn decrease turnover rate. (W4, T3)
THE STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX.
SPACE Matrix of Nishat Textile
FINANCIAL POSITION (FP)
Return on Investment.3Liquidity.4Leverage.4Working capital.2
13INDUSTRY POSITION (IP)
Resources utilization.4Growth potential.3Financial
stability.4Profit potential.5 16
STABILITY POSITION (SP)
Rate of inflation.-3Barriers to entry into
market.-2Technological changes.-2Price range of competing
products.-3-10
COMPETITVE POSITION (CP)
Product quality.-3Market share.-1Technological knowhow.-4Product
lifecycle.-4-12
CONCLUSIONS
SP average is -10/4 = -2.5
IP average is +16/4 = 4
CP average is -12/4 = -3
FP average is +13/4 = 3.25
Directional Vector Coordinates:x-axis: -3 + (+4) = 1 y-axis:
-2.5 + (+3.25) = 0.75
THE SPACE MATRIX
CONSERVATIVE6AGGRESSIVEMarket penetration 5 Backward, forward,
horizontal integrationProduct development 4 Market
penetrationMarket development 3 Market developmentRelated
diversification 2Product development 1 Diversification (related or
unrelated) 0 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 -1
DEFENSIVE-2COMPETITIVERetrenchment -3 Backward, forward, horizontal
integrationDivestiture -4 Market penetrationLiquidation -5 Market
development -6 Product development
This graph shows that Nishat textile is in the third quadrant
which is aggressive strategy quadrant.
AGGRESSIVE STRATEGYNishat textile directional vector is located
in the aggressive quadrant (upper-right quadrant) of the SPACE
matrix, Nishat is in an excellent position to use its internal
strengths to(1) Take advantage of external opportunities,(2)
Overcome internal weaknesses, and(3) Avoid external threats.
Therefore, market penetration, market development, product
development, backward integration, forward integration, horizontal
integration, or diversification can be feasible.
THE BOSTON CONSULTING GROUP (BCG) MATRIX
No of divisionDescriptionRevenues%RevenuesProfits%profitsMarket
shareRelative market shareGrowth rate
1Nishat textileRs.4856562.2484443%80.20.8%53.99%
2DGKCCRs.1857723.81711.5%40.30.4%14%
3Power plantRs.1090213.9629556.4570.10.7%-88%
TotalRs.78,044100Rs.11156100
Market Share High LowStars
High
IndustrialGrowth
Question Mark
Cash Cow
Low
Dogs
INTERPRETATIONS:Nishat Textiles is a composite textile unit of
Nishat Group. Total number of players in the industry is 60, and
Nishat Textiles is the market leader. It captures 12% market share
as a whole. In 2011, the industrial overall growth rate is 11%, but
that of Nishat Textiles is 24% as compare to the sales of
2008.Source: KSE (Karachi stock exchange) data for 2011, and
2012.The industrial growth is high and Nishat Textiles has high
market growth as well. So, it lies in the first quadrant (Stars) of
the BCG matrix. It implies that, company has the opportunity to go
for Market penetration to capture more shares in the existing
market by using new technology, and increasing promotional
activities. It also has a tremendous option of local market
development.Other feasible strategies may be the backward
integration to secure the supplies in order to tackle with the
threat of exporting of local raw material to foreign markets. Also
Nishat Textiles goes for forward integration to minimize its
weakness of transit time of goods and services to its
customers.
THE INTERNAL-EXTERNAL (IE) MATRIX
IFE TOTAL SCOREA- B- Strong 3.0-4.0 Moderate 2.0 2.99 Low 1.0-
1.99C- I
Grow and Build
II
Grow and BuildIII
Hold and Maintain
IVGrow and Build
VHold and MaintainVIHarvest
VII
Hold and Maintain
VIII
HarvestIX
Divest
D- High3.0-4.0
E- F- G- H- I- Medium2.0-2.99
J- EFE TOTALSCORE
K- L- M- N- O- P- Q- R- S- Low1.0-1.99
T- U- V-
INTERPRETATIONS:IFE Total Score (As per IFE Matrix) = 3.18EFE
Total Score (As per EFE Matrix) = 3.32W- As per IE Matrix, Nishat
Textiles lies in first cell, which implies that it should go for
aggressive strategies that are grow and build strategies. The
possible strategies for Nishat Textiles may be the integrations,
intensive, and diversifications.Nishat Textiles has the opportunity
to go for intensive strategies to capture more shares in the
existing market by market penetration, market development and
product development.Other feasible strategies may be the backward
integration to secure the supplies in order to tackle with the
threat of exporting of local raw material to foreign markets. Also
Nishat Textiles goes for forward integration to minimize its
weakness of transit time of goods and services to its
customers.
THE GRAND STRATEGY MATRIXRapid Market GrowthQuadrant II
Quadrant I
Quadrant III
Quadrant IV
StrongCompetitiveAdvantege
WeakCompetitiveAdvantage
Slow Market Growth
INTERPRETATIONS:Total number of players in the industry is 60,
and Nishat Textiles is the market leader. It captures 12% market
share as a whole. In 2011, the industrial overall growth rate is
9%, but that of Nishat Textiles is 24% as compare to the sales of
2008.NML got the edge of having their own power plant due to that
they are not suffering from industrial power crisis. And sustaining
their position in Market. As the market growth is high, and Nishat
Textiles has strong comparative position in the market. So, it lies
in the first quadrant of Grand strategy matrix, which implies that
it should go for aggressive strategies. The possible strategies for
Nishat Textiles may be Market Development, Market Penetration,
Backward and Forward Integrations. And Nishat is also implementing
these strategies by developing their market in a combination with
forward integrations by opening their retail stores named Nishat
Linen. They are also going in cotton production which is also a
competitive edge as they are controlling the whole supply chain.
And implying with quality sustainability to cope up with ISO
standards.
DECESION STAGE
THE QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)
Develop a shoe line for womenCapturing new market segments
around the world
Key factors
Weight ASTASASTAS
OPPORTUNITIES
1) Organization can expand Product line2) Cost reduction by
modern Technology3) Capture new market segments around the world4)
Hire more well-educated and experienced persons:5) Organization can
reduce the Cost by proper utilization of Resources:6) Local market
development:7) People spend on quality fabric
0.100.060.09
0.08
0.09
0.080.07
4-1
-
-
310.4
0.09
0.240.07
1-4
-
-
230.10
0.36
0.160.21
THREATS
1) Export of raw cotton.2) Exchange Rate Fluctuations3)
Political instability4) Globally economic instability5) Energy
crises6) New entry of competitors7) Buyer needs changes
0.080.050.040.050.060.070.08--22--3
0.080.1
0.24--22--2
0.080.1
0.16
TOTAL1.00
STRENGTHS
1) Latest mechanized machinery2) Adequate financial resources3)
Competitive advantage4) Equipped with MIS system 5) Own power
generation plant 6) ISO 9000 & IKO certified7) Biggest
composite unit
0.080.090.100.070.080.060.08243----0.160.360.3
243----0.160.360.3
WEAKNESSES
1) Centralized Decision making2) Weak image in International
market3) Lack of benefits & reward to employees4) High employee
turnover5) High production cost6) Small international market
share7) Less promotional
activities0.060.070.080.090.040.060.04-1--31-0.07
0.120.06-4--34-0.28
0.120.24
TOTAL1.00
Sum Total Attractive Score2.292.63
INTERPRETATION:The two strategies that are considered by Nishat
are achieving expansion through expanding product line and
Capturing new market segments around the world. According to Sum of
Total Attractive Score the company should go for capturing new
market segment around the world as its STAS is 2.63. The attractive
score are given on the basis of how much these factors affect the
strategy. the more they effect the higher the score is given. the
highest score given is 4 mean the factor is highly attractive to
the strategy. Nishat can expand product line by developing a shoe
line for women so it is highly effective strategy so it has been
given a score of 4. But by entering into international market
Nishat is not expanding the product line so a score of 1 is given.
By entering into international market Nishat will be able to
capture international market therefore has been given a score of 4.
The strengths and threats almost effect both the strategy equally
as both requires financial resources and machinery to be
implemented. These both strategies if successfully implemented can
lead to competitive advantage but of course only these two
strategies cannot gain competitive advantage but they can help in
gaining competitive advantage that is why they have been given the
score of 3. Financial resources is needed to develop new product
line and is also needed to enter into international market that is
why it has been given a score of 4. Threats of political
instability, global economic instability somewhat effect the both
strategy equally and buyers need change effect the strategy of
developing a new product line so has been given a score of 3.Weak
image in international market and small international market share
are affected by the strategy of entering into international market
that is why they have been given a score of 4 and 4.The strategy of
entering into international market is a attractive strategy for
Nishat to pursue.
