Giordano Case Write Up.docx

CASE WRITE UP

Submitted By, Atharv Chauhan Nitesh Panda Raghav Aggarwal

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Introduction and Company’s Profile Jimmy Lai was born into poverty in mainland China's Guangdong Province in 1948. At the age of 12 Lai was smuggled by his family into Hong Kong which at the time was still outside Chinese Communists' control. Through relatives Lai easily managed to ascertain work at a local textile factory and by the age of twenty had succeeded in becoming the company's General Manager. With his first end of year bonus of $1000, along with all his life savings, Lai decided to trade on the Hong Kong stock exchange. The gamble, although risky proved fortuitous and Lai turned his measly original $3000 investment into approximately $40,000 dollars. With that money Lai bought out the owners of the bankrupt garment company of Comitex in 1975 and began manufacturing sweaters. The company was an overnight success and had exports to major American retail brands of J.C. Penney, Montgomery Ward and several others. It was during this time that Lai made several trips to the United States. He was then exposed to many western retail formats which inspired him to get into the retail market himself. In 1981 Lai founded Giordano (named after a favourite New York restaurant) and opened several stores across Hong Kong. Giordano is the company that changed the rules of clothes retailing in the fast growing markets around Hong Kong, China, Malaysia, and Singapore. Before Giordano gave good quality and good service, cheaper clothes piled high and sold by sales assistants. Jimmy Lai founder and chief executive of Giordano changed all that when he saw that low level of service offered an opportunity in the casual clothes market and they can give value and service at low price and get better benefits. So he raised the wages of his sales people between 30 to 40 percent and allocates a big brother or big sister from among them to develop their quality skills. They trained the staff to talk to customers and seek their opinion on product and try to seek what are their wants and needs. This information urgently gives feedback to company designers and due to this urgent feedback company knows the wants and needs of the customer which is very beneficial for the Giordano.

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Giordano operations principals are summarized in its “Q.K.I.S.S” list which is given below.

 Quality  Knowledge  Innovation  Simplicity  Service In any case, certain focuses must be taken into reflection by Giordano Hong Kong with respect to showcasing techniques. Since their salary is generally higher than a large portion of their players, the ideal opportunity for activity of their picked advertising procedures would take longer than expected, other than being costly. However, since the objective of Giordano Hong Kong is towards a long haul predominance and security in the mold business, at that point the quest for these promoting efforts will be advantageous for the organization over the long haul.

Q1 Describe and evaluate Giordano’s product, business and corporate strategies? Product strategies:    

Value pricing Careful selection of suppliers Focused on specific items and products Concept stores

Business Strategies:   

Decentralized management and communication style Strict cost control Barcode system introduced which helped in inventory control

Corporate strategies   

Sell as many cloths through different brands to multiple age group Value added product offered to customer and obtaining competitive advantage Concentrated on retailing 3

Q-2 Describe and evaluate Giordano’s current positioning strategy. Should Gioranado reposition itself against its competitors in its current and new markets, and should it have different positioning strategies for different markets?  Current market Continue positioning strategy (value for consumer money) Do this by keeping customer service high and keep running lean to pass cost savings to customers  They need to exam possible positioning strategy for new markets  Cultural difference affects strategies  Different consumers are in every market and need tailored strategies.

Q-3 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? Key success factors  

System for recording inventory Advertising budget

Competitive Advantage  

The brands reputation Employees trained and hired by professional interview

Advantaged are sustainable because they are a leading corporation in the market. In the future they should focus on    

Making good investments Continue to improve customer service Budgeting finance Managing employees

They should also focus on expanding to countries they don’t currently have branches. For example, Europe.

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Q-4 Can Giordano transfer its key success factors to new markets as it expanded both in Asia and other parts of the world?  The competitive advantages will be more difficult for them to operate in other countries  They will need powerful software to create IT systems for such expansions, not every country follows the same code of conduct as Asian countries.  They are gong to have to differentiate their brand from their competitors and have more of an understanding of new customer tastes and preferences. Q-5 How do you think Giordano would have to adapt its marketing and operations

strategies and tactics when entering and penetrating your country?? Giordano would have to use the same marketing and operations strategies in my country as they did in other countries. The level of operations and marketing strategies depends on the country and its consumer purchasing behavior:    

Fast distribution channels with barcode managed inventory Adequate inventory control because of large population Giving value for money to their customer as many are middle income group people Offering a service differentiation.

Q-6 what general lessons can major clothing retailers in your country learn from Giordano for? According to the case:   

Adapt the concepts of value for money, product differentiation, and inventory. A successful business begins with the employees which leads to exceptional customer serviceEmployee delivery of service is an essential aspect that affects a company’s every day operations. Think big, Focus on globe strategies rather than region specific.

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Recommendation From the above analysis we have recommended for Giordano International Limited.  

  

It is fundamental to begin advancements to expand mark mindfulness when beginning organizations in new market. The area and site choice for building up Giordano's outlet in various nation will be basic. The organization ought to deliberately choose the site to position their stores which will be helpful for the clients. Customer is the key and primary factor for separation is client care. The organization needs to pursue modified client benefit methodology for each market fragment. Giordano needs to discover probability of redistributing to keep up little expenses Extensive statistical surveying is expected to examine plans and textures required by the objective clients

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