Giordano International Case Study Solution
Abstract
The case illustrates the competitive strategy of Giordano International, that it has pursued to proceed in the international markets and the home markets. The company started its operations in Hong Kong under the leadership of Lai, over the period of time the company shifted its strategy from premium pricing model to cost-leadership model, offering value for money to the customers.Such strategy has helped the company in sustaining the business against the SARS, economic downturn in 2007/2008 and other diseases that broke out in the Asian regions such as bird-flu.
In making itself a prominent and strong playerin the market, the company focused in its operational efficiency, value chain and supply chain efficiency.This included the installation point of salesprocedures at retailstores and inventorymanagement software’s to alert the sales staff before reaching safety stock and to analyze the customer buying patterns.
All these strategic mixes allowedGiordano to sustain its market share in the presence of the strongcompetitionfrom Bossino, U-right,Uniqlo, Baleno and others to namea few.Also, such cost-effective strategy allowed the Company to expandits global presence by entering into the emerging markets like China and India.
Though all these strategies and competitive advantage has allowed Giordano to leadthe local marketsand to sustain its position even in the times of economic downturn, however there needs to be the development of certain value proposition for the product as soon the market recovers from the economic downturn effects, and the shift in customer buying behavior occurs.
Keywords: Competitive advantage, Porter 5 force, PEST, sustainability
Analysis
7’Ps Model
Price
Giordano International offers the wide range of men and women casual dressing products in the markets.It offers vibrant colors and fits, stylish cuts shirts and jeans to the customers as a part of developing a product value proposition.It offers the clothing range under the different categories in Asia-pacific, the category includes the Giordano, Giordano women, Giordano junior and Giordano ladies.It caters the market through the cost-leadership strategy, in which it offers the value for money to the customers.Also, the product targets the multi-segment in the market including man, women, children and adults.
Place
The company operates in the high dense population areas. In doing so it opens up its flagship stores in each market to maintain its identity in the market. In addition, the company opened up the stores in high traffic are as and common busy streets to increase the virility and brand awareness of the Giordano International. Moreover, it targets the housing estates and retail stores also to sell its products to the end consumers easily, increasing the market penetration.
Price
The common pricing strategy is based on the concept of cost-leadership and economies of scale.It sells its product in the markets at reduced prices with high value and quality of the apparels.In order to offer more value and drive the sense of value for money, the company offers stylish design apparels to the end users so to drive the sales and to sustain its model in the low economic period.
Promotion
The Company spends heavily on the promotion of the brands under its portfolio. In doing so, the company utilizes billboard and TV as the core mediums to create brand awareness in the market. In the recent period the company also introduced the campaign“the world without strangers” such campaign on one hand developed strong market recognition while on other hand developed strong brand awareness for the product,since it targets the different segment with different ethnic background, driving a strong surge of sales towards the stores.
Physical Evidence
Under the physical evidence, the company has adopted the point of sales strategy and inventory management software to manage the inventory and demands supply of the apparels in the stores. This manages the stores’ space effectively, making the space to be utilized effectively for the product display.Moreover, since the company utilized the point of sales and inventory management strategy, it allows the company to analyze the sales pattern for a particular season and manage the inventory in stores and indistribution stores effectively, saving the tied up cost and inventory space in stores and distribution facilities.
People
People are the main factor of Giordano’s success and sustainability in the market.The company has a distinctive customer service that assistsand guides the customer throughout the sale process.In addition, since the company focuses on additional and extra level of customer service,it has given the decision making power to the managers to delight the customers. In addition, Giordano also empowers its employees to encounter certain mistakes, to let them learn new things.Such collaborative atmosphere and organizational structure allows Giordano to manage the brand’s excellence in the market and quality of the customer service in return.
Process
Under the process development, the company has developed easy point of sales check system that ease ups the shopping process and offers convenience to the customers. Such system also allows the customer to shop on the go, hence improving the ambiance and convenience of the stores.Moreover, the payment system is electric, using multiple cards and also the loyalty cards purchase that offers discount to the customers.
Giordano International Harvard Case Solution & Analysis
5C’s Model
Company:
Giordano offers the men and women casual apparel in the Hong Kong market.Over the period of time, ithas expanded into the global markets offering the same product line under the same brand strategy.However,in order to incorporate the economic changes, it substantially changes its pricing strategy in order to sync properly in the market.In addition to this, due to the pursuance of the cost-effective strategy in the market, Giordano has established strong brand image of“value for money” in the market. This has allowed it to develop the competitive edge in excusing the global markets while sustaining its business viability in the long term.Moreover, apart from the business strategy Giordano pursues an open culture in the organization,in which it offers the decision making authority and empowerment to the managers to cater the customer “beyond the line” tocreate a wow effect. This has helped Giordano to develop a substantial brand awareness and brand equity in the market, leading to the development of loyal customer base..................
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