Executive Summary Giordano was founded in Hong Kong in 1980 by Jimmy Lai.

Giordano consolidated its position as a leading casual apparel retailer in Asia by offering customers value for money, excellent customer service, understand customer’s needs. Besides this, key success factors like stringent selection procedures and staff’s training, operating efficiencies, success inventory control to close integration of purchasing and selling functions and short product development cycle, helping company survived the Asian economic downturn and SARS crisis. The emphasis on service and the value for money concept had proven to be successful and made Giordano’s brand really stand out. How Giordano could sustain its past success was perhaps the most critical question confronting its management. These questions were how Giordano brand should be positioned against the competition in both new and existing market, how was the sustainability of Giordano’s key success factors and how was Giordano’s growth strategy in Asia as well as across continents. As the result, Giordano should have same positioning strategies in both new and existing market to avoid customer’s confusion. Sustainability of Giordano’s key success factors depends on ability of top management to continue invest in human resources as human resources are most valuable assets in an organization and ability of top management to make Giordano a customer – service orientated organization. The main idea of Giordano’s growth strategy should be to learn and develop rather than merely transfer or apply known or proven strategies. Statement of the problem Although Giordano had been extremely successful, the problems facing top management was how it could maintain this success in the years ahead. First thing was how the Giordano brand should be positioned against the competition in both new and existing market and if repositioning required in existing markets, would it be necessary to follow different positioning strategies for different markets (e.g. Hong Kong versus Southeast Asia)? Second thing was the sustainability of Giordano’s key success factors. Which of its key success factors or in other word, competitive advantages was likely to be sustainable and which ones were likely to be eroded? Third thing was would Giordano’s competitive strengths be readily transferable to other markets? Would strategic adaptations to IT strategy and marketing mix be required, or would tactical moves suffice? Top management should decide whether to use same positioning strategies for all markets or different positioning strategies for different market depends on market environment. Sustainability of key success factors depends on the top management ability to create element such as organizational culture which is more difficult for competitor to copy. In order for Giordano’s competitive strengths to be transferable to other markets, Giordano must be carefully considering national and cultural differences in other markets. Analysis of the causes of the problem

packaged solutions such as MS Office. This decision will cause problem with its current core target market segment. Once Giordano’s competitor learned it from Giordano. browsing. this will create so called “brand dilution” effect and caused Giordano keep on losing its loyalty customers. Giordano’s competitor could acquire integrated IT and logistics technology more easily and more costeffectively than ever before. Giordano should look into new ways of improving and strengthening its competitive advantages. Giordano still means for value of money concept. By applying different positioning strategies in different market may caused problem to Giordano also. drawing high-volume traffic and facilitating shopping. For example. eversmiling. differentiated with other brand. Furthermore. as Giordano’s Hong Kong outlets are shifting from value of money position to high end position but in other market. Furthermore.g. In addition. Giordano fought out it was losing customers who favored its value for money positioning due to this repositioning strategies. and even tried to sell both through the same outlets. high level of service provided to customers and sales staff is dedicated. This is because Giordano already establish it branding in value for money position which Giordano cannot easily change its positioning. good in marketing and strong brand positioning. However. rapid development in Internet and Intranet technologies. functionally value-added products and improvement on visual merchandising and apparel. Giordano have its key success factors like short product development cycle and fast market-driven new product development. different of positioning strategies will cause dilution of brand power in other market as well. This situation wills confuse customers in other market what Giordano stand for and inconsistency of brand image makes Giordano difficult to implement effective service strategies. For example. These positioning strategies had proved to be successfully in current market situation because delivery of quality service. Giordano should never satisfy itself in such rapid changing current market situation. this wills no longer Giordano’s competitive advantages. failure of “Gio Ladies” is because of repositioning strategy failed to differentiate its new clothing line from its mainstream product line. top . excellence in management’s swift cost-control strategies. For example. Same for Giordano’s key success factors. good location primarily in good ground-floor areas. excellence service with “no questions asked exchange” and “unlimited try-on” policy. broadband Internet access). and impulse buying. This repositioning became inconsistent with the brand image that Giordano tried hard to build over the years. Especially now a day due to globalization. well-mannered and helpful. and supporting telecommunications service (e. top management decided to reposition Giordano brand by upgrade its image and capture the up scale market segment. However.Giordano’s current positioning strategies are providing quality of products with value of money. point of sale (POS) and enterprise resource planning (ERP) software. its competitor are going to equip with these competitive advantages in very near future. customers are more mobile and moving around more frequently. As the results.

the use of Web-base Intranet systems in that particular country. If Giordano expand in market beyond Asia. It is difficult for Giordano to differentiate itself in these markets. “Simply Khakis” series and “Yoga Collection” series made Giordano’s brand really stand out among its competitors. logistics and IT systems would increase. By creating organization culture towards creativity and innovative. As all key success factors can be copying by competitor soon or later. Giordano needs to reconsider carefully before enter these market whether it can make profit or break even from such saturated market or not. expectations on service are higher and it may be almost impossible for Giordano to gain competitive advantages form those competitors which also provide high quality of service in these countries. some with similar positioning like The Gap in US. For example.management of Giordano should starting thinking how sustain their competitive advantages and further development of their key success factors. Giordano considered front-line workers to be its customer service heroes. The effect to achieve efficiency and lean processes in inventory management and distribution may become more difficult. there are difficultly to effectively transfer all key success factors to new market. Giordano should stay creative and innovative all the way like what it did in the past. it faces the situation of saturated markets and established competitors. In order to continue success in new market. the creativity and innovative ideas of marketing strategy cannot be stolen by competitors. Besides providing training to local staffs and monitoring their performance. because of different countries. On the other hand. Giordano will stay ahead than its competitor in market and continue to lead the apparel retailer markets. countries like Japan and US. However. Giordano provide sophisticated training program for its . “Bluestar Exchange (BSE)” series. which facilitate real-time information flow and inventory control across geographical boundaries may not sufficient due to inefficient information technologies system or frequent current blackout at that country. Giordano emphasis on customer service and the value for money concept had proven to be successful. Giordano with excellent of customer services need to consider how to transfer it recruitment and training skills to new market to the extent that it could maintain service levels as in Hong Kong. Decision criteria and alternative solution Giordano is looking for maintaining its success in future as leading apparel retailer in Asia market. Good responses of these campaigns and promotions shown that creativity and innovative are the core success factors of Giordano in apparel retailer markets. Giordano need to transfer its key success factor to new market. Geographically. In order to overcome this issue. “worldwide no questions asked exchange policy”. Several creative and customer-focused campaigns and promotions like “unlimited try-on”. Giordano also need to understanding different countries with different cultures require different service expectations and needs. Giordano positioned itself not only as apparel retailer. but further to include customer service as part of it products. the complexities of the operations.

Charles Fung. Giordano was able to find its position in apparel retailer market to cater to the needs of its budget-conscious customers who want affordable trendy casual apparel with reasonable quality. Giordano understand that the only way to keep abreast with stiff competition in the retail market is to know what its customer needs and serve them well. Guess. Giordano outlets in Singapore asked its customers what they thought would be the fairest price to charge for a pair of jeans and charged each customer the price they were willing to pay. Giordano focuses on the concept of value for money. Gucci. especially “attitude training” to make sure that its staff deliver high quality of service to its customers. Giordano should avoid repositioning in existing market and different positioning in other markets. Recommended solution. CK. For example. It will be safer to acquire another existing brand with different market positioning and already have its basic customer base. Besides incorporating service as part of it product. Giordano can gradually and slowly moved its positioning upwards to meet the rising spending power in existing market. Giordano can acquire another existing brand or launch a new product line.staffs. Executive Director and Chief Operations Officer (Southeast Asia) of Giordano remarked: “Even the most sophisticated training program won’t guarantee the . like Bluestar Exchange (BSE) to cater for new group of customers with its own positioning. Giordano would do better by keeping a consistent positioning. This can be seen from its dedication to train and motivate its front-line workers as well as introduce its “no questions asked exchange” policy. Giordano always focus on what its products mean to customers. keep its management focused on its core business strength which is value for money and quality merchandise. Giordano positioning strategy is a focused differentiation strategy. Giordano is constantly aiming to improve the value of product. In a long run. For capturing new market or different market segment. With customer service orientation philosophy. Charles Fung. in terms of the products it sells and the service it provides to customers. etc. Executive Director and Chief Operations Officer (Southeast Asia) described its excellent customer services as “service is in the blood of every member of our staff”. If not. Customers are always encouraged to exchange its products if the products fail to meet their requirements. The primary source of differentiation comes from Giordano’s commitment to quality. and send a clear and strong message to all its staffs and customers. this strategy is extremely risky due to the costs involved in building new brand with new positioning.. it is better to keep a consistent positioning with Giordano brand even it means to compete with other established brands on head to head basics. Simplicity and focus were reflected in the way Giordano merchandised its goods. However. parallel with its global brand acceptance and economic of scale in building their brand in global market. Giordano recognized the importance of limiting the organization’s expansion and focusing on one specific area. By adopting success experience from LV. implementation and justification In order not to dilute brand image.

sustainability of key success factors of Giordano highly depend on creativity and innovative of the organization. which will allow Giordano to transfer its key success factors more easily and build brand awareness more rapidly. They make exceptional service possible. Giordano will fail to transfer its key success factors to new markets. information was disseminated to production facilities in real time by IT system but if Giordano’s competitor installed the similar system as Giordano did. some competitive advantages can be Giordano key success factors now. Due to geographically problem. investment in human resources will help Giordano to create new competitive advantages to contribute in the key success factors of Giordano and stay ahead in future market.best customer service. but it may not be in future. Giordano needs to adjust and minor modify its system to suit local application. it will no longer Giordano’s competitive advantages and cannot become the key success factor of Giordano. Giordano will lose its competitive advantages or in other words. so it is impossible for Giordano to transfer its key success factors to markets like this. Giordano should consider not to enter markets like Japan and America to avoid unprofitable expanding. Besides this. However. IT facilities should be upgraded to cater for additional and more complicated information flow in from all outlets for real market analysis purpose. Giordano well established infrastructure like flat structure. In order to transfer key success factors to new or other markets. it faced saturated markets and established competitors with similar positioning. if Giordano enter the new markets like Japan and America. As mentioned before. For example. People are the key. the important point to keep Giordano’s competitive advantages is to continually invest in human resources. advantages and application of IT and customer service orientated philosophy play a major role in transferring these key success factors to new or existing markets. It’s the people who deliver that give it form and meaning. As the results. it may be more practical for Giordano to concentrate on the similar markets in few countries. Same situation happen for key success factor like excellent customer service orientation. good communication between departments. Unfortunately. Giordano should keep on commit to its excellent customer service orientation philosophy and well monitoring with SWAP analysis of market competition. Training is merely a skeleton of a customer service program. Although Giordano might lose some of competitive advantages in future. In the long run. One of the key success factors of Giordano is clear market positioning and strong branding power.” So although technologies can be owned by competitor. creativity and innovative play an important role in continue to gain competitive advantages as “people are the key” to create value to organization or so called “organization culture” which is difficult to adopt by its competitors in market. . As the results. Service expectation is higher for Japan and America markets.

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