Institute of Business Management

Term Report

Junaid Ur Rehman
(20191-26064)
 Table of Contents

• Mission
• Vision
• Values
• Company’s profile
• Porter 5 forces model
• SWOT
• PEST
• BCG MATRIX
• Value Chain Analysis
• Industry life cycle
 Mission
To deliver value to our stakeholders through innovative
technology, teamwork and by fulfilling our social and
environmental responsibilities.

Values
In achieving its vision and fulfilling its mission, the Company
shall operate on the following core values:
• Integrity
• Respect
• Passion
• Quality
• Teamwork
 Company Profile
The Gul Ahmed group began trading in textiles in the early 1900’s. With all its know-how and
experience, the group decided to enter the field of manufacturing and Gul Ahmed Textile Mills
Ltd. was incorporated as a private limited company, in the year 1953 with a paid-up capital of
Rs.8 MM. The Company started out as an integrated unit manufacturing cotton yarn and cloth
(grey/finished). It commenced operations in 1955 as an unquoted public company with a paid-up
capital of Rs. 10 MM, 25,000 spindles and 250 looms. In 1970 it was subsequently listed on the
Karachi Stock Exchange. Since then, the company has been making rapid progress and is one of
the best composite textile houses in the world. The mill is presently a composite unit with an
installed capacity of 130,296 spindles, 223 wide width air jet looms, and a state of the art
processing and finishing unit. Gul Ahmed attains ISO 9000 Certification with an annual turnover
of more than 80 million rupees.
Gul Ahmed is not only a textile giant, but it has strong presence in the retail business as well and
the group entered the retail business with the opening of its flagship store 'ideas by Gul Ahmed'.
Starting from Karachi, Gul Ahmed now has an extensive chain of more than 40 retail stores
across the country, offering a diverse range of products from home accessories to fashion
clothing. Fifty years since its inception, the name Gul Ahmed is still synonymous with quality,
innovation, and reliability.

Porter’s five forces Model

THREAT OF NEW ENTRANT

Though its relatively easy to enter the textile business, but to be at a certain position where Gul
Ahmed is will require huge amount of capital and initial investment. at this point in time where
the world is in recession due to covid and Russia Ukraine war there are very few buyers and with
already big companies exporting, it is very difficult for new entrant to establish and earn their
business. Also, it is extremely difficult for new companies to work because of duties and higher
number of utilities involved. Also, the IMF program Pakistan is bound to increase its tax
structure which will further difficult the situation. Countries like China, India, Bangladesh, and
Sri Lanka are giving severe competition to Pakistani textile companies and are taking their
business away because of cheaper labor available there and also lesser utilities expenses as
compared to Pakistan which is a major threat to our textile industry.

BARRIERS TO ENTRY

1) As the entry requires high capital therefore the entry barrier in terms of required investment is
high

2) If they feel threatened, existing manufactures may retaliate and stop new entrants from
entering the market

3) compared to established manufacturers, it might be very difficult for new entrant to gain
customer base and attract customer loyalty.

BARGAINING POWER OF BUYER

The global economic slowdown and the declining buying power of customer makes buyer more
price conscious about prices and the want the best quality in a particular price range. hence, to
stay in the business Gul Ahmed needs to have customer friendly prices as customer buying
power is strong and there are a lot of choices for the customers.

BARGAINING POWER OF SUPPLIERS

In Pakistan we have numerous players in textile industry. this large number of suppliers
availability that suppliers have a relatively weak bargaining power. Also, the supplier group has
low level of product differentiation which allows manufacturers to scout suppliers with the best
rates and get the bests prices. this reduces suppliers bargaining power.
 THREAT OF SUBSTITUES

Threat of substitute in textile industry is low although there has been a lot of research on
alternative clothing like creped tissue paper sheets, but they have not gained any popularity and
their implementation at mass scale is very difficult. There has been a shift in textile industry as
now more of plastic wire and tarpaulin is used instead of a weave but that segment as Avery low
contribution in the overall textile sector.

SWOT ANALYSIS

STRENGTHS
o Strong image and branding
o Pioneer of gents and ladies’ apparel
o Well established relationships with
international customers
o State of the art plant and machinery
o Well established loyal staff and workers

WEAKNESS
o Export demands primarily on a
few major customers.
o High labor-intensive industry
o Labor productivity is very low
o High utility requirement
OPPOURTUNTIES o Multiple locations difficult to
manage
o Growing retail market including expansion of
ladies and gents’ apparel
o Adding more products and range in stores
o Less explored USA CANADA and middle
eastern markets
o Expanding online sales.
THREATS
o Internal and external security situation
o Fear of some extreme actions by dominating
nations
o Irrational taxation policies
o Exchange rate
o High competition
 PEST ANALYSIS

Political
o The political situation of the country remains unstable
and is subjected to antigovernment movements
o Law and order conditions though improved, however
here are concerns about the situation in two of the
provincesand on the borders with India and
AFGHANISTAN

Social
Rapid changes in market trend and customer preference
make the market highly competitive
 Economical
Unfavorable pkr/usd parity has resulted in the loss of
export competitiveness delayed payments of tax
refunds from the government

Technological
o Gul Ahmed is enduring itself towards the integrated
systems for management and storage of data and recently
acquired cloud for this purpose
o Gul Ahmed is making best efforts to benefit from the
increasing trends of online shopping locally and
internationally
o Online marketing is another medium to interact with
customers globally
 BCG MATRIX

GUL AHMED
GUL AHMED
HOME TEXTILE LAWN

GUL AHMED GUL AHMED

INSTITUTIONAL APPARELS
TEXTILE
 Value Chain Analysis

Customer Value
Customer derived value is the difference between total customer value and total customer
cost. Gul Ahmed offers value to their customers through quality and exclusive designs.
Value Chain
Value Chain is a tool for identifying ways to create more customer value. Gul Ahmed’s
Value chain comprises of 4 primary activities and 4 supporting activities.
Primary Activities.
• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing and Sales
Support Activities.
• Procurement
• Technology development
• Human resource management
• Firm’s infrastructure
The primary value chain activities are:
• Inbound logistics: the receiving and warehousing of raw materials for fabric and cloth
manufacturing.
• Operations: includes the processes of spinning and weaving
• Outbound logistics: the warehousing and distribution of finished goods.
• Marketing and sales: the identification of customer needs and generation of sales.
Activities supported by

Infrastructure
Human Resource Management
Technology Procurement

The company’s value chain starts from purchasing raw cotton from both local as well as foreign
markets. Dyes are purchased from both local and foreign markets whereas chemicals are
imported from abroad. From wherever company makes purchases, the objective remains to buy
the best quality supplies to deliver superior value.
 Industrial Life Cycle

As Gul Ahmed has created a sustainable name in the market, they plan on strategies to stay
competitive in the business world and have designed distinctive frameworks to give their brand
an edge.
Innovation works
Staying one step ahead of the competition by investing in the latest technology. Their digital
printing factory is equipped with 8 state of the art machines that deliver the highest quality
digital printing in the country.
Sustainable works
Gul Ahmed is leading the way in championing sustainability. Their pioneering Better Cotton
Initiative (BCI) aims to improve the production process for the people involved, the impact on
the environment and the sector’s long-term growth. A Water Treatment Plant has also been
established to ensure that clean water is discharged in the sewerage system from our
manufacturing units. This will be supplemented by our plan to install a Water Recycling Plant in
2019 that will recycle industrial wastewater.
Design works
When it comes to design, the possibilities are endless. And when it comes to their designers,
their potential is boundless. Inspired by the latest trends from the region and across the world,
these talented creative minds are looking to push the limits to meet and surpass the expectations
of demanding markets.
Retail works
Their presence in the retail sector continues to become more prominent with their growing
network of stores across Pakistan, with more emphasis given to enhancing the overall shopping
experience. This is evident in their newest outlets in all major cities. With a footprint of over 100
stores nationwide, we are also present in the e-commerce market through our online store
website.