You are on page 1of 32

GIORDANO : POSITIONING FOR INTERNATIONAL EXPANSION

Group Members
Krunal Shah Sneha Sharma Abhijeet Mahajan Alok Upadhay Honey Goyal 11BSP0912 11BSP1182 11BSP0006 11BSP1192 10BSP1424

Company Background
Company Background Founded in Hong Kong by Jimmy Lai in 1990 1980 : Targets U.S market through Comitex group 1983 : Backward integration and opening of retail stores in Hong Kong 1985 :First retail outlet in Singapore 1987 : Change from only men to unisex casuals 1994 : Lai left and Peter became the chairman of giardano

Management Values And Styles


Innovation Feel good factor Emphasis on people Recruitment : Attitude training Working on store Training

ORGANISATIONAL STRUCTURE
Flat and Decentralized Organizational Structure

SIMPLICITY AND SPEED


Empowerment Of Line Managers. Fast and Close Communication and Co-Ordination. Efficient Project Management. Speedy Decision Making. Dynamic Capabilities. Short Product Development Life Cycle.

PRODUCT DEVELOPMENT LIFE CYCLE

GIORDANO MEANS SERVICE


We Welcome Unlimited Try-Ons We Exchange No Questions Asked We Serve With A Smile Ranked No.1 For Eight Consecutive Years For Innovation. (By Far Eastern Economic Review)

SERVICE ORIENTATION ATTRIBUTES

Creative Customer Focused Campaigns and Promotions. Store Evaluation Best Service Shop Employee Evaluation Service Star Award Customer Feedback Cards and Firms Website. Efficient Information Technology and Inventory Management.

VALUE DELIVERY
Price Convenience

Fast Delivery

Giordanos Growth Strategy

Focus was on Regional Expansion for substantial growth Number of stores: 1994 : 360 1998 : 678 2002 : 1256 2006 : Over 1600

Desire to Grow and Expand Dependence on Asian market Target market outside Asia 1st Target, Australia 1999 : 4 stores 2006 : 46 stores

1998 Economic Crisis Japan 2001 to 2006 : Opened 21 outlets China 1999 to 2006 : 253 to 644 Outlets Indonesia 2006 : 39 Outlets Malaysia Promotional Campaigns Converted Franchised stores to company owned

Earlier, Different Countries/Region but same Strategy : Positioning Service level Information system Logistics HR Policies

CHALLENGES FOR MANAGEMENT TEAM


Positioning in new and existing market
Strategy for Existing Market Strategy for New Market

Explore the key Success


Factors Growth Strategy in and outside Asia

Strategies of Giordano

Product Strategy

Business Strategy

Corporate Strategy

Product Strategy
Retailer of unisex apparel. Value for Money Products. Customer service as a part of a product. Customers were asked to set a price for jeans. Free 10,000 T-Shirts were given as a token for feedback and for criticizing Giordanos services

Business Strategy
Creative Advertising and promotion
Simply khakis Yoga Collection

Differentiation
Quality of product and services offered to the customer

Focus
Customer Responsiveness Value- Quality, trendy apparel, at Affordable price

Corporate Strategy

Vertical integration manufacturing units in Mainland China and Philippines

In the year 1999, the Philippines factory was closed and they started focusing on their core business retailing/distribution

Started investing at opening new retail outlets in different parts of the world

Product positioning
During 1990, it tried to reposition its brand. Value-for-money or quality merchandise at affordable prices Gio Ladies was the product introduced Mid price positioning During 1999, it tried to reposition its Gio Ladies brand. Bluestar exchange(BSE)-budget cautious customer

Giordanos key success factors


Using Porters five forces framework, the key success factors can be explained

Risk of entry of potential customers: =moderate > investment in brand building and retail.

Bargaining power of suppliers: =low> suppliers can bereplaced easily

Rivalry among established firms =High>price and non price competition increasing in intensity, Slower demand growth

Bargaining power of buyers =Moderate > low switching cost but no collective

Threats of substituteproducts =Low> Lack of substitutes forcasual cloths

Competitive Advantages
Value Pricing

A tightly controlled menu

Benchmarked Best Practice

Computerization

Frugality

Competitive Advantages
Excellence in design:
Fast and market-driven new product development, Excellent organizational communication Dedication to the needs of customers (e.g., style, fabrics, etc.)

Excellence in management of operations, logistics and information technology systems: Effective supply chain management, Inventory control ,distribution Integration of purchasing and selling functions. Cost savings from efficient operations are transferred to customers, thus delivering value-for-money.

Competitive Advantages
Excellence in marketing and branding: Strong positioning, Brand equity for excellent service and ability to deliver value-formoney, Consistent execution of advertising and promotion to strengthen brand image. Excellence in service: Excellent customer service Human resource policies (e.g., selection, training and remuneration of frontline staff) Information systems, and performance monitoring (e.g., regular evaluations of service standards at store level and mystery shopping) Good site selection: Giordanos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

Competition
Main Competitors Similar Strategies but different markets The Themes direct competition Heavy Ads, sales Promos, attractive prices No question asked exchange policy The Gap- Giordano Unisex

Competitors Positioning

Thanks.