GROUP MEMBERS

QIRRAT AFGHAN

KHIZRA AMIR

FROOSHA KANWEL
 COMPANY PROFILE

 Gul Ahmed is a brand synonymous with quality, innovation & reliability not just in Pakistan but
all over the world.
 Ahmed’s textile products represents a unique fusion of century old tradition of the east and the
latest textile technology of west.
 The purest of cotton fibers are spun, woven & processed into the finest quality cotton & blended
products, through a combination of cuttings edge technology & highly skilled craftsmanship
 Gul Ahmed has introduced new fashion trends and dictated the style of the day with its classic yet
contemporary designs.
 MISSION STATEMENT

“To deliver value to its partners through innovative technology and teamwork.
Fulfilling its social and environmental responsibilities”

o PROPOSED MISSION

o “Our mission is to give our customers locally and internationally a competitive

advantage through superior textile products and services at best prices.
o We will meet and exceed our customers 'expectations of service through
timely delivery and supreme quality.
 VISION STATEMENT

“Setting Trends globally in the textile industry. Responsibly delivering products and services to
its partners”

PROPOSED VISION

“To be a world class textile organization one that lead and serves as the benchmark for others.
 OBJECTIVES

We are committed to delivering sustainable excellence in business performance by focusing on

the following:

Be the textile industry leader of the country.

Maintain and make Gul Ahmed's position stronger as the number one local brand in fabrics,
apparel, and home textiles.
Manufacture premium products to meet customer requirements.
Be the trendsetter.
Be innovative in fashion.
Create new opportunities for business growth and diversification.
 STRATEGIES

 Creating shareholder's value by securing the highest growth rates in terms of sales and
earnings per share.
 Diversification of products is the core strategy. The Company focuses on fulfilling
requirements of different customers in line with the latest fashion trends.
 Adding new product range both for international and domestic customers.
 Multi-brand strategy to cater to different categories of customers both in terms of purchasing
power and local customs.
 Strong quality management system to ensure that products not only meet the customers’
requirements
 Improving HR policies and practices enabling hiring and retaining competent individuals on
competitive remuneration.
 Invest in state-of-the-art machinery to ensure quality.

 Reduce commercial borrowings.

 TACTICS

We are committed to making significant investments in cutting-edge machinery and

the latest technology to guarantee top-notch quality, increased productivity, reduced
wastage, and enhanced cost efficiency.
2. Our strategy includes outsourcing certain operations to enhance our overall
production efficiency and economic performance.
3. We continuously strive to improve our systems and processes, whether through
replacement or
optimization, to maximize output while minimizing costs, particularly in terms of
utility consumption.
4. We are dedicated to the implementation and periodic upgrading of our Enterprise
Resource Planning Software,
 5. Ensuring the safety of our workforce is paramount. We focus on providing
comprehensive training and awareness regarding safety measures for both daily
tasks and emergency situations.
 STRENGTHS

 Strong Image and Branding

 Pioneer of Apparel Fabrics

 Established Relationships
 Competent Workforce
 Global Presence
 Technological Advancement
 Raw Material Base
 Employee Relations
 Customer Dependency
 THREAT OF NEW ENTRANTS YES ~ NO
(+) (–)
INDUSTRY ANALYSIS 1 Do large firms have a cost or performance advantage in your segment of

( P O RT E R ’ S F I V E F O R C E S ) 2
the industry?
Are there any proprietary product differences in your industry?

3 Are there any established brand identities in your industry?

4 Do your customers incur any significant costs in switching suppliers?
5 Is a lot of capital needed to enter your industry?

THREAT OF NEW ENTRANTS 6 Is serviceable used equipment expensive?

7 Does the newcomer to your industry face difficulty in accessing
distribution channels?
8 Does experience help you to continuously lower costs?

INTERPRETATION 9 Does the newcomer have any problems in obtaining the necessary skilled
people, materials or supplies?
 The threat of new entrants is relatively lower in the textile 10 Does your product or service have any proprietary features that give you
sector of Pakistan, as there are many potential textile lower costs?
manufacturers in the country. 11 Are there any licenses, insurance or qualifications that are difficulty to
obtain?
 The industry is growing at a satisfying rate and new 12 Can the newcomer expect strong retaliation on entering the market?

technology and skilled labor is putting life into the

industry.
 Companies are providing new, up to date products to their
customers that meet international standards and the
competition is very high. In a country like Pakistan
 Government is providing incentives though, but a huge
LOW HIGH
amount of capital is required to setup the business.
 BARGAINING POWER
BARGAINING POWER OF BUYERS YES ~ NO
(+) (–)

OF BUYERS 1 Are there a large number of buyers relative to the number of firms in the
business?
2 Do you have a large number of customers, each with relatively small
purchases?
3 Does the customer face any significant costs in switching suppliers?

4 Does the buyer need a lot of important information?

5 Is the buyer aware of the need for additional information?

INTERPRETATION
6 Is there anything that prevents your customer from taking your function
in-house?
Bargaining power of buyers is somewhat 7 Your customers are not highly sensitive to price.
moderate for the industry. Manufacturers 8 Your product is unique to some degree or has accepted branding.
provide products in bulk and on fixed price
9 Your customers’ businesses are profitable.
to their retail outlets, whole sellers etc. Prices
10 You provide incentives to the decision makers.
of these products depend on the cotton
cultivation, government policies, and in a
country like Pakistan, inflation and current
economic conditions are favoring this
industry.
LOW HIGH
 THREAT OF
SUBSTITUTES THREAT OF SUBSTITUTES YES ~ NO
(+) (–)
1 Substitutes have performance limitations that do not completely offset
their lowest price. Or, their performance is not justified by their higher
price.
2 The customer will incur costs in switching to a substitute.
INTERPRETATION
3 Your customer has no real substitute.

The threat of substitute is moderate; 4 Your customer is not likely to substitute.

there is no such potential substitute

available for this type of products. The
textile industry of Pakistan is diversified
and is providing varieties in their
products. LOW HIGH
 BARGAINING POWER OF BARGAINING POWER OF SUPPLIERS YES
(+)
~ N
O
SUPPLIERS (–)
1 My inputs (materials, labor, supplies, services, etc.) are
standard rather than unique or differentiated
2 I can switch between suppliers quickly and cheaply.

3 My suppliers would find it difficult to enter my business or

my customers would find it difficult to perform my function
INTERPRETATION in-house.
4 I can substitute inputs readily.
The bargaining power of supplies is relatively
5 I have many potential suppliers.
low, as there are no unique input for the
6 My business is important to my suppliers.
industry, and Pakistan is an agricultural
7 My cost of purchases has no significant influence on my
economy, so there are many potential suppliers overall costs.

available in the country.

LOW HIGH
 RIVALRY AMONG EXISTING COMPETITORS YES ~ NO
(+) (–)
RIVALRY AMONG 1 The industry is growing rapidly.

EXISTING COMPETITORS 2 The industry is not cyclical with intermittent overcapacity.

3 The fixed costs of the business are a relatively low portion of total costs.

4 There are significant product differences and brand identities between

the competitors.
INTERPRETATION 5 The competitors are diversified rather than specialized.

Rivalry is very high in this industry which makes
this industry a bit unfavorable. There are many
known competitors in the market. Textile
6 It would not be hard to get out of this business because there are no
specialized skills and facilities or long-term contract commitments, etc.
7 My customers would incur significant costs in switching to a competitor.
8 My product is complex and requires a detailed understanding on the part
of my customer.
9 My competitors are all of approximately the same size as I am.

manufacturers are providing products according

to international fashion industry and are
competing on the basis of technology, designs,
prices, quality and availability. LOW HIGH
 PEST ANALYSIS

 PEST ON THREAT OF NEW ENTRANT

 Though it is easy to enter in the textile business but to enter in the position of a vertical unit
is very difficult because of the huge amount of initial investment involved.
 At this point on time where the world is in the phase of recession and there are very few
buyers available, and already established brands functioning, it is very difficult for a new
entrant to earn their business.
 on the shorter scale as far as CMT (Cut Manufacture and Trims) unit are concerned it is far
easier to compete because of the low profit margins.
PEST ON BARGAINING POWER OF BUYER

 The global economic slowdown and the declining buying power makes buyer more
conscious towards prices and now they are competing for a single cent even.
PEST ON THREAT OF SUBSTITUTES

Threat of substitute in textile industry is pretty low in spite of the fact that there has been a lot of research on alternative
clothing like creped tissue paper sheets but they have not gain 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 a very low contribution in the overall textile sector.
PEST ON BARGAINIG POWER OF SUPPLIERS

 Bargaining power of suppliers is not very high because of the fact that cotton is normally the raw material that’s used
more and the cotton growers and ginners cannot bargain much because of the international pricing mechanism of
commodity exchange. But the bargaining power of suppliers of accessories likes:

 zippers
 labels
 tags
 poly bags

Their bargaining power is much higher because of the few players like YKK etc.
PEST ON RIVALRY AMONG COMPETITORS

The rivalry among competitors is extremely high as the margin of having order in the textile
industry is as low as to few cents both domestically and internationally.

 the recession has further intensified this rivalry as buyers are shutting down and the existing
numbers of buyers are getting lesser so all the textile companies are running to get their business.
 COMPETITIVE PROFILE MATRIX

GUL AHMED NISHAT MILLS KOHINOOR TEXTILES

Critical Success Weight Rating Wt. Score Rating Wt. Score Rating Wt. Score
ANALYSIS
Factors

Market Share 0.22 3 0.66 4 0.88 2 0.44 The analysis of the competitive profile matrix
Price Competitiveness 0.14 3 0.42 3 0.42 2 0.28
reveals that Gul Ahmed is second to Nishat AND IS
Management 0.06 2 0.12 2 0.12 2 0.12
DOING BETTER THAN Kohinoor textiles. The
Financial Position 0.08 4 0.32 3 0.24 2 0.16
overall market share of nishat is much higher than
Advertising 0.08 2 0.16 2 0.16 1 0.08
Gul Ahmed also the productivity of the nishat
Technology 0.08 4 0.32 4 0.32 2 0.16

workforce is much better where as Gul Ahmed is

Customer Loyalty 0.04 3 0.12 3 0.12 2 0.08

Product Quality & 0.10 3 0.30 3 0.30 2 0.20

performing much better as compared to Nishat in
hygiene

Employee Productivity 0.08 2 0.16 3 0.24 2 0.16

terms of financial position. It appears from CPM

Branding 0.12 1 0.12 1 0.12 1 0.12

that Gul Ahmed need to tap more markets to

TOTAL 2.7 2.92 1.80 gain extra market share.

 S PA C E M AT R I X

Internal Strategic Position External Strategic Position

Financial Strength (FS) Environmental Stability (ES)
Return on equity 2 Technological changes -2
Liquidity 2 Demand variability -3
Inventory turnover 2 Price range of competing -2
products

Earnings per share 1 Barriers to entry into market -4

Price earnings ratio 4 Competitive pressure -4
Ease of exit -5
Financial Strengths (FS) 2.2 Environmental Stability (ES) -3.33

Competitive Advantage (CA) Industry Strength (IS)

Market Share -2 Growth Potential 5
Product Quality -2 Profit Potential 4
Customer loyalty -2 Financial Stability 3
Control over suppliers and -3 Technological know-how 5
distributers

Ease of entry into market 3

Productivity, capacity 2
utilization

Competitive Advantage (CA) -2.25 Industry Strength (IS) 3.67

 ANALYSIS

 As can be seen from the graph above Gul Ahmed lies in the Competitive quadrant of the space
matrix. The graph illustrates traits of a firm which has a major competitive advantage in a high
growth industry.
FS
+6
Conservative +5 Aggressive
+4
+3
+2
+1

CA IS
-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6
-1
-2
-3

-4
Defensive -5 Competitive
-6
ES
 STRATEGIES

 Market Penetration
The company can invest more on Advertising for raising brand awareness or sending reminders to
customers of their offerings and also other sales promotion techniques such as summer sales encouraging
more purchase of their products.

 Market development
China and Russia are two potential markets for Gul Ahmed so it should avail this opportunity.

 Product Development
Gul Ahmed already are into diversification but in order to gain market share they can further seek to
introduce new product categories such as they can also start making sofa covers or carpets.
 GR AND STRATEGY M ATRIX

STRONG
COMPETITIVE
ANALYSIS:
POSITION
After the internal, external audit of the industry
WEAK COMPETITIVE

QUADRANT II QUADRANT I
GUL AHMED
structure and Gul Ahmed’s value chain and
internal processes, it is quite evident that Gul
POSITION

QUADRANT III QUADRANT IV Ahmed lies in the first quadrant of the grand
strategy matrix as the industry is growing

SLOW MARKET GROWTH rapidly. The company enjoys a strong

competitive position in the market place too.
 SUGGESTED STRATEGIES :

 For a company like Gul Ahmed strategies like market development or penetration and forward,
backward or horizontal integration are best suited.

 The company can explore new markets like china and Russia and market their products there, because
these markets offer considerable growth prospects both now and in the future.

 The firm has ample resources to further integrate backward, forward or horizontally or it can pursue
market penetration to concentrate on its current markets to overcome underutilization of its capacity
and resources.