CASE BASED PRESENTATION

GIORDANO

PRESENTED
BY
GROUP # 4

AVTAR SINGH ASHWINI KUMAR

DALBIR SINGH

RAVI VISHAL
ANSHUMAN GOYAL
SHARMA
 INTRODUCTION
 Founded by Jimmy Lai In 1980.

 Started selling casual clothes.

 Earlier focused on wholesale trade.

 Began expansion through JV in Taiwan.

 In 1983 started up its own retail shops.

 In 1985 opened first retail outlet in Singapore.

contd..
First of all positioned itself as pricy retail store.

Than as exclusively men’s casual apparel.

Than as unisex casual apparel.

And in the end repositioned itself as discounted

unisex casual apparel.
 ASSUMPTIONS
 Might increase their operation worldwide.

 Might face more competition in Asian market.

 Might adopt RFID technology.

 Increase in revenue in future.

 SITUATIONAL ANALYSIS
Internal factors
o People.
o Flat Organizational Structure.
o Selection Procedure.
o Training.
o Performance Monitoring.
o Retention of staff.
o Inventory Control.
o Use of Technology.
 External Factors.
POLITICAL

Tax structure.

ECONOMICAL

Asian currency crisis.

Currency fluctuation.
Rising cost of raw material.
Labour cost
 SOCIAL
Taste & preference.
Culture.
Convenience.

TECHNOLOGICAL
IT systems.
Software's like
 Point of sale.
 Enterprise resource planning.
 Web designing
 FACTS & FIGURES
AWARDS.

o Ranked # 1 by Far Eastern Economic Review three years in a

row.
o Excellent service Award in Singapore for three consecutive
years.
o Store of the Year in 1991.
o Best Shopping Experience – Retailer Outlet in 1996.
o The Fourth Hong Kong Awards for services in 2000.
o ISO9002 recognition.
contd..
PARTICULARS. GIORDANO.

Turnover. 3,092

Profit after tax & minority interests. 360

Working capital. 762

Return on total assets. 18.8%

Return on Average equity. 30.5%

Return on sales. 11.6%

Price/Sales ratio. 2.07

Sales Growth. 18.5%

No. of employees. 6,237

 Questions & Answers
 Describe and evaluate Giordano’s product, business,
and corporate strategies.
o Product strategies
Value for money product.
Excellent services.
Focused on core items.
Customer oriented.
o Business Strategies
 Differentiation.
Cost leadership
Niche
contd..
Corporate strategies.
Did vertical integration.
Asian currency crises.
Concentrated on retailing.
Describe and evaluate Giordano’s current positioning
strategy. Should Giordano reposition itself against its
competitors in its current and new markets, and
should it have different positioning strategies for
different markets?
o Current positioning is discounted unisex casual apparel.
o Target up-market may create confusion.
o Difficult to make different strategies for different market.
o Costly to acquire existing brand or setup new brand.
o So go with old strategies.
  What are Gioranado’s key success factors (KSF) and
sources of competitive advantage? Are its competitive
advantages suitable, and how would they develop in the
future?
Giordano’s Key Success Sustainability in Existing Likely/Potential Future
Factors Country Markets Developments of KSF
DESIGN Somewhat Sustainable Competitors could
increasingly use technology
to assist in their design
process
Fast and Market Driven . Relies on effective On Giordano’s part, effort
organizational communications must continually be made to
and other intangible sources of obtain and utilize feedback
advantage, which are difficult from target customers.
for competitors to copy and
implement effectively.
Systematically collects Attracting and retaining good
ideas from customers, staff in design is important.
front line and experienced
designers
OPERATION,
LOGISTICS & IT
Excellent Management of
systems and integration of
activities, e.g. stocks
obsolescence costs are
minimized due to:
Daily sales report
(facilitated through IT &
system)
Limited stock in shops that
are daily restocked.
Rapid market driven
manufacturing.
Somewhat sustainable
Competitors would not be
able to copy the
implementation and
integration of the systems on
the scale that Giordano has
done.
Other competitors would be
likely to try to emulate
Giordano. 
Needs to continually look
for new ways to improve and
build its advantage inside
and outside its industry.
E.g. benchmarking against
retailers like The Gap and
Liz Claiborne, which are
well known for their
integration IT systems and
deficient operations
BRANDING AND
MARKETING
GIORDANO’S
BRAND.
Positioning: Helps instant
transfer of key values
Giordano offers (Value for
money, good quality casual
wear, excellent service).
Excellent brand recognition
due to high advertising
budget.
Somewhat sustainable.
Brand Equity helps to
build customer loyalty.
However, Giordano faces
threat of strong competitors
with similar positioning and
also from brand dilution
(e.g.”Cheap image”) as the
market in general shifts
upward along with
increasing incomes.
Biggest threat comes from
reputable players like The
Gap.
It could acquire another
brand to serve higher end
segment .
Giordano should continue to
invest in strengthening its
brand equity through heavy
advertising and excellent
customer service.
CUSTOMER
SERVICE
Fantastic customer service: Sustainable. Other competitors have not
Service orientation is yet attempted to follow
pervasive in many of its Giordano’s service strategy.
activities.

Recruitment, selection and A service culture is one

training of staff. source of advantage that
competitors would find
difficult to copy.

Empowerment and However, Giordano needs to

motivation of staff ensure that this culture can
be maintained as it expands
rapidly in existing and new
markets.
LOCATION
Good, high traffic Difficult to sustain. Competitors and
shopping and As Giordano’s sites new entrants will
are an important successfully
convenience
source of advantage, compete for good
locations. but other locations
competitors could
also do the same.
  Could Giordano transfer its key success factors to new
markets as it expanded both in Asia and rest of the world?

KEY SUCCESS FACTOR. TRANSFER POSSIBILITY

DESIGN. Likely.

OPERATIONS, LOGISTICS & IT. Likely.

BRANDING AND MARKETING. In ASIA – Likely.

Beyond ASIA – Difficult.

CUSTOMER SERVICE. Likely.

LOCATION. Likely.
How do you think Giordano had/would have to
adapt its marketing and operations strategies and
tactics when entering and penetrating your
country?

Consistency in service and merchandise quality.

Two dimensions of marketing and operations need to
be addressed separately.
Concentrate on the similarities between countries.
Careful to consider national and cultural differences
in some aspects of its marketing mix.
What general lessons can be learnt from Giordano for major
clothing retailers in your country?

o Giordano managed to deliver a high level of service.

o “Even the most sophisticated training program won’t guarantee the
best customer service.”
o No question asked and no time limit’ exchange policy.
o Careful staff selection.
o Realistic Preview of Job and Organization.
o Focus on Nature and quality of job experience.
o Employee Empowerment.
o Employee’s awareness of their roles in customer satisfaction and
Economic success.
o Scorekeeping and Feedback.
o Integration of employees into a winning team.
o Concentration on Quality at the service core.
THANK YOU!!..