The company had manufacturing plants in the Mainland China and also sourcing from external suppliers for keeping its low cost and quality control and expands its retail outlets to maintain its sales high sales volume.
Its major product strategy is to sell a small number of core products which can achieve to sell large quantity with large number of outlets and taking the advantage of economies of scale to support it to sell at competitive cost under its core brand name Giordano. They can be benefited by making use of the cost leadership strategy for offering lowest price and still can achieve profitable return. Moreover, maintaining restricted range of core products can allow it to response to market changes faster than its competitors and focus on its target customers’ need.
The company has improved the value of its product by requesting certain product adaptations and invited customers to set the price of its jeans.
On the other hand, they have other different product lines under the name Giordano Ladies, Giordano Junior and Giordano Concept for promoting it to new customer niches. This can clearly distinguish its products by different business strategies. Giordano Ladies’ target customers focus on office ladies and Giordano Concept’s target customers focus on young generations with a higher demand of fashion sense and design. They make use of differentiation strategy to these target customers who are relatively not price-sensitive and serve those customers with their specific needs.
It helps to take an historical perspective by making use the SWOT analysis under the current market conditions. This is to analyze...