Giordano is one of Asia’s most successful retailers with operations in East Asia, Southeast Asia and the Middle East. The success of Giordano was attributed to factors such as providing excellent customer service, understanding consumer’s needs and wants, stringent selection and training of staff, short design to production cycles, and extremely good inventory control and turnover. With a strong emphasis on customer service and value for money Giordano was able to differentiate itself from competitors. The question is how, can Giordano maintain its competitive advantage in the future? Amidst increasingly stronger competitors and changing industry conditions, Giordano had to critically evaluate its sources of competitive advantage and key success factors, and perhaps to consider repositioning itself in current and new markets Furthermore, Giordano needed to examine which key success factors would likely to be eroded over the coming years. Furthermore, Giordano had to consider whether and if yes, how its key success factors could be transferred to other country markets that it planned to enter.
Mr Jimmy Lai - CEO
Statement of the problem
Increasing Giordano’s sales turnover, aligned with a substantial gain in market share. STATEMENT OF OBJECTIVES
* To reposition itself against its competitors in its existing and new markets. Long-term Objective
* To be the world’s leading fashion and clothing line companies in terms of profit and sales volume.
Areas of Consideration
Asian Currency Crisis
Rising cost of raw materials
Taste and Preference
Alternative Courses of Action
ACA 1 Giordano should implement a more sober approach to maintain consumer loyalty with their local brands. ACA2 Giordano should change their branding and positioning strategies ACA3 Giordano needs to find out possibility of outsourcing to maintain low cost
Products are various and categorized like ladies, kids, etc so it reaches all ages and unisex Providing a professional service so customers feel comfortable and concentration on quality at the service core Many people have known Giordano as quality brand
Giordano was able to consistently sell value-for-money merchandise through careful selection of suppliers, strict cost control, and resisting the temptation to increase retail prices unnecessarily A dedicated workforce in all outlets that provides quality service: In order to maintain this Giordano follows stringent selection procedures to ensure only desired employees are chosen, conduct workshops on “attitude training”, follows rotational on the job training method and performance related pay systems on the basis of periodic performance evaluations Quality staff recruitment for a high quality and loyal staff in Giordano from a careful staff selection A well chosen supplier to get the finest supplier and keep innovating to create creative products and high quality materials Prices are reasonable and keeping it normal, not to raise it up Giordano stores are located in dense population and high traffic areas Move fast on a market change
Smart in sales opportunity and minimizing store size for the efficiencies Using high technology for fast distributions. Every sales and the barcode information will be identified and transmitted directly to the company main computer and sales distribution department Giordano always makes sure that the stocks are always available in the store Fast moving items to avoid old items piled at the warehouse or best seller items unavailable Information’s are fast spread to the productions so if there’s any slow moving item, Giordano will try to sell it as fast as possible and...