Giordano Case

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Giordano: International Expansion Case Analysis

Date submitted: Aug.9, 2010
Submitted by; dirtyicecream_90@yahoo.com

1.) How would you describe and evaluate Giordano’s product, business and corporate strategies?

Corporate strategy:
* Flat organizational structure
* Concentrated on retailing

Business strategy
* Cost leadership
* Niche
* differentiation

Product strategy:
* Value for money product.
* Excellent services.
* Focused on core items.
* Customer oriented.

* Giordano is effective when it comes to their product, business and corporate strategies.

Their product strategy: the value for money, focused on core items and excellent services. Their success is because of relentless focus on providing quality products, simplicity, innovation and service. The company is renowned for its basic and practical men’s, women’s, and children’s T-shirts and trousers, especially denims. The employees are customer oriented and they are treated as assets, paying them with high wages.

The Giordano’s business strategy: the inventory controlled system which helps them in more efficient inventory holding. Allowing the company to solve some problems and cut some cost resulting by slow moving inventory. The company also swift cost- control strategies in the areas of rent, outsourcing, inventory control, cash management and etc. Another business strategy is differentiation and serving niche market.

Their Corporate strategy relies more on retailing. Their vision is to be the best and the biggest world brand in apparel retailing. The company operates 1800 stores worldwide in 40 countries and it continues to expand more. Selling the name under brands of “Giordano”, “Giordano Concepts”, “Giordano Junior” and “Giordano Ladies”. The company tries to maintain flat organizational structure and this facilitated easy communication between people within the organization, which helps to make speedy decision and to manage the project efficiently.

2). How would describe and evaluate Giordano’s current positioning strategy. Should Giordano reposition itself against competitors in its current and new markets, and should it have different positioning strategies for different geographic markets?

Giordano’s current positioning strategy is based on providing value-for-money merchandise of discounted casual unisex apparel. They focus on value-added products and broadening it appeal by improving on visual merchandising and apparel. The image of the brand is already established. It was positioned based on quality and price of the products. Repositioning it is not necessary because changing their image could create confusion among markets. Changing the price could destroy the image of the brand. They should maintain good price value rather than being cheap. Perhaps they should spend more on promotions and advertising since they spend less on these areas. And instead of changing price the company should re-launch its image to be more stylish and thus promoting a lifestyle and not just a brand.

 It is not necessary for Giordano to follow same positioning strategies for different market but it will depend on the market condition of a particular whether to follow standardized or customized strategy. The company can go after with standardized positioning strategies “value-for-money merchandise” for different market within the same region. But before implementing this standardized positioning strategy Giordano needs to understand the single market on the basis of consumer’s tastes and preferences about the product and promotional activities.

3). What are Giordano’s key success factors and sources of competitive advantage? Are its competitive advantages sustainable, how would they develop in the future?

The competitive advantages and key success factors for Giordano are; their value pricing- value for money apparel,...
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