Giordano Case Holdings Inc

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Using the SPADE method, analyze Giordano Holdings Limited, Inc. Case

SITUATION
Jimmy Lai was born into poverty in Guandong, China. He was exposed to many western retail businesses that encouraged him to join the retail market himself. He thought of using a pizza parlor name to open his clothing chain. Lai founded Giordano in Hong kong in 1981. Giordano’s success is measured by the company’s relentless focus on its five corporate business values of quality, knowledge, innovation, simplicity and service. The company has its own apparel manufacturing division where many of its own clothing styles are produced. Giordano is also renowned for its basic and practical men’s, women’s and children’s T-shirts and trousers, especially denims. In comparison, Giordano is very similar to the American based retailer The Gap. The product is sold under the brands of “Giordano”, “Giordano Concepts”, “Giordano Junior” and “Giordano Ladies” Giordano’s first beginnings were gloomy. It originally targeted the upscale market of Hong Kong and sold exclusively only men’s casual apparel and with too high prices, as a result, they were unsuccessful. However, this does not hinder Lai to continue his dream and transform the company. Combining what he learned from other successful internationally acclaimed brands such as United Colors of Benetton, McDonalds and Marks and Spencers, Lai created and centered his attention on simple, high quality styles, available in different colors and sold in reasonable prices. This huge make-over was coupled with their emphasis on satisfying their customers. The formula seems quite successful and they regained their position across China and Hong Kong. Now, they even opened stores in nearby countries such as Singapore, South Korea, Thailand, Malaysia, Indonesia, Philippines and even in Middle East. PROBLEM

Their efforts to provide a high quality clothing line for unisex customers with reasonable prices brought a new wave of competitors for Giordano. This includes U2, G200 and their main competitor to date, Bossini. These new competitors are hard to bring down. Their strategies to thwart them proved to be disastrous as it resulted to affecting the company negatively rather than increasing its sales. Their main problem now is to develop a new strategy that would reposition and distinguish them in the retail market with the goal of maximizing sales instead of margins and sold value-for-money merchandise at the lowest operating cost possible. ALTERNATIVES

To further analyze Giordano’s situation in the market, an overall look at their strengths, weaknesses, possible opportunities and undesirable threats, or simply using the SWOT analysis. Strengths

a.Recognized Brand
For Giordano’s strengths, their awards in the industry have helped them establish as a household name in over 30 countries they service to. All these competitive advantage should be maintained by Giordano or improve this competitive position in the future. The advantages can be developed thru investment in their employees and continuous improvement in transforming Giordano in a learning organization which may not be gained by their direct competitors. b.Outstanding Customer Service (designing each service style to the culture of the country they are into) The tactical customer service strategy of Giordano wherein they customized it according to the culture of the country they serve to has proven to be effective. They are rooting in the idea that the customer service they have set should not be forced to their employees but rather, making them realize the most effective way to serve their customers in their own. They want their employees to find out what a good service is all about. This resulted in the integration of their corporate philosophy and leadership focusing on human relation function and performance monitoring. c.Excellent in Design and Management

They have this way of developing new products that is fast and market-driven. They...
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