Giordano Case Study

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Giordano : International Expansion
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# 1 Describe and evaluate Giordano’s product, business, and corporate strategies.

Giordano Storefront

Product Strategies :
Value for money product.  Excellent services.  Focused on core items.  Customer oriented. 

Corporate Strategies :
Did vertical integration.  Asian currency crises.  Concentrated on retailing. 

Business Strategies :
Differentiation.  Cost leadership  Nich

# 2 Describe and evaluate Gioranado’s current positioning strategy. Should Gioranado reposition itself against its competitors in its current and new markets, and should it have different positioning strategies for different markets?

Giordano’s Key Success Factors Design : Fast and Market driven New products developement.  Systimatically collects ideas from customers front line and experienced designers  Fast turnaround from market impulse, design, manufacturing to distribution to the shops Somewhat sustainable  Competitors could increasingly use  Relies on effective technology to assist on organizational their design process communications and  On Giordano’s part effort others intangible sources must continually be made of advantage, which are to obtain and utilize difficult for competitors to feedback from target copy and implement customers effectively  Attracting and retaining good staff in design it’s important Sustainability Development of these Key Success Factors in the future

Giordano’s Key Success Factors Operation, Logistics and IT : Excellent Management of systems and integration of activities, e.g. stocks obsolescence costs are minimized due to:


Development of these Key Success Factors in the future

Somewhat sustainable
 Giordano’s efficiency in logistics and operations may be copied or even exceeded with an acquisition of superior systems. However, there are not many competitors who would be able to copy the implementation and integration of the systems on the scale that Giordano has done

 Daily sales report (facilitated through IT & system)  Limited stock in shops that are daily restocked  Rapid market driven manufacturing

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

Giordano’s Key Success Factors Branding and Marketing Giordano’s Brand :


Development of these Key Success Factors in the future

Somewhat sustainable  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

 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  Giordano should continue to invest in strengthening its brand equity through heavy advertising and excellent customer service  It could acquire another brand to serve higher end segment

Giordano’s Key Success Factors Customer Service : Fantastic customer service:  Service orientation is pervasive in many of its activities.  Recruitment, selection and training of staff.  Empowerment and motivation of staff Location :


Development of these Key Success Factors in the future Other competitors have not yet attempted to follow Giordano’s service strategy

Somewhat sustainable  A service culture is one source of advantage that competitors would find difficult to copy  However, Giordano needs to ensure that this culture can be maintained as it...
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