Giordano - Towards Multinational Growth & Sustained Success
Introduction:
Giordano International Limited was founded in 1981 and is a successful retailer and distributor of casual apparels operating in East Asia, South East Asia and the Middle East. Giordano operated in 20 countries and the corporate strategies encompassed values like quality, innovation, knowledge, simplicity and service. Its core competencies lied in creating ‘value for money’ thorough efficient supply chain and creating a good brand image by means of differentiation in customer services. Giordano in the past had adopted best practices from successful brands like MacDonald, United Colors of Benetton and the Mark & Spencer.
Giordano was in completion with brands like Esprit, Benneton, Baleno, Bossini, G2000, Uniqlo and U-right which also were looking for growths in new geographies. To continue sustaining the business and craving for further growth Peter Lau the CEO was critically reviewing the Key Success Factors and how the same could be transferred to other country markets that it planned to enter.
Giordano’s Competitive Advantage
Carryout a Porter’s Five Force framework
Suppliers Bargaining Power – Giordano is backward integrated with the manufacturers in China and hence the treat is low.
Customers Bargaining Power – Customers seek value for money and can switch to any supplier which based on the competition, innovation and fashion of the competitors.
Competitive Rivalry – is high in the casual apparel industry and this is caused due to the low growth rates. All players like Esprit, Bossini etc are aggressively competing and are currently focusing on increasing their shares in different geographies. Mainly the competition is non-price based as each one of them is under profit pressures.
Threat of potential new entrants – is moderate as development of a good network and brand building requires substantial time. Some already established brands from Europe and the US may however take a different view of the Asian market and decide to make an
Giordano International Limited was founded in 1981 and is a successful retailer and distributor of casual apparels operating in East Asia, South East Asia and the Middle East. Giordano operated in 20 countries and the corporate strategies encompassed values like quality, innovation, knowledge, simplicity and service. Its core competencies lied in creating ‘value for money’ thorough efficient supply chain and creating a good brand image by means of differentiation in customer services. Giordano in the past had adopted best practices from successful brands like MacDonald, United Colors of Benetton and the Mark & Spencer.
Giordano was in completion with brands like Esprit, Benneton, Baleno, Bossini, G2000, Uniqlo and U-right which also were looking for growths in new geographies. To continue sustaining the business and craving for further growth Peter Lau the CEO was critically reviewing the Key Success Factors and how the same could be transferred to other country markets that it planned to enter.
Giordano’s Competitive Advantage
Carryout a Porter’s Five Force framework
Suppliers Bargaining Power – Giordano is backward integrated with the manufacturers in China and hence the treat is low.
Customers Bargaining Power – Customers seek value for money and can switch to any supplier which based on the competition, innovation and fashion of the competitors.
Competitive Rivalry – is high in the casual apparel industry and this is caused due to the low growth rates. All players like Esprit, Bossini etc are aggressively competing and are currently focusing on increasing their shares in different geographies. Mainly the competition is non-price based as each one of them is under profit pressures.
Threat of potential new entrants – is moderate as development of a good network and brand building requires substantial time. Some already established brands from Europe and the US may however take a different view of the Asian market and decide to make an