Karimadon Operations Audit

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BA 105 OPERATIONS AUDIT BY GO, PARUNGO, SHIE, YU, ZARRAGA

Introduction
The Philippines is considered one of Asia’s top booming middle class. With the rise in status and disposable income of this emerging group, a change in purchasing patterns and brand preference can be observed. This is reflected in the industry of retail, specifically in women apparel, by a stronger volume and value growth. Global apparel industry will be valued at $1,184.1 billion by 2013, a 15.4% since 2008. Within this statistic, the global women’s clothing industry is seen to independently increase by 12% in 2014 (which will exceed $621 billion). Among the companies taking advantage of this positive outlook on the industry is the fashion label, Karimadon. Karimadon Corporation is a retail boutique that sells ready to wear women’s apparel. It was founded 32 years ago as a humble store in Greenhills creating trendy and chic fashion wear. It was founded in the year 1980 by Richard and Josie Go and has since grown and expanded into 18 company-owned branches. Karimadon is proud to design unique, yet affordable apparel for its confident, vivacious, and hardworking clientele.

Vision and Mission
The company aims to provide women with classic yet stylish choices at competitive price points. Karimadon’s mission is to become the first-choice brand for fashionistas seeking a classic and timeless look with a modern twist. After establishing itself in the local market, it hopes to expand internationally and become a global brand. However, in order to do so, they must look back at their operations and evaluate if they are ready to go forward.

Target Market
The main market of the company is composed of women of ages 18-40. These are middle class consumers seeking relatively unique designs, which are ready to wear, of excellent quality, and reasonably priced. Through the years, there have been trends of frequent buyers, which were classified as the shadow market of teens who buy clothes for their prom and other occasions. In addition to this, women older than 40 also appreciate the classic styles of Karimadon.

Competitors
Karimadon is able to identify its competitors from other local brands as well as international brands. Among local brands, Kamiseta, Kaschieca, and BAYO are its main competitors. Among international brands, the company competes with the likes of Zara, Mango, and to some extent, Forever 21. All of these companies offer products at a similar level of quality, and target a similar audience of women of the middle to upper class With the goal of global expansion, it is vital to take into consideration the best practices observed by its competitors. Most notably, Zara is praised by multiple supply chain managers by its synergized model ensuring efficient and effective operations. It’s best known for its speed in rolling out from the sketch board to the racks. Keeping this in mind, reviewing current operations and maintaining a commitment to global standard will move the company towards rapid expansion, which will soon equal, or even surpass the likes of Zara.

Operations Strategy
The company’s corporate strategy since the very beginning has been to bring a classic and elegant yet modern aesthetic sense of style to a widespread group of consumers across many different demographic categories. The company yearns to expand and become a global brand through constant innovation while maintaining top quality. After more than thirty years in the fashion retail industry, though the brand has expanded its product lines, it is still most known for its specialization in classy evening wear, which is where Karimadon’s brand equity is rooted in. The company ensures that customers continue to love and support the brand by guaranteeing quality and efficiency through its various policies. One of the most important policies of Karimadon is having quality at the source. This has been put into practice by making sure that they choose suitable suppliers...
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