University of La Verne - BUS 567 Service Sector Marketing
Positioning for International Expansion
Sheng-I, Chang (Becky)Chang-Ta, Yang(Frank)Chieg-Chiung, Chen (Jeff)September , 15th, 2011
Giordano established in 1981 by Jimmy Lai. It is a Hong Kong- based retailer of casual clothes targeted at men, women and children via its four company brands, Giordano, Giordano Ladies, Giordano Junior and Blue Exchange (Bitner & Zeithaml, 2011). Giordano is one of the best known and established apparel retailers in the Asia Pacific region, employing over 8,000 friendly staff with over 2,400 shops operating in 30 territories worldwide (About Giordano, 2011). They are committed to delivering quality products and service to their customers in the worldwide market. Their vision is to be the best and the biggest world brand in apparel retailing with the mission of making people "feel good" & "look great".
This paper starts with a corporate profile of Giordano. The main part of the case is positioning the international expansion of Giordano and a detailed analysis of its competitive environment and alternative solutions. Furthermore, the company’s growth strategies are discussed with recommendations provided to conclude the case. Company Profile
The Giordano Group is a leading international retailer of men’s, women’s and children’s apparel and accessories. 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 popular retailer The Gap.
Responding to the slow sales in the past, Giordano changed its positioning strategy in 1987 which the company decided to shift its focus to maximizing sales instead of maximizing price margin via a "value-for-money" policy with selling discounted casual unisex apparel, and increased commitment to customer service. The shift in strategy was successful.
The management values and style leads Giordano to be successful, which including a willingness to try new and unconventional ways of doing business and to learn from past mistakes, and considering front-line workers to be its customer service heroes. Giordano's commitment to service began with its major Customer Service Campaign in 1989. There are three tenets in this campaign which is " we welcome unlimited try-ons; we exchange - no questions asked; and we serve with a smile". Giordano's philosophy of quality service could be observed not only in Hong Kong, but also in its oversea outlets.
There are many companies in the market selling casual apparel. The way in which Giordano differentiates itself from other companies to gain competitive advantage is critical to its success. Giordano's Strategies
Giordano distinguishes itself from the others through its high-quality service and superior customer value. However, Giordano is still a long way off from being well known brand compared to other international brand. Giordano is a label that doesn't shape opinion, After 2005, when the garment quota is abolished, imports into the Asia region will become more competitive. This change could affect Giordano's position and growth potential. Philosophy And Value System
Regarding to Giordano's philosophy and value system, they believe that mistakes are unavoidable because of the rapid changes in the market. The critical thing is to learn from the mistakes. Giordano has made his employees comfortable about making mistakes. They believe in empowering people through providing a supportive, participative environment in which employees feel safe when mistakes are made. In Giordano philosophy, they feel that...
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