Girodano
CASE STUDY EXERCISE
From Barnes, David (2008) Operations Management: An International Perspective, Cengage Learning http://cws.cengage.co.uk/barnes/students/sample_ch/ch2.pdf
Company background From small beginnings in Hong Kong in 1981, Giordano International Limited expanded throughout the Asia Pacific region to become one of its most well-known and established apparel retailers. By 2005, it employed over 11,000 staff in over 1,700 shops operating in 30 territories in Greater China, Japan, Korea, South East Asia, Australia, India and the Middle East. Giordano specializes in casual clothing for both men and women, and operates under the brand names ‘Giordano’, ‘Giordano Ladies’, ‘Giordano Junior’ and ‘Bluestar Exchange’. In 2005, sales of HK$4,413 million (up from HK$4,003m in 2004), delivered after tax profits of HK$431m (HK$418m in 2004). As early as the 1980s, Giordano realized that it was difficult to achieve substantial growth and economies of scale if it operated solely in Hong Kong. The key was to expand, both in the region and beyond. Moreover, after surviving the Asian economic crisis of 1997–1999, Giordano has also been endeavoring to move up-market to avoid the fierce price competition prevalent in the discount sector. However, as it moved into new segments and territories, Giordano had to consider how to adapt its marketing and operations strategies to suit these different markets. Giordano was originally founded as a wholesaler for Hong Kong-based manufactured clothing going to the USA. However, in 1983 it scaled back its wholesale operation and set up its own retail shops in Hong Kong. It soon expanded into Taiwan through a joint venture and in 1985 opened its first retail outlet in Singapore. Until 1987, Giordano sold exclusively men’s casual apparel. When it realized that an increasing number of women customers were attracted to its stores, Giordano started selling unisex casual apparel. It began to re-position itself as a retailer of
From Barnes, David (2008) Operations Management: An International Perspective, Cengage Learning http://cws.cengage.co.uk/barnes/students/sample_ch/ch2.pdf
Company background From small beginnings in Hong Kong in 1981, Giordano International Limited expanded throughout the Asia Pacific region to become one of its most well-known and established apparel retailers. By 2005, it employed over 11,000 staff in over 1,700 shops operating in 30 territories in Greater China, Japan, Korea, South East Asia, Australia, India and the Middle East. Giordano specializes in casual clothing for both men and women, and operates under the brand names ‘Giordano’, ‘Giordano Ladies’, ‘Giordano Junior’ and ‘Bluestar Exchange’. In 2005, sales of HK$4,413 million (up from HK$4,003m in 2004), delivered after tax profits of HK$431m (HK$418m in 2004). As early as the 1980s, Giordano realized that it was difficult to achieve substantial growth and economies of scale if it operated solely in Hong Kong. The key was to expand, both in the region and beyond. Moreover, after surviving the Asian economic crisis of 1997–1999, Giordano has also been endeavoring to move up-market to avoid the fierce price competition prevalent in the discount sector. However, as it moved into new segments and territories, Giordano had to consider how to adapt its marketing and operations strategies to suit these different markets. Giordano was originally founded as a wholesaler for Hong Kong-based manufactured clothing going to the USA. However, in 1983 it scaled back its wholesale operation and set up its own retail shops in Hong Kong. It soon expanded into Taiwan through a joint venture and in 1985 opened its first retail outlet in Singapore. Until 1987, Giordano sold exclusively men’s casual apparel. When it realized that an increasing number of women customers were attracted to its stores, Giordano started selling unisex casual apparel. It began to re-position itself as a retailer of