The case is an analysis of Giordanos corporate expansion mission
The case is an analysis of Giordano’s corporate expansion mission. The case examines what Giordano’s future is and whether it would be beneficial if it maintains its current positioning strategy. The case also analyses the factors that will be essential to Giordano’s success and whether the company’s competitive strengths in merchandise selection and service are can be transferred to the new market. The company willing to retain its success in their existing market, wanted to examine issues that would affect their market entry and factors that will determine their success in the new market. Among the issues that the case presents is whether Giordano should change its present position. The company also debated if the factors that had contributed to the company’s success in their current market should be exercised in the new market.
The report also analyses the company’s background where it explains when and where Giordano was founded. The report records that Giordano initially opened its first retail store in Hong Kong and then expanded to other cities for instance Taiwan through joint venture. The company, according to the report expanded to Singapore later in 1985.
According to the report, the company since its formation used various positioning strategies. In understanding why the company took the options it took, the report analyses management values and Human Resource Policies. According to the report, the company has been willing to try new unconventional ways of doing business. According to the report, strong empowerment has helped the company to grow in various market segments as it believed that suppose it reduced its errors, they could be successful.
Describe and evaluate Giordano’s product, business and corporate strategies.
Giordano has continuously applied and is continuing to apply the facet of marketing which is concerned with the actualization of goods and/or services, as related to the customers’ needs. It was previous argued that a good product or service will sell itself. But in the highly competitive markets of today, there may be no bad products .Therefore the obvious questions regarding product include: Do the products meet the customer’s needs? And if so then what are the features of the products or services that meet the needs of our clients? These questions are best answered by the management as well as the relevant committees assigned with Napster land’s strategic planning.
Giordano has to maximize the use the four P’s which are parameters which the control of marketing, on condition of inner as well as outer constraints related to marketing environment. The goal here is to make decisions that center the four P’s on the customers in the target market in order to produce perceived value and generate a positive response.
Describe and evaluate Giordano’s current positioning strategy. Should Giordano reposition itself against its competitors in its current and new markets, and should it have different positioning strategies for different geographical markets?
A major requirement in business is to capture the attention of the customers by providing them with whatever they require at a meaningful cost. Understanding the customer is a critical aspect in this case since the business would be in a position of working towards the customer expectations. These expectations are best realized by contacting customer research.
To enhance customer relationship, various approaches can be used. First, one can observe the customers in their normal and everyday surrounding. Observing the customers’ normal and their daily life would include establishing their daily opportunities as well as getting to know their expectations. This would make the management work in a way that would meet such expectations. Customer expectations could be established in a friendly way whereby customers are requested to state their satisfaction from the consumption of the provided products or services. The observation could be made through interactive ways such as observing the way customers enjoy the use of the business products or services. The behavior of the customers could as well be observed such as establishing whether customers end up becoming repeat customers.
Again, it would be important to observe the way customers shop and consume the business products or services. Some customers would want to increase the quantity of products they purchase depicting an aspect of satisfaction. Various aspects could enhance customer satisfaction. Some customers would be satisfied by the type of product packaging used while others would be captivated by the quality of customer care services available. The feature that contributes to increased customer satisfaction should be considered. To establish such feature, the use of several prototypes could be used such as observing several packs in the case of packaging as a key factor. Customers would always seem to be attracted by different versions of packaging, which portrays their expectations and level of satisfaction.
The company that operates like Giordano is Yumi Kim which was founded in 2004. Since its formation, the company expanded and currently has more than five retail centers. Yumi mainly deals with cloths just like Giordano.
What are Giordano’s key success factors and spruces of competitive advantage? Are its competitive advantage sustainable, and how would they develop in the future?
The most important thing to know the customer expectations and needs a way of improving the business-customer relationship would be the customer feedback. Using the right prototype to initiate these feedbacks would be a critical consideration (Cross, 2010). The feedbacks would make it possible to understand what the firm has to improve to improve customer satisfaction. This could be done with the use of effective communications systems via the business website, social networks, or personalized communications. The customer could also be involved in developing new ideas via these modes of interactive communication. This is the strategy that it has used.
Again, to understand customers effectively, the researchers should place themselves in the various situations of the customers. This could include having the same experience that customers have or pointing out own experience with respect to an observed behavior form customers (Cross, 2010). Direct experience of what the firm is offering would be of great importance in understanding why some customer would act in certain ways.
Customers are the most important driving factor behind the supermarket retail industry. Even though Giordano is constantly innovating and implementing newer technologies to retain and impress its customers, for customers it is all about convenience and better savings. A customer might be ready to change his supermarket store on the basis of proximity, lower price on particular commodity or better offers. The most significance attribute of Giordano is its dedicated and committed team. It is very much evident when one glances over its financial performance which sits high at a 6.5% greater than the forecast growth. Even the financial services have recorded growth in almost every product for Giordano. Splendid performance and stellar growth has been shown in women attires and grocery.
Could Giordano transfer its key strategies factors to new markets as it expanded both in Asia and other parts of the world?
The strategy that Giordano plans to execute in the future is focused on the customers. Quality, production, cost and capability will be among the areas addressed. The company’s original mission of providing the needed clothes to customers worldwide and to be the leading firm in the clothing industry still remains. Since it is focusing on the customers, their needs and how the products reach them, distribution is top on the formulation process. Giordano plans to apply an offensive approach defending its international business status as the global leader in the heavy industry. Since the company is already stable, established, and delivering, maintaining this impressive performance presents the biggest challenge. Increased financial service options, improved competitive prices and introducing innovation are some of the strategies that will obtain an offensive stance. Timely delivery of products, improved customer relations, and provision of high quality products to the customer is the other approach that targets customer satisfaction and loyalty. Company execution and accountability will also be included in the strategy for the future since it will build trust in the customers. Giordano u has in the past utilized upgrades to fend off competition. The strategy set for the future similarly applies the concept of improvement of quality and reliability.
How do you thing Giordano had/would have to adopt its marketing and operations strategies and tactics when entering and penetrating your country?
The main agenda on the strategy model of Giordano is expansion into the global market. The company has in the recent past and is presently hiring foreign and flexible employees who will help improve the company’s quality and accelerate sales abroad. Given the weakness of the domestic market, Giordano has applied an appropriate strategy to expand. Furthermore, its 2010 impressive profit illustrates the necessity of the company to join the international market as it has gained enough financial recognition to compete with global heavyweights. Additionally, the company aims to expand its product line to include other equipment in line with the needs of the customers.
Placement simply refers to the process through the goods in addition to services reach the customers (the market).This facet is sometimes referred to as Place, implying, a channel through which a product or service gets to the targeted clients. This is a process that involves making decision on the prices of goods and/or services together with the preferred discounts on the products. The objective is to work on a pricing strategy best suited for both the clients and the business firm.
What general lessons can be learned from Giordano for other major clothing retailers in your country?
Strategic management requires assessment of the company’s strengths and weaknesses and the environment’s opportunities and threats. Three countries can be compared as they have competed in the same market for a considerable time. The competitive strategy applied by each company is different from the other. New entrants and competitive companies pose little or no threat to a giant market leader like Giordano. Although, a new entrant might offer a better offer on a particular product, it cannot overtake the hold of Giordano in the Australian market.
The value aspect of the three firms can apply to Giordano in its projected future competitive strategy whereby Giordano plans to improve its quality and reliability. Once the quality of Giordano is guaranteed to improve, the value of the products of the firm will improve consequentially and thereafter the profits realized will reflect the change in value. Value creation applies best in the factors that promote profit realization.
Giordano has opted for a strategy that will give positive feedback but there is uncertainty whether the income statement will reflect the success. The cost incurred in a customer service improvement strategy does not bring immediate and returns to cover for the expenses. A marketing and sales strategy would have been better. The Company has realized success from its quality and reliability improvement strategy in the past therefore the possibility of its strategy to succeed is high. The value aspect of the firms can apply to Giordano in its projected future competitive strategy whereby the Company plans to improve its quality and reliability. Once the quality of Giordano is guaranteed to improve, the value of the products of the firm will improve consequentially and thereafter the profits realized will reflect the change in value. Value creation applies best in the factors that promote profit realization.
Strategic management requires assessment of the company’s strengths and weaknesses and the environment’s opportunities and threats. Three countries can be compared as they have competed in the same market for a considerable time. The competitive strategy applied by each company is different from the other. Giordano has prioritized improvement in quality and reliability as its most utilized strategy. Giordano has merged, created a joint venture, expanded its product line and introduced financial services to offer ranging financial services globally. Giordano plans to focus on improving customer services which may be a long-term strategy that would reflect results later on rather than immediately. Giordano would rather have opted for improved marketing and sales activities which would have realized similar results but in a faster manner. The three companies have achieved a number of their original objectives with Giordano being recognized as the world leading firm in clothing.