PSTN Phone Subscribers in Bangladesh

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Month PSTN MOBILE
February, 09 1371999 45210000
January, 09 1353411 44740000
December, 08 1344456 44640000
November, 08 1335700 43960000
October, 08 1327645 43490000
September, 08 1314487 45090000
August, 08 1310307 45400000
July, 08 1294281 44800000
June, 08 1283179 43700000
May, 08  1270796 42040000
April, 08 1259426 40340000
March, 08 1237247 38930000

Competitors Analysis of Aarong

          Competitor analysis in marketing is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment.

          Aarong has its own version of the competitive analysis and its function is clear: to line up your product with other products and show where yours falls short and where yours is superior. Each industry brings a different spin to this old favorite and user experience design has its own set of criteria by which to judge competitors.

Competitors Analysis of Aarong

Competitors Analysis of Aarong

          From the above diagram it is seen that Aarong has competitive advantage over it’s competitors on almost every factors. Only few companies have ability to chase some sort of advantage like Aarong. Such as Rina Latif’s product features, qualities and innovativeness, Kay-Kraft and Anjan’s supplier, Rang’s color and Khubsoorti’s cost.

SWOT Analysis of Aarong

SWOT analysis is a powerful technique for understanding organizations Strength & Weakness and looking for the Opportunities & Threats it may face. Used in a business context it helps organization carve a sustainable niche in a market. This analysis is mainly based on an imaginary situation.

SWOT analysis of Aarong

SWOT analysis of Aarong

 Strength

Aarong is a very reputed organization. They are now capturing 68% of total handicraft market share in Bangladesh. It’s a local brand and now exporting their products outside of the country. Aarong has good reputation for fine quality products. It has a strong management team who are continuously giving their great effort to make it a successful one. Another important fact is that, Aarong has almost “Zero” production damage rate which reduces their cost. They are innovative and always bring some new product in the market which meets customer requirement and expectations. The organization is a respected employer that values its workforce.

Weakness

Aarong has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their producer may not be able to produce product timely due to their inability. The collection channel of the organization is not that much structured so that they can get the products from the producer on time and it may create problem for them in future. If any producer is not able to make the product on time due to some personnel problem then the company will also not be able to deliver their product on time. This is a big problem and it happens most of the time on delivery. Aarong charges higher price relatively than their other competitors as a result some times customers lose their interest to by product from them. Its sales force or sales girls within the outlet are not properly trained up. Sometimes they make customers disappointed by their attitude and customer doesn’t feel good to buy from there. Sometimes they suffer for financial problem, although it’s a rare situation.

Opportunities

Aarong is very good at capturing the advantage of opportunities. It can go for new distribution channel like it can make some joint venture with some other small Boutique and sales its products in more places. Through that it can capture more market share in the handicraft industry in Bangladesh.  Aarong can expand its business globally. New market for handicraft such as Europe and America are beginning to emerge. People are now trendier about local events & functions like Pahela Falgun, Pahela Baisakh, Victory day, Independence Day etc and they buy new and special products for these events. Aarong can make new products to sell in those special occasions. According to the season change, people are also changing their preference in buying products and considering this scenario Aarong can produce products on the basis of seasonal variations.

Threats

Aarong doesn’t have any big competitors right now. But they have some small competitors like KayKraft, Anjans, Deshal, Jattra, Khubsurti, Rina Latif, OZ, Rang and some other Boutiques established at Banani 11, who are taking their 32% customer and increasing in a slow rate. Aarong always face price wars with their competitors. Its competitors have some superior products like OG’s Panjabi shape, Khubsurti’s design of Salwar kamiz Rang’s Shari’s color, which is decreasing Aarongs market share as well as sales.  But now they are repositioning their Brand to compete with them.

PAGINAS AMARELAS

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     J.P Morgan & Company was advised by Brasil Investimentos to give a statement regarding a sale or restructuring of its subsidiary Paginas Amarelas – the telephone directory business. The responsibility for the valuation of business of Paginas Amarelas was given to Juan Lopez, a new associate of JP Morgan’s Latin America M&A Group who had better understanding of the business markets where they were conducting their businesses.. Juan Lopez estimated the future cash flow (in US$ as requested by the client) of the operations in the three Latin American countries (Argentina, Brazil and Chile) where they were competing. 

     After calculating the future cash flow, Lopez estimated the weighted average cost of capital (WACC) to find out the target rate of return for each country operation through which he determined the DCF value of the three country operation as well. 

     JP Morgan Company was basically a global financial service provider and considered as a major global player in the investment – banking industry. JP Morgan generally made use of three approaches-DCF (Discounted Cash Flow) method, trading multiples and transaction multiples for estimating the valuation of the company. 

     The Argentine subsidiary achieved 33 percent of Paginas Amarelas total net revenue whereas Brazil and Chile accounted for 52 and 15 percent of total revenue respectively.  In these three countries the telephone companies were state-owned and in monopoly position. The privatization of state-owned companies ended the operation of monopoly marketers and it resulted in creating superior services with lower charges which was followed by a remarkable increase in the number of lines. This privatization process also allowed the entrance of international companies into the local market of these three countries and increased competition and reduced margins. 

     Previously, Argentina, Brazil and Chile had been under dictatorship but in the mid and late eighties in had replaced by the democratic system. The economic of Argentina, Brazil and Chile had experienced major changes in last five to ten years and high inflationary environments gave more stable economies with recent annual inflation rate below 15%. 

     Lopez tried to consider the factors which have future impact on the changes in the telephone-directory business in the Latin American region for preparing the cash flow forecasts. He also considered the synergy like increased bargaining power when buying papers, printing efficiencies and partnership network with other companies all over the region. But one of the important factors Lopez did not consider when preparing the cash flow forecast was the ability that the single buyer would have to issue international debt on behalf of the three combined units. He also found that the telephone industry in Latin America there was no local “pure play” competitor and beta cannot be easily calculated for each country operation. 

     The valuation of the Paginas Amarelas was very difficult because too many problems had been faced by Lopez when he was trying to value the company. First thing he had to consider the future cash flows of the company. Second thing was that he takes an account of any type of benefits that the company can enjoy. 

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     For estimating the cost of debt it had been found that the country operations never borrowed money at the corporate level but only at the country level. JP Morgan didn’t issue debt internationally and rely only on local markets for their borrowings. 

     The last step for determining the cost of equity, Lopez could choose between two different approaches under the CAPM method (Capital Asset Pricing Model). The first approach was to apply local market’s parameters considering local risk-free rate, local market premium and beta. The second option was to use US market parameters to estimate the cost of equity and adjusted it with an estimate of country risk arising from the local political and capital market environment. This last approach was considered by Lopez for determining the cost of equity. But the adjusting factors which were used reflect higher risk offered by equity investment in Argentina, Brazil and Chile. In such situation Lopez found some difficulties of applying the appropriate “adjusting factors”. 

     The valuation problems those have been faced by Juan Lopez are given below:

  • No Local “pure-play” competitor:   

                 o  As there was no strong local competitor, beta cannot be easily calculated.

                 o There were mostly private companies and number was too small for comparison and cannot use Capital Structure comparisons.

                 o Most companies owned other types of businesses rather than telephone-directory company.

  • Cost of equity:

                 o Risk free rate for each country was difficult to determine

                 o Market risk premium (return on market minus risk free rate) was questionable because local equity markets were not efficient.

                 o Cost of debt calculated on the basis of borrowings. But the company never issue debts internationally; they mainly relied on local markets for borrowing. 

     The cash flows were forecasted here in local currencies and US dollars. In first step the cash flows were calculated in local currencies and then converted to US dollars. Cash flows were projected in nominal local currency, taking inflation into account. The forecast of the exchange rate (the forward rate) between the dollar and local currency was based on Interest Rate Parity, which assumed that the exchange reflects differences in the inflation rate between two countries.  Cash flows were then concerted into US dollars using the estimated exchange rate for each period. 

     JP Morgan used US$ rather than to use local required rate of return to discount cash flows for all three countries because of highly inflationary currencies. 

     To estimate the required rate of return by using WACC method, the factors that should be considered is the cost of borrowed money. No international debt had been taken on behalf of three country operations together as the telephone-directory subsidiary but JP Morgan relied on the local markets for their borrowing needs. So the local borrowing rates, tax rates and long term capital structure should be taken into account for estimation. 

amarelas

     Estimating the cost of equity under CAPM method there are two approaches. The first approach is to use local market parameters such as local-risk free rate, local market premiums and beta. The problems those had been faced were to determine the risk-free rate and estimating the equity risk premiums for each country. Historical data on equity market and key competitors in the industry should also be considered when estimating the required rate of return. 

     The second approach is to use US market parameters to calculate the cost of equity which will then be adjusted to reflect the country risk and this country risks measured from the local political and capital market environment by using “adjusting factors”. 

     The valuation process of Paginas Amarelas was in question whether the approach that had been used was appropriate or not. Because there should be some modification of the valuation methods using various adjusting factors in estimating cross border rates of return.

ACTIVE MATRIX LIQUID CRYSTAL DISPLAYS: TRADE DISPUTE

            AMLCD, or Active Matrix Liquid Crystal Display, is the high performance evolution of LCD technology and this flat panel screen delivers superb brightness, contrast and clarity. Using an array of thin film transistors (TFT) that control each individual pixel, AMLCD technology is able to achieve enhanced display quality given that the voltage used to power each pixel is not transferred to surrounding pixels. Additional offering of crisp displays, AMLCD flat panel screens can be made smaller and lighter than their LCD and CRT (Cathode Ray Tube) counterparts. In addition, a consumer or industrial LCD monitor utilizing AMLCD technology is more energy-efficient. These combined advantages have made AMLCD technology an increasingly popular solution for consumers and industries alike.

             AMLCD technology has been especially beneficial in military and healthcare fields, where display quality and physical size can be a matter of life or death. For people working in tight quarters, such as an operating room or fighter cockpit, AMLCD technology is a compact, reliable solution. On the other hand, a custom-designed industrial LCD monitor utilizes the latest technology in order to benefit military, transportation and industrial markets alike.

    1.    Evaluate the Commerce Department’s decision to impose duties on Japanese manufactured AMLCDs. Has this decision helped or harmed US industry? What is the likely impact on the US consumer?

Answer: The US Commerce Department imposed a 62.67% of duties on AMLCDs imported from Japan to US in 1991. This decision has been taken by the International Trade Commission as they got complain from a small US manufacturers of AMLCD about dumping activities of the Japanese suppliers who are exporting same product in US. According to US Antidumping Act of 1921, dumping occurs when imports sold in the US market are priced either at levels that represent less than the cost of production plus an 8% profit margin or at levels below those prevailing in the producing country. The US manufacturer main claim was that the Japanese suppliers were dumping their products in US market as they were used to sell their imported products less than their market value and at less than half of their production cost. After investigating the above scenario of charges of imported AMLCD, the International Trade Commission got the result that the Japanese producers were used to sell AMLCD lower than the total cost and this trade activity was against the US Anti dumping Act. This decision had been taken by the ITC to protect the small US manufacturers from unfair foreign competition.

             But the ultimate decision of imposing this duty could not help the US AMLCD manufacturers because they required large amount of investment to get success for their local industry for which they did not get support in terms of subsidies from the government. On the other hand this duty affected the American laptop computer manufacturers because they were used to import LCD screens from Japanese suppliers mainly through joint venture operations. This duty increased the total manufacturing cost of the laptops by 30 percent. For these laptops 50 percent of the total cost is accounted for the AMLCD screens which are the mostly expensive component than the other parts of laptops.

             This increased manufacturing cost would have negative impact both for the manufacturers and consumers as well. Because this situation will put limitations on the consumers not to get the high quality product with low price from the producers and this may create direct and indirect customer dissatisfaction.

   2.  What, if anything, could the US government do to keep US computer manufacturers from moving their manufacturing operations offshore? Should the government take such action?

Answer: The decision of imposing an antidumping tariff on AMLCD screens imported from Japan made the suppliers asked the U.S. Court of International Trade to overturn the ITC decision that the American industry had been injured and thereby throwing out the 62.67 percent, specifically levied against Hosiden and collectively against all other Japanese supplier like Hitachi, Matsushita, NEC, Seiko Epson, Sharp, and Toshiba. Not only these firms, the other US computer manufacturers like Apple, Compaq, IBM, and Tandy were also filed a separate appeals with the Court of International Trade and all attacked the ITC finding that a U.S. industry in AMLCD panels exists, let alone that it could be injured. During that time IBM was studying the possibility of assembling computers using active matrix flat panels there. But now IBM has none on the market but, in connection with its joint venture with Toshiba, is expected to introduce laptop/notebook models using AMLCDs. The other two computer manufacturers Apple and Compaq decided to move their production outside the United States. They showed the logic that these third countries do not levy tariffs on imports of AMLCD from Japan and on the other hand the US does not levy tariffs on imports of finished laptops from those third countries.

       The computer manufacturers of America asked the Court of International Trade to set higher antidumping duties, and also to subject imported electronic subassemblies for AMLCD panels to the stiff penalty tariff. In order to motivate the US computer manufacturers from moving their manufacturing operations offshore the US government should revise the decision about the charges imposed on AMLCD. They can go for tariff classification and impose different duties on the basis of subassemblies. This tariff classification can offers a number of planning opportunities. For example, AMLCDs customs duty rate is 62.67% can be broken down, and imported in separate consignments – such as display drivers and controllers – which attract lower rates of customs duty

       The US Commerce Department in its final antidumping ruling should exempt the electronic subassemblies from the penalty duties.

   3.  What criteria should the US government apply in targeting industries for antidumping protection?

Answer: In US a group of small companies are involved in manufacturing AMLCD and their target niche market is Defense Department for whom they are only producing their product on limited basis. AMLCD is an important component for computer displays, camcorders, medical instruments, high-definition television, auto dashboards, factory control devices, aerospace instruments and the instruments for military. Among these products, US Airforce uses AMLCD screens for cockpit instrumentation and flight simulation devices and US Army needs the screens for its battle tank, and the Navy uses them in its shipboard command system. As the US AMLCD companies basically produce their product for Defense sector, the US government could impose antidumping charges for those AMLCD Japanese firms who are used to export the product which are used by US Defense Department. But the US government imposes duties on imported AMLCD from Japan to protect their domestic companies from unfair foreign competition. This decision by ITC affected the other industries like computer manufacturers, communications equipment and consumer electronics goods manufacturers.

   4.  If you were the CEO of a small US firm interested in AM-LCD manufacturing, what factors would be important in your decision to enter the AM-LCD market? Under what conditions might you enter the market?

Answer: If I were the CEO of a small US firm I would definitely be interested to enter the AMLCD market. The main factor that would be important in my decision to enter into the AMLCD market is the potential market growth rate of this product in near future. Active Matrix Liquid Crystal Display markets were over $19 billion dollars in the year 2000 and this huge market is expected to grow more and more. The possibility of traditional CRTs in desktops and televisions being replaced by AMLCDs is also creating the opportunity for the current growth of the AMLCD market.

In US a number of small local companies are engaged in this business but they are highly focused in supplying the specialized niches that is Defense Department except the other large companies like IBM which is producing AMLCD with the joint venture of Toshiba and offering the product in mass scale. The small US companies have made investments only to support their limited basis production and these companies do not have capabilities to go for mass production of AMLCD and sell those products on commercial basis. But there are possibilities of these US based firms to compete with those Japanese producers through attaining government and private funds to reproduce AMLCD technology and to improve the current manufacturing process. To be successful in this AMLCD industry as a CEO I would like to benchmark the business activities of IBM and other successful producers in Japan. High risks are involved in producing AMLCD screens but these risks have been overcome by the Japanese leading technology and the long payback period of investment. These strategies by the Japanese manufacturers and IBM’s joint venture entry strategies can be followed by my company.  However, the continued and growing investment in R&D for the development in next generation display device and additional AMLCD capacity features can also be the way so that none of the existing companies can find a worthy successor to AMLCD industry.

  5. Should the US government urge the pentagon to support production of AM-LCD’s? Explain the reasoning behind your answer.

Answer: The US government should ask the Pentagon to support the production of AM-LCD’s.

       Some US government experts visited the AMLCD plants in Japan and recognized that the US manufacturers are able to catch up with Japanese producers. They recommended, if the US companies can obtain government and private funds then they will be able to reproduce AM-LCD’s technology and improve manufacturing process. AMLCD companies need heavy investment and it’s not possible for the US government alone to provide full support to these companies by giving subsidies. So it will be better for the US government if they can persuade other investors like Pentagon to invest in AMLCD industry. The US manufacturers sold maximum of their screens to Pentagon  and in order to get grater value from these AMLCD companies Pentagon can go for partnering with them through investment. 

      The Pentagon also anticipated that the AM-LCD project meet it’s criteria for the “selective production” and this plan allows the Pentagon to commit funds for purchasing critical defense materials from selected contraction when projects meet certain standards. The firms obtaining contracts for AM-LCD production would be expected to find commercial buyers for the screens to keep their manufacturing cost effective and to avoid high priced products. 

      Pentagon’s funding decision to AM-LCD production may be a twist to encourage and attract other US investors to finance AM-LCD production to cultivate a customer base for the screen. From the upward consultation we can observe some chances or demand of the AM-LCD screen in the US market and how the business can established and successful within the home country.

Giordano: Making A Value-For-Money, High-Volume, High-Quality Service Strategy Work.

  Giordano

 

Background of  Giordano International Limited  

“The improved communication from Share Point and Outlook allows us to make better product allocations between markets, which has helped Giordano raise the average selling price on our items and increase gross profit.” Cody Chan, Regional Merchandising Lead, Giordano.

Giordano, International Limited is a retailer of men’s, women’s and children’s quality apparel, accessories and supplying products to third parties, founded at 1981 by Jimmy Lai in Kowloon, Hong Kong. Giordano has become a pioneer of customer service in the Asia-Pacific region and, as of January 2008, currently employs more that 11,400 people and operates 1800 stores worldwide in 40 countries.The company is Asia-Pacific’s most successful retailer and sells its name under the brands of “Giordano”, “Giordano Concepts”, “Giordano Junior” and “Giordano Ladies”. Giordano has been publicly listed since 1991 and since then trades on the Hong Kong stock exchange under the ticker symbol.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.

Giordano’s Vision is “To be the best and the biggest world brand in apparel retailing.” When the Mission is “To make people “feel good” & “look great“.[1]

Analysis

Firstly, how, if at all, should Giordano reposition itself against its competitors in its existing and new market? Would it be necessary to follow different positioning strategies for different market (e.g. Hong Kong versus South East Asia)?

Answer: According to Osama Taha- “A positioning strategy results in the image you want to draw in the mind of your customers, the picture you want him/her to visualize of what you offer, in relation to the market situation, and any competition you may have”.[2]

Giordano’s current positioning strategy is based on providing “value-for-money merchandise of discounted casual unisex apparel”.

Giordano repositioned its brand to focus on value-added products and broadening it appeal by improving on visual merchandising and apparel. The company also emphasized on the merchandise that is relatively mid-priced which means “inexpensive yet contemporary and trendy”, and offers quality, value and excellent customer services. Now the fact is whether or not Giordano should reposition itself against its competitors in its current and new markets. Repositioning is not necessary for the entire company because Giordano’s relatively mid-priced positioning worked well: “the inexpensive yet trendy” clothing appealed to Asia’s frugal customers, especially during the Asian economic crisis. However, with the Asian economy booming, customers now have more disposable income and spending power. Thus, Giordano could find it worthwhile to alter their brand image into a more high-value, high-quality and therefore higher price market.

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     This could mean primarily repositioning Giordano as a higher priced and higher value brand.  Giordano must continue to be creative in their promotions. Perhaps they should spend more on traditional advertising, as they spend less on advertising and promotion than close competitors.  A spokesperson, McCann- Erickson, in his one comment about Giordano was that it was a “good brand but not a great one. Compared to other international brands, it doesn’t shape opinion”. A competitor of Giordano is Esprit. They are seen as more upmarket than Giordano, whilst being stylish and trendy. However, Esprit promoted a “lifestyle” image, even though it is positioned similarly to Giordano.  So, Giordano could re-launch its image, to be more stylish and thus promoting a lifestyle and not just a brand.   It is not necessary for Giordano to follow same positioning strategies for different market but it will depend on the market condition of a particular whether to follow standardized or customized strategy. The company can go after with standardized positioning strategies “value-for-money merchandise” for different market within the same region like South East Asian countries. But before implementing this standardized positioning strategy Giordano needs to understand the single market on the basis of consumer’s tastes and preferences about the product and promotional activities. On the other hand, the other successful strategies of Giordano in proving excellent customer services, information system and logistics and human resource policies and practices should be implemented tactically for different markets. It means customized strategies should be developed for different countries even within Asia because there are some variations between countries in terms of their economic, cultural and social factors.   

→  Giordano completely understood its core competencies and the pillars of its success, but it had to carefully explore how they were likely to develop over coming years. Which of its competitive advantages would be sustained and which ones were likely to be eroded?

Answer: The competitive advantages those worked as key success factors for Giordano to achieve a distinct position in the competitive markets are:

Computerization – The POS terminals that are used to record and transmit flows of stocks to a mainframe computer which then aids in controlling stock flow of inventory.

A tightly controlled menu – It mainly focus on a few items whose demand and desirability can be closely monitored.                   

Frugality – curbed spending on advertising and tight inventory control

Value pricing – value for money apparel The other sources of competitive advantage for Giordano’s are: 

  1. A dedicated workforce in all outlets that provides quality service: In order to maintain this Giordano follows stringent selection procedures to ensure only desired employees are chosen, conduct workshops on “attitude training”, follows rotational on the job training method and performance related pay systems on the basis of periodic performance evaluations.
  2. Simplicity and speed of operations: Giordano maintained a flat organizational structure and this facilitated easy communication between people within the organization, helped to make speedy decision and to manage the project efficiently.
  3. A recognized brand: Giordano has received awards such as: The American Service Excellence Award, ISO 9002 Award and People Developer Award which helped Giordano to establish their brand as a familiar one in over 30 countries.  All these competitive advantages and sources should be maintained by Giordano in order to keep its current competitive position and there are some other competitive advantages that should be developed by Giordano in future. The future competitive advantages can be gained through investment into the development of employees and continued development of a learning organization which may not be gained by the other competitors.

A third issue to be considered was Giordano’s growth strategy in Asia as well as across continent. Would Giordano’s competitive strengths be transferable to other markets? Would strategic adaptation to IT strategy and marketing mix be required or would tactical moves suffice?  

Answer:  Giordano Company’s main competitive strengths which can be transferred to other market are: the experience of the employees, inventory controlled system, HRM practices but the policies should be different for each country and can use the established distribution, marketing and inbound channels members in order to market their product out side the home country.  IT strategy which is currently used by Giordano, it should not adopt the same strategy for other countries where they are planning to expand their business. Because the IT infrastructure for each country in Asia and other continents may not be the same and the current IT strategy of Giordano may not be supported by that particular country’s technological structure. Giordano needs more efficient, cost effective, and secure internal communication platform which will link its many sites in Hong Kong and other host countries. As the cross border business of Giordano is increasing, the company needed a comprehensive communications tool that would help Giordano employees conduct multisite management meetings, share documents and collaborate for fast business decisions and quality customer service. In such scenario Giordano can go for partnership with the IT company (Like Microsoft), through which they can install such a server and software through which they can equipped their staff with real time teamwork and presence capabilities that dramatically increased productivity. At the same time they can decrease its multi-national direct dialling and travel cost, as well as IT management costs. The marketing mix strategies that are followed by the Giordano for the existing market should not be the same for new markets where the company is willing to enter. The marketing mix strategies mainly deal with arrangements of the 4 Ps’. So the strategies regarding product price, price, place and promotion should not be the same for all target countries as the market differs in terms of their economic, cultural, social and political environment. But the successful strategies which are currently used for other market can be used by Giordano as guidelines and can develop tactical strategies for different market according to the market situation and customers’ requirement.        

Recommendation 

From the above analysis we have some recommendation for Giordano International Limited. These are: 

          C   It is essential to start promotions to increase brand awareness when starting businesses in new market.

          C   The location and site selection for establishing Giordano’s outlet in different country will be critical. The company should carefully select the site to position their stores which will be convenient for the customers.

         C   Customer is the key and main factor for differentiation is customer care. The company needs to follow customized customer service strategy for each market segment.

         C   Giordano needs to find out possibility of outsourcing to maintain low costs

        C   Extensive market research is needed to investigate designs and fabrics required by the target customers

Conclusion

Giordano has perfectly focused in the value-for-money concept and everything they do is managed at a world-class standard. The management conducted their business in such an excellent and professional manner which helped this brand to reach from Asia to the Middle East and India, Australia, Eastern Europe, and now in North America.

 References   

Kotler, P., & Kelvin, K. (2006).Marketing Management .New Delhi: Prentice-Hall  Publications.

Taha, O. (2000). How to Design Your Positioning Strategy. Retrieved February 23, 2008, from http://www. dime-co.com/marketing/positioning.htm

Giordano International Limited (Hong Kong). (n.d.). Retrieved February 25, 2008, from http://www.giordano.com.hk/web/HK/index.html

Our Company. (n.d.). Retrieved February 25, 2008, from http://www.giordano.com.hk/web/HK/ourCompany.html 

 


 

[1] Our Company in  Giordano International Limited’s home site

[2]How to Design Your Positioning Strategy” by Osama Taha

The above analysis of the case study was contributed by Farhana Tahmida Newaz