case study answers for Giordano: positioning for international expansion

1. 1) Corporate strategy: Flat organizational structure,Concentratedonretailing
Businessstrategy:Costleadership,Niche,differentiation
Product strategy:Value formoneyproduct,Excellentservices,Focusedoncore items,Customer
oriented.
Whenit comesto product,business,andcorporate strategy,Giordanoisawinner.
Theirproductapproach isbasedon value formoney,withanemphasisoncore commoditiesand
exceptionalcustomerservice.Theirsuccessisdue totheirunwaveringcommitmenttoprovidinghigh-
qualityproducts,simplicity,innovation,andcustomerservice.T-shirtsandpantsformen,women,and
children,especiallydenims,are amongthe company'smostpopularitems.Employeesare customer-
focusedandtreatedas assets,withhighremunerationpaidtothem.The inventory-controlledsystem,
whichaidsinmore efficientinventoryholding,isGiordano'sbusinessstrategy.Allowingthe organization
to addresssome issuesandreduce costsassociatedwithslow-movinginventories.Inthe areas of rent,
outsourcing,inventorycontrol,andcashmanagement,andetc.the corporationalsoemploysquickcost-
cuttingtechniques. Differentiationandtargetingniche marketsare twomore companystrategies.Their
corporate strategyplacesa greateremphasisonretailing.Theirgoal istobecome the greatestand
largestglobal clothesretailer.The companycurrentlyruns1800 locationsin40 countriesandis
continuingtoexpand.Underthe brands"Giordano,""GiordanoConcepts,""GiordanoJunior,"and
"GiordanoLadies,"the name isbeingsold.The companystrivestoretainaflat organizational structure,
whichallowsforeasycommunicationbetweenemployeesandallowsforquickdecisions,whichare
importantelementsforsuccessinthe face of rapidlychangingcustomertastesandfashiontrends.
2) The currentpositioningstrategyforGiordanoisvalue formoney.Giordanoiscommittedtoachieving
and sustainingclientsatisfaction.Intheirbusiness,customersare offeredadditional options.Employees
and salespeople,onthe otherhand,are the oneswhoattendto these clientsatthe operational level,
yettheyare not paidas theyshouldbe.Giordanorewardsitsemployeeswithbonusesthroughoutthe
yearas well asother typesof leave.Service differentiationisanothertermforthese typesof services.
Giordano'sotherpositioningapproachisto merchandise totheircustomersinsuchaway that the
pricingremainscheapwhile the productremainsunique due toitsquality.Giordanoshouldreinvent
itself inboththe currentand newmarketsbecause the brand"Giordano"iswell-known.The
managementhasstrategiesformakingmoneyandimplementingthe value formoneyphilosophy.
Employee efficiencyandspeedwhile outof stockhave earnedthe companya strong reputationinthe
market.If Giordanois willingtoextendtheirbusinessorrepositioninnew markets,theywill notbe
exposedtoanyrisk.However,establishingthe same levelof consumervalue andpleasure will require
time,whichisnotdefined.Atthe same time,becauseof the targetsegment,itmaygenerate problems
inthe presentmarket.Thiscouldcause some difficultiesintermsof repositioningoneself inthe new
market,andthe customer'sreactionisdifficulttopredict.The onlynotionandideatheyhave isto
provide excellentcustomerservice toall of theirclientsfromall overthe world.Second,theymust
maintaina highlevel of qualityandlow-costmerchandisefortheirclients.Finally,theyshouldincrease
and improve theirservicedistinctionincomparisontoexistingmarkets.Thiswouldenable themtoraise
customerawarenessof theirgoodswhilealsokeepingthemsatisfied.Inthisapproach,acompany's
servicescouldbe improved.We believethatif Giordanoisreadyto entera new marketand reposition
inan existingone,theyshoulddevelopavarietyof methodssothattheycan experience avarietyof
responses.Theyshouldfocusonthe strategiesthataren'tbeingimplementedinAsiancountries.

2. However,if the economyisgrowing, customers'spendingpowerimprovesastheirincome rises.Atthis
point,Giordanocan reallylaunchnewitemsandtacticstoensure that customersare aware of the
company'sexistence inbothgoodandbadeconomictimes.ThisisexpectedtoresultinhigherGiordano
productpricingand a better-valuebrand.Asthe economyimproves,theyshouldgraduallyposition
themselvesinthe newmarket.Due tothe economicdownturn,Giordanowill struggletokeepupwith
clientpreferences,causingthe companytomisunderstandthe customerandcustomerstobe confused
abouttheirbrand inthe newmarket.
3) • Cost• Quality• Speed• Dependability•Flexible
Giordano'sprimarysuccesselementsare thattheyhave keptatight reinontheiradvertising
expenditure andhave awell-organizedinventorysystem.They've maintainedaverygoodandefficient
systemforrecordinginventoriesandsendingareportto the salesanddistributiondepartmentatthe
endof the day.The newproductisdeliveredlate atnight,andinventoryisavailable before the stores
open.Thissystemiscomputerized,andithasvariousdata transmissionflowsinvariousbranches.Stock
control is typicallyfocusedonproductswithmore demandthanothers,asdeterminedbyGiordano's
seasonal offerings invariousareas.Consumersare more likelytopurchase thingsthatare "discounted
or on sale."Giordano'scompetitive advantageisthe branditself.People are generallyhappyand
satisfiedwiththe servicesanditemsofferedbyGiordanobecause theyhave ahighreputationinthe
market.The staff hired,onthe otherhand, are well-trainedandselectedbyexpertinterviewers.In
exchange,these employeesare notpaidas muchas those at othercompanies,butGiordanoprovides
themwithbonusesthroughout the year.One benefitisthatfewerpeopleateachGiordanoare given
limitedauthoritytomake anyabruptor significantdecisions,whichsavestime andfostersemployee-
employertrust.Yes,these advantagesare durable because nocompetitorhasactually enteredthe
marketto compete withGiordano,andas a result,theyare one of the leadingorganizationsinthe world
of servicesthatare suppliedtobothcustomersandemployers.Giordanohasalsoreceivedawardsina
varietyof locationsformaintaining theirbrandasa well-knownbrandinabout more than40 nations
throughoutthe world.All of these advantageshave alreadyoccurred.Customerscanstill be made
aware of theirservicesinthe future if theyimprovetheirservices,make appropriate investments,
manage trainedworkers,andbudgettheirresources.Becausetheydonothave a branch inEurope,
theirmainfocusinthe future shouldbe onEuropeancountries.Giordanoshouldfocusmore on
customerservice andmake appropriate investmentsinorganizationalgoals,recruitment,andemployee
traininganddevelopment.
4) Giordano'scompetitive advantages,suchascomputerizedsystemsanddataflow acrossbranches,
will make itslightlymore difficultforthemtooperate inothernations.Giordanorequiresstrongand
powerful softwarethatcanbe operatedacrosscontinentsinordertoconstruct suchIT-basedsolutions.
Noteverycountry,suchas Asiancountries,adherestothe same setof rulesand ideals.Infact,European
countrieshave more advancedITsystems,makingfora fierce competition.However,the rivalryto
conduct theirtransactionswill be veryimpossible forthem.However,theycancontinue tooperate ona
small systemthatcan communicate dataacross multiple citieswithinthe same country, andthe
headquarterscanthensendthe data to the mainheadquartersinHongKong.With differentbrands
fromdifferentnationsbeingplacedinthe mix,competitionisheatingup.Forexample,The Gaponly
worksinthe UnitedStates,Europe,andJapan,whichare the world'smajor industrial countries.Espiritis
presentinpracticallyeverycountryonthe planet,yetThe Gapgeneratesahigherprofitmarginthan
Espirit. These twocorporationsare the mostpowerful inthe worldtoday.GiordanoItwill be extremely

3. difficulttoretainapresence inthismarketandthe same reputationasin Asianmarkets.Recruitingnew
personnel inanewmarketissimple,buttrainingthemonexistingstrategiesinanew marketisa little
more difficult.The marketsof Asia andothercountriesare vastlydifferent.Asaresult,Giordanomust
thoroughlyanalyze andcomprehendthe marketinordertofunctionefficientlywhilemaintaininga
positive reputationandcompetitiveadvantagesinthe new market.Theycan,however,continue to
operate inAsiannationsanddeveloptheirbusinessinothercountriesona small scale andon a regular
basis.
5) Initially,therewasnothingthatdisturbedthemintermsof customerservice.Giordanoquickly
became a trendas theybeganoperatinginothernations.However,eachcountry'sgrowthpotential is
unique. Lebanese consumershave distincttastesandstylesfromthose inothercountries.Asaresult,
while marketingmethodsmaybe similar,the extentof reactiondiffers.Atthe operationallevel,each
countryhas a unique approachfor persuadinganddelightingitsclients.Thisisdependentonthe
management'sapproachtopersonnel developmentandtraining.Employeesare typicallythe oneswho
contact withcustomersona dailybasisat the operational level.Thesetacticsnecessitate extensive
planningandcommitmentinaspecificundertaking.The tacticsusedare determinedbythe country's
marketingapproach.To attract customers,eachstore,management,andcountryemploysitsown
strategies.Some offerdiscounts,while othersoffersales.These are marketingstrategiesusedbytheir
managementtoentice clients.Itisusuallydeterminedbyhow profitable thatparticularstore is.Italso
dependsonthe economicsof the countryinquestionandthe management'sapproachtotheirbusiness.
Giordano'skeymethodsof value formoney,service differentiation,inventorycontrol,andspeedy
distributioncentersare exceptionalandamazinginanyregion.The cheapestandquickestwaytoreport
to the headquartersistorelaythe transactionthroughotherbranches.