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Analysis Of Giordano Holdings Limited

5271 words - 21 pages

Executive SummaryGiordano Holdings Limited is a leading high-quality discount clothing manufacturer and retailer based in Hong Kong. The company has a striving geographical growth program with recently successful operations in several Asian countries. An emphasis of customer service is the basis of Giordano's competitive advantages. Combined with intense staff training regimes and a unique managerial approach, Giordano is also a market technological leader with highly efficient distribution channels. The contents of this strategic plan predominantly focus on Giordano's prior and proposed strategic operations in the Hong Kong apparel market at large. The relatively stable future predictions of the Hong Kong economy provide a certain level of planning confidence to marketing planning. The Sino-British Joint Declaration in 1997 may, however, carry with it room for uncertainty and a possible economic downturn. The Hong Kong apparel industry is becoming increasingly competitive, driven by the free nature of the Hong Kong trade system. Giordano essentially aims to exploit the recent rise in disposable incomes to promote a higher-quality brand image primarily through improved product quality, increased pricing, store development and a 'trendy' advertising campaign. Through these means, the company aims for a 30% increase in sales turnover by 2007, aligned with a substantial 10% gain in market share.Company DescriptionThe Giordano label was introduced to the Hong Kong clothing retail market in 1981 as a relatively high-priced clothing retailer by the now well renowned marketing entrepreneur Jimmy Lai. Since 1987 the company has undergone a corporate makeover to position itself as a high-quality retailer of casual discount clothes. The company has also undergone substantial geographic expansion from Hong Kong, into other geographic markets including Taiwan, China and Singapore. The company has built a solid reputation for friendly, helpful service in a region where retailers frequently dissuade the customers from trying on clothes. Since applying computerisation, a tightly controlled menu, frugality and value pricing to its corporate strategy, total sales have surged to over HK$2.8 billion in 1994 (Ang 1996).Intensity of competition is quite high resulting in a need to determine and exploit competitive advantages through core competencies. Up to date, Giordano has been successful by excelling in customer service, minimizing production costs, and applying the latest software technologies to link its stores with its factories. Such corporate facets are the driving force behind an ambitious vision to become the best and biggest world brand in apparel retailing, and the mission to make people 'feel good' and 'look great'.Marketing Goals & Objectives* Horizontal integration - By expanding market share in existing markets Giordano will be able to enjoy the competitive advantages associated with economies of scale. We aim to increase market share 10% by...

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