Giordano-Positioning in international markets

Submitted by: Diju Daniel Donny Thomas Mugdha Joshi Sugandha Mehrotra Udita Sood

Executive Summary
Giordano was founded in Hong Kong in 1980 by Jimmy Lai. It is Asias one of the most su essfu! retai!er urrent!y o"erating in #ast Asia$ %outh& #ast Asia and 'idd!e #ast. (he su ess of Giordano an be attributed to se)era! fa tors su h as "ro)iding e* e!!ent ustomer ser)i e$ offering ustomer )a!ue for money$ understanding ustomer needs and wants. (hese attributes a tua!!y om"rise the om"anys om"etiti)e ad)antage. In addition to the om"etiti)e ad)antage other +ey su ess fa tors !i+e stringent se!e tion "ro edures and training of staff$ o"erating effi ien ies$ e*treme!y good in)entory ontro! and turno)er$ !ose integration of "ur hasing and se!!ing fun tions and short "rodu t de)e!o"ment y !e are the reasons behind the growth of the om"any and enab!ing the om"any to gain its ho!d in the g!oba! mar+et a!so su""orting its growth strategy$ g!oba! e*"ansion. (hese su ess me hanisms a!so he!"ed Giordano sur)i)e the Asian e onomi downturn and %A,% risis. (he -uestion is how Giordano an maintain its om"etiti)e ad)antage in the future and how an Giordano sustain its "ast su ess was "erha"s the most riti a! -uestion onfronting its management. Giordano has to riti a!!y e)a!uate its su ess strategies and sour es of om"etiti)e ad)antage. .erha"s$ it a!so needs to onsider re"ositioning itse!f in urrent and newer mar+ets to ontinue gi)ing its om"etitors a tough time and remain in the game. /urthermore$ Giordano a!so needs to understand whi h +ey su ess fa tors ou!d be maintained or e)en strengthened in the !ong run and whi h of them wou!d erode in the oming years. /urthermore$ another issue onfronting Giordano was whi h su ess fa tors ou!d be transferrab!e to other mar+ets during its e*"ansion to other Asian 0ountries. (hus$ there were se)era! issues that needs onsideration by the higher 'anagement at Giordano$ who ti!! now ha)e been -uite su essfu! with a!! their business endea)ors and growth strategies

Introduction

Giordano was estab!ished in 1981 by Jimmy Lia. It is a Hong Kong based retai!er of asua! !othes targeted at men$ women and hi!dren. (he om"any has four different brands aimed at targeting different ustomers. Giordano$ Giordano Ladies$ Giordano Junior and 1!ue %tar #* hange. In ear!y 2003$ the om"any was o"erating o)er 1300 retai! stores and ounters in some 41 mar+ets in the Asia& .a ifi and 'idd!e& #ast regions. Its main mar+ets were 'ain!and 0hina$ Hong Kong$ Ja"an$ Korea$ %inga"ore and (aiwan. It a!so had its "resen e is Austra!ia$ Indonesia and 'a!aysia. Giordano5s sa!es grew from HK6712 mi!!ion in 1989 to HK64$092 mi!!ion in 1999. In most geogra"hi mar+ets ser)i ed by Giordano$ the retai! !othing business was onsidered to be e*treme!y om"etiti)e. It was essentia! for Giordano to +ee" oming u" with inno)ati)e !ine of "rodu ts and ideas to maintain its "resen e and brand image in the g!oba! mar+et.

Company Background

Giordano o"ened its first retai! store in Hong Kong and a!so began to e*"and its mar+et by distributing Giordano mer handise in (aiwan through a 8oint )enture. In 1989$ it o"ened its first retai! out!et in %inga"ore. Giordanos su ess an be attributed to om"anys ontinuous fo us on 9 main or"orate )a!ues$ -ua!ity$ +now!edge$ inno)ation$ sim"!i ity and ser)i e. (he om"any has its own manufa turing units where a!! the a""are!s as "er the designs and !othing sty!es are "rodu ed. Giordano is +nown for its ine*"ensi)e and ontem"orary garments and is )ery simi!ar to the Ameri an based retai!er :Ga" In 1987 res"onding to s!ow sa!es$ Giordano hanged its "ositioning strategy. #ar!ier it had so!d e* !usi)e!y mens asua! a""are!. Howe)er$ when the management rea!i;ed that an in reasing number of fema!e ustomers were attra ted to its stores$ they re"ositioned the hain as a retai!er of )a!ue&for&money mer handise$ se!!ing dis ounted asua! unise* a""are! with the goa! of ma*imi;ing unit sa!es instead of margin. (his re"ositioning in reased the sa!es drasti a!!y. hange in

(o ma+e "eo"!e :fee! good and :!oo+ great was Giordanos or"orate mission. In 199< .eter Lau Kwo+ Kuen su eeded Lai and be ame 0hairman. .eter Lau be!ie)ed that a wi!!ingness to try new and un on)entiona! ways of doing business and to !earn from the "ast is the right attitude and this "hi!oso"hy a!so be ame an integra! "art of Giordanos organi;ationa! u!ture. 'oreo)er$ it was o+ to ma+e mista+es and that em"owerment wou!d minimi;e mista+es. =n the who!e Giordano had 8000 dedi ated sa!es staff in a!! its stores a ross different ountries. (he om"anys "hi!oso"hy of -ua!ity ser)i e ou!d be obser)ed not on!y in Hong Kong but a!so in its o)erseas out!ets. (he om"any had been honored by numerous ser)i e awards o)er the years.

Products Giordano has four om"any brands. Giordano$ Giordano Ladies$ Giordano Junior and 1!ue %tar #* hange$ these four brands were o"erating o)er 1300 retai! stores and ounters in some 41 mar+ets in the Asia& .a ifi and 'idd!e& #ast region.

Business and Corporate Strategy

Giordanos o)era!! strategy !aid em"hasis on riti a! as"e ts su h as high -ua!ity ser)i e$ fo us on de)e!o"ing em"!oyee ta!ent$ rea hing out to ustomers$ e*"!oring newer mar+ets to e*"and in the g!oba! arena. It "ositioned itse!f as a retai!er of )a!ue&for&money mer handise. It had a wi!!ingness to try new and un on)entiona! ways of doing business. (he firm was o"en to e*"eriment and introdu e new "rodu t ranges and design ustomi;ed "rodu ts for )arious segments. Philosophy and Value System Giordanos "hi!oso"hy was to !earn from "ast mista+es and "re"are for future ha!!enges as it be!ie)ed that this a""roa h wi!! ta+e the organi;ation in the right dire tion. It ga)e a omfort sense to its em"!oyees about ma+ing mista+es as it en ouraged the "ra ti e of ta+ing away the +ey !earnings from "ast errors. It a!so strong!y be!ie)ed em"owering its

em"!oyees to ontribute and "arti i"ate as mu h as "ossib!e to minimi;e mista+es. It fo used on understanding the ustomer needs and ser)es them we!!. Employees Focus Strategy Giordano had stringent se!e tion "ro edures to ensure that se!e ted andidates mat h the desired em"!oyee "rofi!e. %er)i e orientation and a"abi!ity he + was an integra! "art of these se!e tion "ro edures. It had in)ested hea)i!y in em"!oyee training and had been re ogni;ed for training and de)e!o"ing its staff from )arious "restigious institutions. It onsidered its front&!ine wor+ers to be its ustomer ser)i e heroes. (he em"hasis on training was with a )iew to hone the s+i!!s of the em"!oyees and enab!es them to "ro)ide best ustomer ser)i es and satisfa tion. Performance Evaluation Strategy ,egu!ar "erforman e e)a!uations were ondu ted at indi)idua! em"!oyee !e)e! as we!! as at store !e)e!. (he om"any had high!y rewarding "erforman e !in+ed in enti)e "!ans for its em"!oyees to dri)e higher "rodu ti)ity and en ourage interna! om"etition. (rainings organi;ed for the em"!oyees a!so assisted the staff to a -uire ne essary s+i!!s whi h need im"ro)ement. Giordano awarded the >%er)i e %tar? to indi)idua! em"!oyees$ based on nominations "ro)ided by sho""ers. Focusing Giordanos Organizational structure on simplicity and Speed (he om"any maintained a f!at organi;ationa! stru ture. (he om"anys de entra!i;ed management sty!e em"owered !ine managers and at the same time en ouraged fast and !ose ommuni ation and oordination. #ffe ti)e ommuni ation !eads to effi ient "ro8e t management and s"eedy de ision ma+ing. (his +e"t Giordanos "rodu t de)e!o"ment y !e short. uality Services

Giordanos )ision sin e in e"tion has been to dri)e to" -ua!ity ustomer ser)i e and "romote )a!ue for money mer handise. Its ommitment to ustomer ser)i e was ba +ed by se)era! 0ustomer %er)i e 0am"aigns and the @rm a!so re ei)ed numerous ser)i e& re!ated awards. Its management had !aun hed se)era! sty!e and -ua!ity the firms reati)e$ ustomer&fo used am"aigns and "romotions to e*tend its ser)i e orientation. 1esides its brand name$ !ogo$ ommitment to e* e!!ent ser)i e be ame an attra ti)e "ro"osition for ustomers to return to this brand. (he firm ame u" with inno)ati)e strategies to attra t a !arger ustomer base and initiated ustomer fo us "romotions$ its ser)i e "hi!oso"hy had three tenetsA >Be we! ome un!imited try&onsC we e* hangeDno -uestions as+edC and we ser)e with a smi!e.? Value for !oney "!id# price$ 0ustomers are !earning a !ot better about what is )a!ue. It is im"ortant to se!! the "rodu ts at hea"er rates. 0on)enien e is )a!ue for the ustomer. (ime is )a!ue for the ustomers. Giordano was ab!e to se!! )a!ue&for&money mer handise onsistent!y through arefu! se!e tion of su""!iers$ stri t ost ontro! and by resisting the tem"tation to in rease retai! "ri es unne essari!y. Central %istri&ution Center In order to ma*imi;e use of store s"a e for sa!es o""ortunities$ Giordano re"!a ed the fun tion of a ba + storeroom with a entra! distribution enter.

Product Strategy Giordano offered )arious attra ti)e o"tions to ustomers where they are gi)en an o"tion to return or e* hange the "rodu t if the "rodu t they "ur hased did not meet their e*"e tations. 0ustomers were a!so "ro)ided with e* iting o"tions to hoose the fairest "ri e they want to "ay for a "rodu t.

(he firms another strategy was to se!! a sma!! number of ore "rodu tsC Its stores featured no more than 100 )ariants of 17 ore items$ whereas om"eting retai!ers might feature 200 to 400 items. It be!ie)ed that mer handising a wide range of "rodu ts made it diffi u!t to rea t -ui +!y to mar+et hanges$ this a""roa h of restri ted range of "rodu ts has a!!owed Giordano to res"ond to mar+et hanges faster than its om"etitors$ and to +ee" osts down. Giordano had begun to re"osition its brand by em"hasi;ing differentiated$ fun tiona!!y )a!ue&added "rodu ts ine*"ensi)e$ yet !othes and broadening its a""ea! by im"ro)ing on )isua! ontem"orary&!oo+ing out@ts a""ea!ed to mer handising and a""are!. Giordanos re!ati)e!y mid&"ri ed "ositioning wor+ed we!!D Asias fruga! ustomers$ es"e ia!!y during a "eriod of e onomi s!owdown. (he om"any fo used on an im"ortant on e"t of )a!ue for money whi h ontinuous!y im"ro)es the )a!ue of the "rodu t.

Case 'nalysis Giordano's Problems As we ha)e !earnt that when a 0om"any undergoes e*"ansion "!ans it undergoes )arious ha!!enges. #)en in Giordano ase as the om"any has "resen e main!y in Asia and 'idd!e east$ due to stiff om"etition$ the om"any de ided to see+ growth in 2003.As the om"any hanged it strategies it fa ed a !ot of ha!!enges. (he "rimary three issues that the om"any fa ed wereA /irst!y$ the main issue that Giordano fa ed was with the "Positioning". As there wou!d be different strategies for different mar+ets$ the om"any wanted to +now how to "osition its brand in both in the new and the e*isting mar+et. (he %e ond issue that Giordano fa ed was the issue of "Sustainability". As mentioned abo)e that the om"any fa ed stiff om"etition the om"any ma8or!y fa ed the issue of sustainabi!ity as the ustomer taste and "referen e defined the trends in Giordano5s fashion. (hus$ sustaining tough mar+et om"etitors on different soi!s "osed as another ha!!enge.

(he third issue was re!ating to the "Growth strategy" of Giordano. As different mar+ets had different "referen es$ ada"tabi!ity "osed as a serious on ern in Giordano. 0onsidering the SE(V )'* 'ttri&utes$ we an ana!y;e it on the fo!!owing groundsA (elia&ility E ,e ei)ed numerous ser)i e re!ated awards. #gA In 2009 1est ser)i e .erforman e. (esponsiveness# %er)ing ustomer is "riority for store teams. 'ssurance# %taff trained to re a!! names and !ast "ur hases. (raining enhan es 8ob +now!edge F onfiden e. Empathy + >Be ser)e with a %mi!e. ,angi&les # %er)i es a"e Be sha!! now ana!y;e ea h issue in detai! and sha!! !oo+ into the "ossib!e so!ution for the sameA (epositioning against CompetitorsOsama Tala, a well known author of sell your brains for profits states that,"A Positioning Strategy results in the image you want to draw in the mind of your customers, the picture you want him her to !isuali"e of you what you offer, in relation to the market situation, and any competition you may ha!e". As "er Giordano$ the "rodu t strategy that the om"any reated was that of mid "ri ed$ ine*"ensi)e yet ontem"orary !oo+ing outfit with )a!ue for money. (his he!"ed Giordano in gaining strong mar+et footho!d as a trendy unise* a""are! outfit om"any. (he 0om"any was su essfu! in fi!!ing in the ga" by being a de ent brand and at the same time it was ost effe ti)e. (he 0om"any a!ways fo used on -ua!ity of %er)i e. (he staff was "ro a ti)e in not on!y he!"ing the ustomers but a!so in +nowing the ustomers tastes and "referen es. If we see Giordano "ositioning$ the om"any ho!ds a brand )a!ue in the eyes of the ustomers. (hus$ if the om"any de ides to re"osition itse!f. It might end u" !osing what it has attained as it might reate doubt or ambiguity amongst the e*isting !ients. As we ha)e !earnt that the om"any not on!y fo uses in reating new !ients$ but the om"any main

fo us !ies in retaining the e*isting !ients. (hus$ the om"any must not try to hange its "ositioning as it might end u" !osing its urrent mar+et share in the e*isting mar+ets. Howe)er$ we be!ie)e that Giordano an a!ter its brand image into high )a!ue$ high&-ua!ity$ high end mar+et. (his ou!d mean re"ositioning Giordano as a high "ri ed F high )a!ue brand in some mar+ets in the wor!d. (his ou!d mean that Giordano ou!d bring in a "ri e hi+e of 9&10G in the mar+et. %tatisti s "ro)e that a 9&10G "ri e hi+e doesn5t affe t the onsumer mar+et to a !arge e*tent. (hus the ris+ of !osing the ustomers de reases. Be re ommend Giordano to ontinue its reati)ity in "romotions. As we ha)e !earnt through the ase that Giordano5s "romotions !i+e H%im"!y Kha+iH$ HIoga 0o!!e tionH he!"ed Giordano reate a ni he in front of its om"etitors. (hey shou!d s"end more on their traditiona! ad)ertising as Giordano s"ends !ess on ad)ertisement un!i+e its om"etitors. It5s )ery !ose #s"irit reates a H!ifesty!eH image e)en though their strategies are )ery simi!ar to ea h other. Giordano ou!d re"ositions its brand image as more sty!ish and !ifesty!e in its "romotions and not 8ust brand. Another noti eab!e fa tor in Giordano is that fa t that the om"any fo used on !imiting the "rodu t !ine. %o to say that the om"any stores featured no more than 100 )ariants of 17 ore items. (his made it easier for the om"any to bring in hanges with the hanging trends with the hanging onsumers tastes and "referen es. ,egarding the on ern of Giordano hanging its strategies or +ee"ing the same strategies for different mar+ets. It de"ends on the mar+et onditions of the indi)idua!s as there must be some mar+ets whi h are ustomi;ed and some whi h are standardi;ed. %ome of Giordano5s strategies ha)e been )ery su essfu! and has he!"ed the om"any gain !ot of su ess !i+e&Ja!ue for money$ (he om"any shou!d ontinue the same strategy and shou!d standardi;ed. (he om"any ou!d standardi;e the "ro ess in Asia e* e"t some "arts. =n the other side$ strategies !i+e In)entory ontro! and good ustomer ser)i e ha)e he!"ed Giordano reate a strong brand image. the om"any shou!d thus )ery ta tfu!!y a""!y these strategies in different mar+ets. (hus to say that the ustomi;ed strategies some ountries regarding e onomy$ u!tures and )a!ues. (ecommendation "'gainst Competitors$ ou!d be de)e!o"ed for different ountries e)en within Asia be ause there are some )ariation in

In order to om"ete with a!! its main om"etitors fo!!owing are the ste"s that an be ta+en by Giordano to fa e tough om"etition and ontinue to maintain its g!oba! "resen e and brand image. Giordano shou!d en ourage and fo us more on 0ustomer ,e!ationshi" .rograms. (hey shou!d in)o!)e themse!)es in "ro)iding more ustomi;ed "rodu ts to their ustomers. Im"!ement 0ustomer .yramid on e"t& ustomers shou!d be ategori;ed a ording to the number of "ur hases made from Giordano stores. 0ustomers with ma*imum "ur hases o)er a gi)en "eriod an be gi)en the .!atinum ard$ fo!!owed by Go!d F %i!)er ards. (his "ra ti e wi!! enab!e to "ro)ide additiona! ser)i es and attention to those who show !oya!ty towards the brand and fre-uent!y )isit Giordano stores. (his wi!! +ee" the regu!ar ustomers ha""y$ this way they wi!! ontinue )isiting stores and a!so fee! !i+e s"e ia! ustomers who are e!igib!e for s"e ia! treatment K ustomer de!ightL 'oreo)er$ Giordano shou!d de)e!o" so ia! bonds by bui!ding "ersona! re!ationshi"s with ustomers. /or e*am"!e$ wishing the ore ustomer on birthdays F anni)ersary with dis ount ou"on. .!atinum 0ard E Greeting with 10G dis ount ou"on. Go!d 0ard E Greeting with 9G dis ount ou"on. %i!)er 0ard E Greetings. (epositioning in E.isting mar/et Giordano as we ha)e !earnt has been )ery su essfu! in Hong Kong and in a!! its e*"ansion )entures with its urrent mode! of its ser)i es. As we ha)e e)en !earnt that Giordano has been fa ing intense om"etition from 1ossinni$ Hang (en$ GA. . (hus$ its ser)i e mode! of e* e!!ent ustomer ser)i e an be imitated. Another fa t that an wor+ in Giordano fa)or is that there is no ustomer ga". (hat is what Giordano "romises its ustomers. It is been ab!e to de!i)er the same. 0ustomer is treated with utmost im"ortan e. Giordano has been ab!e to de!i)er a!! its "romises thus minimi;ing the s o"e of any "ro)iders ga".

(he staff at Giordano is we!! trained and fo used on ustomers5 needs and satisfa tion. (hus$ the !istening Ga" is we!! o)ered by !earning the ustomers tastes and "referen es. Know!edge of ustomer need is we!! understood. Giordano in)ests hea)i!y in em"!oyee training and has been re ogni;ed for its ommitment to training and de)e!o"ing its staff by su h awards as the Hong Kong 'anagement Asso iation 0ertifi ate of 'erit for #* e!!en e in (raining et . %u h awards minimi;es the %er)i e .erforman e Ga" as they are e* e!!ent in their ser)i es. Giordano ore om"eten y !ies in their sim"!i ity. (his o)ers the %er)i e design and standards ga". (he om"any o)er time and again to beat om"etition has been hanging its strategy to +ee" u" with the hanging onsumer trends and to maintain its mar+et share. (he 0om"any has been ab!e to redu e the 0ommuni ation ga" by !aun hing ser)i e re!ated am"aigns. (hus$ it wi!! be easy for Giordano to retain its mar+et share in the e*isting mar+ets. (ecommendation "(epositioning in E.isting mar/et$ 0onsidering the urrent "ositioning by Giordano is su essfu!$ we fee! there is no need for re"ositioning in the e*isting target mar+et o)ered by the om"any. Howe)er$ as e)ident from the ase om"etition is intense and the ustomer ser)i e ta ti s an be imitated. (herefore$ one of the re ommendations to the om"any wou!d be to ontinuous!y +ee" bringing about inno)ation in their ser)i e mode! whi h needs to be de)e!o"ed from time to time. /urthermore$ Giordano shou!d fo us more on ustomer retention. It is im"ortant to attra t new ustomersC howe)er$ it is e)en more im"ortant to retain them. (he ost in urred due to a !oss of regu!ar ustomers an be huge and om"anies shou!d try their best to retain a!! their ustomers who benefit the om"any during their !ife time K ustomer !ife&time )a!ueL. Another re ommendation wou!d be to re ruit a "rofessiona! /ashion assistant who "ossesses s+i!!s to "ro)ide trendy fashion ti"s to "!atinum and go!d ard ho!ders. =n e in a whi!e ustomers may need a fashion ti" and su h "ri)i!eges gi)en to se!e ted ustomers wi!! a!so be ost&effe ti)e and he!" in retaining )a!uab!e ustomers. In s"are time the

"rofessiona! assistant ou!d a!so "ro)ide training and guidan e to Giordanos sa!es for e to u!ti)ate a sense of fashion who an then in turn "ro)ide some fashion re!ated assistan e to ustomers in genera!. %ifferent Positioning Strategies for different mar/etGiordano has another o"tion when it omes to its growth strategy and that is the different "ositioning strategies for different mar+ets. As we +now that different mar+ets ha)e different ty"es of onsumers whi h ha)e different needs. As the target mar+et is different$ the set target ustomers are a!so different. %imi!ar!y$ the ustomer needs hanges from "!a es to "!a es. (hus$ a different "ositioning for different mar+ets is needed. A!so$ when Giordano wi!! onsider different mar+et. It wi!! ha)e to understand the s"ending "ower of the onsumers in that "arti u!ar mar+et. %ome ountries !i+e .hi!i""ines ha)e greater s"ending "ower than M% where ustomers are more )a!ue oriented. (hus$ "ri e -uotation wi!! )ary in both the mar+et. Giordano wi!! a!so fa e different om"etitors in different mar+ets. Li+e GA. emerged as a ma8or om"etitor in M%A for Giordano and in the home ountry Giordano fa ed om"etition from Hang (en$ 1ossini$ 1a!eno et that ser)ed the same target audien e and ga)e good om"etition to Giordano. (hus$ the strategy that Giordano wou!d aim to +ee" in home ountry annot be simi!ar as that of M%A as the target audien e and the mar+ets are different. (hus$ the "rodu ts$ "ri e$ "!a e$ "eo"!e a!! wi!! )ary in different mar+ets. (ecommendation "%ifferent Positioning Strategies for ne0 mar/ets$ Giordano shou!d not re"osition itse!f in the e*isting mar+etsC howe)er$ they shou!d ado"t different "ositioning strategies for entering new mar+ets. /o!!owing are the re ommendations that wi!! he!" Giordano to estab!ish itse!f in new mar+ets. (hey shou!d be onsistent it their ser)i e and the -ua!ity of their mer handise. Giordano shou!d ondu t 'ar+eting ,esear h to identify !atest fashion trends$ urrent sty!e of the ountry and the u!tura! differen es and simi!arities that e*ist in the "arti u!ar ountry. 'oreo)er$ it is a!so im"ortant to gather information about

the e onomi buyers.

onditions in the ountry to be ab!e to 8udge the "ur hasing "ower of

0urrent su essfu! strategies used in e*isting mar+et$ an be used by Giordano as a guide!ine de"ending on the mar+et situation and ustomers re-uirement.

/ina!!y$ Giordano shou!d

ontinue in)estigating to find o""ortunities in new

mar+ets !i+e North Ameri a and #uro"e. (hey shou!d try to find out about their om"etitors in North Ameri a and #uro"e and understand if they an gi)e them om"etition or wi!! they su umb to the "ressures.

Sustaina&ility and ,ransfera&ility 0om"etiti)e Ad)antage (he om"any ben hmar+ed its se!f in )arious as"e ts to the industry5s best "ra ti es for instan e whi h ga)e the om"any an edge o)er the othersA 0om"uteri;ation Kfrom (he LimitedL$ A tight!y ontro!!ed menu Kfrom ' Oona!dsL$ /ruga!ity Kfrom Ba!&'artL$and Ja!ue "ri ing Kas im"!emented at the 1ritish retai! hain 'ar+s F %"en erL. %trong front!ine defenseA (rained and dedi ated staff with a fo us on -ua!ity ser)i e. Oe entra!i;ed management sty!eA #m"owered !ine managers and brought !ose ommuni ation and o&ordination. %"eedy ="erationsA (his +e"t the "rodu t de)e!o"ment y !e short. (his he!"ed in disengaging from manufa turing and fo us on retai!ing.

1rand ,e ognitionA (he organi;ation was re ogni;ed for its )a!uab!e fo us on ustomer ser)i e and em"hasis it !aid on de!i)ering high&end ustomer )a!ue satisfa tion.

(ecommendation Be fee! that a!! the Key %u ess /a tors wi!! sustain in the e*isting mar+et in the !ong run. Howe)er$ mar+et resear h an be ondu ted to understand if any hanges need to be brought in any of the ore om"eten ies. In future$ K%/s re!ated to ser)i e shou!d be de)e!o"ed sin e "rodu t is a!most simi!ar among the om"etitors. Im"!ying more em"hasis shou!d be gi)en to fa tors !i+e dedi ated wor+for e and -ua!ity of ser)i e by means of im"ro)ed training and more refined re ruitment and se!e tion "ro edures. %in e o"erating ost from 0hina has in reased they an outsour e to other ountries or in rease the "ri e. (his he!" Giordano sustain its om"etiti)e ad)antage of :)a!ue "ri ing K%/s an be transferab!e into new mar+et but with ertain hanges suiting the needs and understanding of the "arti u!ar mar+et.

Conclusion Be an on !ude by that that Giordano is ha)ing a strong ser)i e mode! and "rodu t in e*isting mar+et with a strong growth o)er the years. %staying ahead with this mode! in the e*isting mar+et is diffi u!t as it an be easi!y imitated. (herefore$ Giordano needs to ontinuous!y bring inno)ati)e ideas as to how sa!es staff res"ond to ustomers need and de!ight them. #)en if its om"etitors imitate their ser)i e mode!$ Giordano a!ways needs to stay a ste" ahead. It is im"ortant to rea!i;e that new mar+et needs more understanding before entering them and the om"any shou!d aim at Oe)e!o"ing F bui!ding the on e"t of >0ustomer as "artners?