Strategic Audit of Sana Safinaz 2023

Name:
Sawaira Qureshi (13390)
Bismah Akbar (11595)
Saira Khalid (13280)
Faiza Mazhar (8941)
Abeer Sultan (45913)
Submitted To: Sir Nabeel Abid
Business Policy and Strategy
6/12/2023
Table of Contents
1. Current Situation of Sana Safinaz............................................................................................3

1.1. Current Performance.........................................................................................................3

1.2. Mission..............................................................................................................................3

1.3. Vision................................................................................................................................4

1.4. Strategies of Sana Safinaz.................................................................................................4

2. Strategic Managers of the Company........................................................................................8

3. External Environment Analysis..............................................................................................10

3.1. Political...........................................................................................................................10

3.2. Economic........................................................................................................................11

3.3. Social...............................................................................................................................11

3.4. Technological..................................................................................................................12

3.5. Environmental.................................................................................................................12

3.6. Legal................................................................................................................................13

4. Internal & External Factors of Sana Safinaz..........................................................................14

4.1. SWOT Analysis of Sana Safinaz....................................................................................14

4.2. IFE Matrix for Internal Assessment................................................................................17

4.3. EFE Matrix for External Assessment..............................................................................18

4.4. IE Matrix.........................................................................................................................19

4.5. Competitive Profile Matrix.............................................................................................20

5. Strategy Formulation Analytical Framework.........................................................................22

5.1. TOWS Matrix.................................................................................................................22

5.2. SPACE Matrix................................................................................................................23

5.3. BCG Matrix.....................................................................................................................26

5.4. Grand Strategy Matrix....................................................................................................27

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Conclusion.....................................................................................................................................31

Recommendations..........................................................................................................................31

References......................................................................................................................................33

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 1. Current Situation of Sana Safinaz

Sana Hashwani and Safinaz Muneer launched the well-known Pakistani fashion label Sana
Safinaz in 1989. The brand has established itself as a significant participant in the Pakistani
fashion market, providing various clothing, including pret, luxury pret, and wedding attire. As of
2021, the firm has 27 outlets in Pakistan and has increased its foothold in overseas countries such
as the Middle East, the United Kingdom, and the United States (Sana Safinaz, 2023).

1.1. Current Performance

Notwithstanding the challenging economic climate created by the COVID-19 epidemic, Sana
Safinaz has maintained a healthy financial position. Sana Safinaz has expanded its consumer
base in addition to increasing its income. The company's brand recognition has grown
dramatically, and it has become a popular option among Pakistani ladies who value high-quality
apparel that is trendy and distinctive. Its popularity has resulted in a rise in clients visiting Sana
Safinaz shops and buying their items.

Sana Safinaz has used numerous techniques to maintain its present performance. The firm has
concentrated on offering high-quality items that appeal to many client groups, such as pret,
luxury pret, and wedding wear. Sana Safinaz has increased sales by broadening its product line.
Moreover, Sana Safinaz has used digital marketing and e-commerce channels to attract a larger
audience.

The firm has launched an online shop, making its items accessible to clients all over the globe.
This approach has allowed the corporation to increase its consumer base while providing its
customers with simple alternatives. Sana Safinaz has also invested in its supply chain and
logistics to guarantee the timely delivery of items to clients. This investment has allowed the
organization to deliver a better customer experience, increasing client loyalty and repeat
business.

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 1.2. Mission

Sana Safinaz's mission is "Fashion innovates with the quality they prefer quality as the key to
success."

1.3. Vision

Sana Safinaz's vision is to "capture the retail fashion and bridal market."

1.4. Strategies of Sana Safinaz

Sana Safinaz is a premium apparel label that values quality and design. The firm aims to supply
its consumers with one-of-a-kind and original fashion goods that represent their style and
individuality. Sana Safinaz's mission is to become an internationally known brand that
establishes trends and inspires fashion aficionados worldwide. Sana Safinaz has employed
numerous essential initiatives to attain its strategic stance. The firm has concentrated on growing
its product line to meet the needs of various client categories, such as wedding wear, pret, and
luxury pret. As a result, the firm has attracted a more extensive consumer base, contributing to its
development. Sana Safinaz has also been growing its worldwide reach. The organization has
used digital marketing and e-commerce channels to reach a larger audience.

I. Online Presence

Sana Safinaz has established a strong online presence by developing an e-commerce website and
social media accounts to exhibit its items and engage with consumers.

II. Customer Engagement

The firm has employed several techniques to increase client involvement, such as individualized
styling services, loyalty programs, and social media competitions.

III. Innovative Marketing

Sana Safinaz has used unique marketing strategies to promote brand exposure and reach a larger
audience, such as engaging with bloggers and influencers.

IV. Product Innovation

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The firm has been constantly launching new and creative goods, such as eco-friendly textiles, to
keep ahead of the competition and respond to changing client tastes.

V. International Expansion

To tap into new markets and boost its worldwide presence, Sana Safinaz has extended its
international footprint by establishing shops in important locations like the United Arab Emirates
and the United Kingdom.

VI. Sustainable Fashion

Sana Safinaz has invested sustainably by incorporating eco-friendly textiles and methods into its
supply chain and adopting waste reduction and environmental impact initiatives.

VII. Quality Control

The firm has developed stringent quality control systems to guarantee that its goods satisfy the
highest quality and workmanship requirements.

VIII. Product Strategy

Sana Safinaz's product strategy includes providing a variety of high-quality fashion items, such
as wedding wear, luxury pret, and pret wear. In addition, the firm has launched new and creative
items, such as a line of eco-friendly materials. Sana Safinaz sells a variety of popular items,
including:

 Muzlin Lawn Collection

 Bridal Collection

 Luxury Pret Collection

 Pret Collection

 Eco-Friendly Fabrics

IX. Price Strategy

Sana Safinaz's pricing approach emphasizes value for money. The firm's goods are reasonably
priced, emphasizing offering high-quality items at moderate pricing. Sana Safinaz's product

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prices vary based on the collection and the kind of product. The following are some standard
pricing ranges:

 Muzlin Lawn Collection: PKR 3,500 - PKR 6,000

 Bridal Collection: PKR 150,000 - PKR 400,000

 Luxury Pret Collection: PKR 15,000 - PKR 75,000

 Pret Collection: PKR 4,500 - PKR 25,000

X. Place Strategy

The distribution strategy of Sana Safinaz includes making its goods accessible via various
outlets. The firm has its retail outlets strategically and works with prominent merchants to
market its items. Sana Safinaz has recently created an online store to provide clients with a
convenient buying option. Sana Safinaz goods are widely accessible in the following locations:

 Sana Safinaz Flagship Stores

 Leading Retailers such as Ensemble and Labels

 Online Store

XI. Promotion Strategy

Sana Safinaz's marketing approach is to increase brand awareness and communicate with
customers. The firm has used various techniques to promote its brand, including advertising
campaigns, partnerships with bloggers and influencers, and social media marketing. The firm
also provides individualized styling services and reward programs to increase client involvement.
Sana Safinaz's most popular promotional tags include the following:

 #SanaSafinaz

 #SSUnstitched

 #SSBridal

 #SSPret

 #SSLuxuryPret

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Additionally, some of the popular influencers who have collaborated with Sana Safinaz to
promote its brand and products are:

 Ayeza Khan (@ayezakhan.ak)

 Zara Peerzada (@zarapeerzada)

 Sadaf Kanwal (@sadafkanwal)

 Sana Javed (@sanajaved.official)

Overall, Sana Safinaz's marketing approach focuses on providing high-quality items at

affordable rates, offering a convenient shopping option, increasing brand recognition, and
engaging consumers via numerous media. Sana Safinaz has retained a strong brand identity,
boosted market share, and extended its worldwide reach by using these marketing methods.

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 2. Strategic Managers of the Company

The top management & directors of Sana Safinaz can be seen in the image below.

Sana Safinaz
Directors

Safinaz Muneer Sana Hashwani

Founder Founder
Director Director

Adnan Harron Ammar Belal Saba Tariq

Director Director Director

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 Uzma Khan CEO

Product & Engineering Finance HR Marketing Operations

Muhammad Azeem
Muhammad Dani Arsal Ahmed Reema Hassan Saleha Malik Tahir Rehman
Brand Manager
Assistant IT Manager Senior Finance Manager Assistant Manager HR Brand Manager Marketing Senior Manager SC

Manager 1 Manager 5 Managers 2 Manager 5

Individual Contributer 2 Individual Contributer 2 Individual Contributer 1 Director 1

Individual Controbutor 1

(Source: Rocket Reach, 2023)

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 3. External Environment Analysis

Political

Legal Economic

PESTEL
Environmental Social

Technological

(Source: Zulfiqar, 2018)

3.1. Political

 Pakistan's political instability and poor law and order environment might cause supply
chain interruptions, resulting in greater prices and delayed delivery. This can influence
Sana Safinaz's profitability and capacity to satisfy consumer demand.
 The government's trade and tax policies may influence the cost of raw materials,
manufacturing, and distribution. Any changes in import duties or taxes on luxury items
might impact on the profitability of Sana Safinaz.
 Fluctuating tensions between Pakistan and India may impact Sana Safinaz's sales in
India, an important market for the brand.

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3.2. Economic

 Sana Safinaz works in an economic climate of rising inflation and declining consumer
buying power. In Pakistan, inflation reached 35.4% in March 2023 (Take Profit, 2023).
This may affect the company's sales and profitability since customers may be less eager
to spend on luxury items.
 Furthermore, the textile sector, which accounts for more than 60% of Pakistan's exports,
has faltered. As of February 2023, exports have decreased by 29% yearly, reaching $487
million. Total textile exports fell 11% to $1.35 billion from July 2022 to February 2023,
compared to the previous fiscal year. This may raise the cost of raw materials,
manufacturing, and distribution for firms like Sana Safinaz, further diminishing profit
margins.

3.3. Social

 Sana Safinaz works in a world where customer behavior is influenced by cultural and
social conventions. The corporation must be sensitive to cultural differences and
appropriately tailor its marketing and product offers. For example, the corporation has
introduced a line of modest attire to meet the demands of a conservative clientele.
 Pakistan has a youthful population, with more than 60% of the population under 30
(World Bank, 2022). This provides Sana Safinaz with a chance to meet the fashion
demands of young customers by providing contemporary and economical apparel
alternatives. The organization may use digital marketing and social media outlets to reach
this demographic.
 With social media's growing popularity, influencers play an increasingly essential role in
molding consumer preferences and purchase choices. Sana Safinaz has worked with
several Pakistani celebrities and influencers to market its goods and raise brand
recognition within their respective audiences. For example, the business teamed with
popular Pakistani actress Mahira Khan for its lawn collection promotion, gathering a
great customer reaction.

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3.4. Technological

 Sana Safinaz works during fast technological development, with new technologies
always developing. To be competitive, the organization must keep up with these
developments. For example, to meet the increased demand for online purchasing, the
corporation has invested in e-commerce platforms.
 The growing use of mobile devices like smartphones has changed how people purchase.
Sana Safinaz may capitalize on this trend by creating mobile apps that provide users a
simple and smooth purchasing experience.
 The textile and garment sector is extremely competitive, and firms incorporating new
technology such as 3D printing and augmented reality may gain a competitive edge. Sana
Safinaz may leverage these technologies to create more interactive, immersive product
designs and showcases.
 The COVID-19 epidemic has hastened the adoption of digital technology, which Sana
Safinaz may capitalize on by providing virtual try-on and fitting services. The
organization may also use data analytics and artificial intelligence to customize its
services and deliver a more personalized experience to customers.

3.5. Environmental

 Sana Safinaz works in an atmosphere where customers are concerned about

environmental sustainability and climate change. The firm must implement sustainable
processes to reduce its environmental effect and fulfill the rising demand for sustainable
fashion. For example, the firm has introduced a line of environmentally friendly textiles
and employs recycled materials in its packaging.
 The textile sector is well-known for its contribution to pollution and waste. Using a
sustainable supply chain and manufacturing practices, Sana Safinaz may lower its
environmental impact. For example, the firm might employ renewable energy and install
water-saving measures.
 The COVID-19 epidemic has brought to light the significance of health and cleanliness.
Sana Safinaz may emphasize health and hygiene by employing eco-friendly disinfectants
and encouraging ethical and fair labor standards across its supply chain.

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 Sana Safinaz may capitalize on the increased demand for sustainable fashion by
emphasizing its environmentally friendly and socially responsible methods. Marketing
and advertising efforts that showcase the company's commitment to sustainability may be
used to attract environmentally concerned customers.

3.6. Legal

 Sana Safinaz must abide by several labor rules in Pakistan, such as minimum pay
legislation, working hour requirements, and workplace safety standards. Noncompliance
with these rules may result in legal fines and harm the company's image.
 The Pakistani government charges various taxes and penalties on textile exports. Sana
Safinaz must follow these requirements and ensure its export documentation is correct
and current. Noncompliance with these standards may result in delays or penalties.
 Sana Safinaz must verify that none of its goods or services violate any intellectual
property rights. For instance, the corporation must guarantee that its designs and logos do
not violate any existing trademarks or copyrights.
 The Pakistani government has implemented several programs and measures to help the
textile and garment sector flourish. For example, the Textile Policy 2020-25 wants to
raise textile exports to $20 billion by 2025. Sana Safinaz may profit from these policies
by using government incentives and subsidies to grow its operations and increase its
competitiveness.

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 4. Internal & External Factors of Sana Safinaz

4.1. SWOT Analysis of Sana Safinaz

Strong Brand Reputation High Pricing

Wide Product Range Limited Target Market
Unique Design Aesthetics Overdependence on
Strong Distribution Network Traditional Designs
International Presence Customer Service Challenges
Limited Online Presence

Strengths Weaknesses

Threats Opportunities

Intense Competition Market Expansion

Counterfeit Products E-commerce Growth
Economic Factors Collaborations
Changing Fashion Trends Sustainable Fashion
Fast Fashion Competitors Social Media Marketing

(Sana Safinaz, 2023; Think with Google, 2017)

Strengths:

i. Sana Safinaz has a strong brand image due to her fashion business work. Customers
trust and remain loyal to the brand because of its reputation for producing high-
quality apparel.
ii. Wide Product Selection: Sana Safinaz provides a variety of items to meet the needs of
various consumer groups. The brand offers solutions for many situations and
consumer preferences, including pre-formal dresses, formal wear, bridal wear, and
accessories.
iii. Design Aesthetics That Stands Out: Sana Safinaz is renowned for its distinctive
design aesthetics that combine traditional and modern features. The company
produces fashionable and stylish costumes that appeal to a broad audience by

14
 imaginatively fusing elaborate needlework, luxurious materials, and contemporary
styles.
iv. Strong Distribution Network: Sana Safinaz has a dependable distribution network
consisting of its flagship stores and a presence in multi-brand stores and online
marketplaces. Because of this vast network, clients in many areas may quickly get the
brand's items.
v. International Presence: Sana Safinaz has effectively grown its market share outside
Pakistan and is well-known there. The brand has become more well-known thanks to
its exposure abroad, creating prospects for expansion and rising sales.

Weaknesses:

i. Pricing: Sana Safinaz goods are frequently considered more pricey than certain
brands on the market. This pricing strategy may make it less accessible to price-
sensitive clients, diminishing market share.
ii. Limited Market: The brand primarily targets high-end and upper-middle-class
consumers. Although this concentration enables the brand to keep its exclusivity and
premium image, it may limit the range of customers it may attract and its ability to
expand into lower-income areas of the market.
iii. Overreliance on Traditional Designs: Although Sana Safinaz is praised for fusing
traditional and modern designs, there is a danger of being overly dependent on
traditional aesthetics. Customers that favor more cutting-edge and experimental
fashion trends may find the brand less appealing.
iv. Customer service difficulties: Some customers have complained about Sana Safinaz's
customer service, including response times and order fulfillment, that are too long.
Customers may become dissatisfied due to these difficulties, harming a brand's
reputation and decreasing consumer loyalty.
v. Limited Online Presence: Despite having a presence in the online market, Sana
Safinaz's digital marketing efforts and online visibility may be modest compared to
other rivals. To increase its visibility and sales potential in the expanding online
fashion sector, the company might benefit from spending more on its online

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 platforms, enhancing the user experience, and implementing efficient digital
marketing techniques.

Opportunities:

i. Market Expansion: By examining unexplored demographics and markets, Sana

Safinaz has the chance to grow its clientele. The company can boost sales and market
share by focusing on new geographic areas or consumer groups.
ii. Growth of e-commerce: Sana Safinaz has great potential to improve its online
presence due to the e-commerce boom. The company may expand its reach and
increase online sales by investing in strong e-commerce platforms and digital
marketing.
iii. Collaborations: Sana Safinaz may use partnerships with other designers, celebrities,
or influencers as a tactical move. Such partnerships may help attract new clients,
build excitement, and produce distinctive collections or limited-edition lines that
appeal to a wider spectrum of customers.
iv. Sustainable Fashion: Sana Safinaz has the chance to implement eco-friendly projects
as the need for sustainable practices increases. Environmentally aware shoppers may
be drawn in by including sustainable materials, supporting ethical fashion standards,
and emphasizing the brand's dedication to sustainability.
v. Social media marketing: Sana Safinaz may use social media networks' influence to
raise brand awareness, interact with consumers, and boost sales. The company may
reach a wider audience, fortify its online community, and raise brand recognition by
implementing efficient social media marketing tactics, such as creating interesting
content, working with influencers, and running targeted adverts.

Threats:

i. Competition is fierce: The fashion business is quite cutthroat both locally and
globally. Numerous fashion companies that could provide comparable goods
and designs put Sana Safinaz in competition. This competitive environment
may impact on the brand's market share and profitability.

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 ii. Sana Safinaz is vulnerable to counterfeit items since it is a well-known and
respected brand. Counterfeit products can damage brand value while also
confusing customers and lowering their level of faith in the legitimacy of the
brand.
iii. The purchasing power of consumers may be strongly impacted by economic
factors such as inflation, consumer spending habits, and economic swings.
Sana Safinaz's sales and profitability may suffer if customer disposable
income falls.
iv. Changing Fashion Trends: The fashion business is defined by quickly shifting
customer tastes and trends. To be current, Sana Safinaz must be adaptable and
keep up with these shifting fashion trends. If this isn't done, there could be
less of a market for its products, and market share could be lost.
v. Competitors in Fast Fashion: Sana Safinaz is at risk from the growth of fast
fashion companies that provide fashionable items at low prices. These
companies frequently copy well-known designs at reduced costs, luring
consumers who care about costs. Sana Safinaz must distinguish itself by
emphasizing its distinctive design aesthetics, exceptional quality, and brand
reputation to keep clients and stave off the challenge of quick fashion rivals.
The brand might also stress its dedication to these values to attract clients that
value sustainability and ethical behavior in their purchase decisions.

4.2. IFE Matrix for Internal Assessment

A strategic management tool called an Internal Factor Evaluation (IFE) matrix is used to evaluate
a company's internal strengths and weaknesses. Based on their importance and effectiveness,
each internal element is weight range (0.0 to 1.0) and evaluated on a scale of 1 to 4. The IFE
matrix for Sana Safinaz is as follows:

Weight Rating Weight Comments

Internal Strengths
Strong brand reputation 0.10 4 0.40 Good, need to maintain
Wide product range 0.08 4 0.32 Good, need to continue

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 adding more
Unique design aesthetics 0.09 4 0.36 Good continue with unique
designs
Strong distribution network 0.08 3 0.24 Good but need innovations
International presence 0.07 3 0.21 Grow more global presence
Internal Weaknesses
Pricing 0.07 2 0.14 High prices, need to
reconsider
Limited target market 0.06 2 0.12 Need to grow target market
Overdependence on 0.06 3 0.18 Bring more diversity in
traditional designs designs
Customer service 0.05 2 0.10 Difficult for customer
loyalty need more
improvement
Limited online presence 0.06 2 0.12 Very lesser online presence,
limited stock, less
restocking reduces clients
interest. Need to work on it.
Total: 1.00 2.19
Based on the IFE matrix analysis for Sana Safinaz, which indicates an internal score of 2.19, it is
recommended that the company adopts a "Hold and Maintain" strategy. This strategy involves
capitalizing on internal strengths, such as the strong brand reputation, wide product range, unique
design aesthetics, strong distribution network, and international presence, to maintain and
strengthen their position in the market.

4.3. EFE Matrix for External Assessment

A strategic management tool called an External Factor Evaluation (EFE) matrix is used to
evaluate a company's external opportunities and threats. Based on their importance and
effectiveness, each external element is weight range from (0.0 to 1.0) and Rating on a scale of 5
to 1 (1 poor and 5 outstanding). The EFE matrix for Sana Safinaz is as follows:

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 Weight Rating Weight
External Opportunities
Market expansion opportunities 0.10 4 0.40
E-commerce growth 0.09 3 0.27
Collaborations with designers/influencers/celebs 0.09 3 0.27
Embracing sustainable fashion practices 0.08 3 0.24
Social media marketing 0.07 2 0.14
External Threats
Intense competition 0.10 3 0.30
Counterfeit products 0.08 2 0.16
Economic factors (fluctuations, inflation, etc.) 0.07 2 0.14
Changing fashion trends 0.08 2 0.16
Fast fashion competitors 0.08 2 0.16
Total: 1.00 2.04
Based on the EFE matrix analysis for Sana Safinaz, which indicates an average external score of
2.04, it is recommended that the company adopts a "Hold and Maintain" strategy. This strategy
entails focusing on market expansion opportunities, leveraging collaborations with
designers/influencers/celebrities, and embracing sustainable fashion practices to maintain and
strengthen its current position in the market.

4.4. IE Matrix

IFE Total Weighted Scores

Strong Average Weak

EFE Total Weighted

4.0 3.0-4.0 2.0-2.99 1.0-1.99

Scores

High
I II III
3.0-4.0
Medium IV Sana Safinaz VI
2.0-2.99 IFE 2.19; EFE
2.04

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 Low
VII VIII IX
1.0-1.99

DESCRIPTION
I, II, IV = Grow & Build
III, V, VII = Hold & Maintain
VI, VIII, IX = Harvest or Divest
Based on Sana Safinaz's Internal Factor Evaluation (IFE) score of 2.19 and External Factor
Evaluation (EFE) score of 2.04, the company's strategic position falls within the "Hold and
Maintain" quadrant of the Internal-External (IE) Matrix. This quadrant represents an average IFE
score and an average EFE score. In order to hold and maintain their current position, Sana
Safinaz should consider implementing strategies such as market penetration and product
development.

4.5. Competitive Profile Matrix

The table below represents the competitive profile matrix for the three competitors of Sana
Safinaz, including Khaadi, Gul Ahmed, and Maria B.

Khaadi Gul Ahmed Maria B

Critical Success Factors Weight
Rating Score Rating Score Rating Score
Advertising 0.15 3 0.45 3 0.45 2 0.30
Product Quality 0.20 3 0.60 3 0.60 3 0.60
Price Competitiveness 0.15 3 0.45 4 0.60 2 0.30
Management 0.10 4 0.40 3 0.30 3 0.30
Financial Position 0.10 2 0.20 3 0.30 2 0.20
Customer Loyalty 0.15 3 0.45 2 0.30 3 0.45
Global Expansion 0.10 3 0.30 2 0.20 1 0.10
Market Share 0.05 3 0.15 3 0.15 2 0.10
Total 1.00 3.00 2.90 2.45
1. Khaadi (Total score: 3.00): Khaadi is not far behind Sana Safinaz's overall score. It
performs quite well in management and price competitiveness, indicating a strong
organizational structure and affordability. However, it has slightly lower scores in

20
 financial position and market share, suggesting that there might be areas to improve in
financial performance and market dominance.

2. Gul Ahmed (Total score: 2.90): Gul Ahmed's score shows strong performance in terms
of price competitiveness and product quality. This reflects their strategy of offering
quality products at a more affordable price point. However, they are lagging in customer
loyalty and global expansion. This suggests that Gul Ahmed needs to focus more on
expanding its international presence and improving customer relations to enhance brand
loyalty.

3. Maria B (Total score: 2.45): Maria B scores lower than the other three competitors,
indicating weaker performance in most critical success factors. The brand particularly
lags in global expansion and advertising. This suggests that Maria B should consider
enhancing its marketing strategies and expanding its reach globally.

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 5. Strategy Formulation Analytical Framework

5.1. TOWS Matrix

Based on the above identified SWOT analysis performed, the table below represents the strategy
formulation while using the TOWS matrix.

Opportunities O
 Intense Competition
 Counterfeit Products
 Economic Factors
Strengths S Weaknesses W
 Strong Brand Reputation  High Pricing
 Wide Product Range  Limited Target Market
 Unique Design Aesthetics  Overdependence on Traditional
 Strong Distribution Network Designs
 International Presence  Customer Service Challenges
 Limited Online Presence
SO Strategies WO Strategies
 Use a strong reputation to  Work on reducing the high
expend in new demographics or pricing and increasing the
markets. appeal to lower-income market

 Changing Fashion  Leverage design aesthetics and segments to expand its market.

Trends international presence to  Address customer service

 Fast Fashion collaborate with other issues to better cater to the

Competitors designers, celebrities, or growing e-commerce market.

influencers.  Increase investment in digital
 Utilize the strong distribution marketing and online visibility
network to capitalize on the to leverage the boom in e-
growth of e-commerce. commerce.
Threats T ST Strategies WT Strategies
 Market Expansion  Leverage the strong brand  Consider introducing a more
 E-commerce Growth image and quality products to affordable line to attract price-
 Collaborations distinguish itself from sensitive customers and offset

 Sustainable Fashion competitors in the fast fashion competition from fast-fashion

 Social Media industry. brands.

Marketing  Use international presence to  Improve customer service to

offset the potential impact of enhance brand reputation and
economic fluctuations in a customer loyalty, deterring
specific market. potential harm from counterfeit

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  Address counterfeit products by items.
emphasizing and  Regularly innovate and refresh
communicating the unique traditional designs to keep up
value proposition of the brand, with changing fashion trends
such as its design aesthetics and and remain competitive.
quality.

Overall, the TWOS matrix for Sana Safinaz paints a comprehensive picture of how the
company's internal strengths and weaknesses align with external opportunities and threats. It
provides strategic direction for the brand to leverage its strong reputation, varied product
selection, unique design aesthetics, and extensive distribution network to capture new market
segments and expand its e-commerce capabilities. Simultaneously, it identifies areas of
improvement, such as addressing premium pricing, enhancing customer service, and bolstering
digital marketing efforts to be more accessible to a wider range of consumers and amplify online
visibility. Furthermore, it highlights strategies to mitigate threats like intense competition,
counterfeit products, and fast fashion brands by reinforcing its unique value proposition and
maintaining agility in response to market trends. As such, the TWOS matrix serves as an
essential strategic tool for Sana Safinaz to navigate its future growth and maintain a competitive
edge in the fashion industry.

5.2. SPACE Matrix

The Strategic Position and Action Evaluation Matrix, or SPACE Matrix, is a strategic
management tool that helps companies decide how to move forward with their plans based on
their current position and situation. It has two internal dimensions (financial strength and
competitive advantage) and two exterior dimensions (environmental security and industry
strength). Let's evaluate Sana Safinaz's position based on the provided information. Here's how
to fill in the SPACE Matrix for Sana Safinaz:

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 Financial Strength Competitive Environmental Industry Strength
(FS) Advantage (CA) Stability (ES) (IS)
Strong brand +5
reputation
Wide product +5
range
Unique design +4
aesthetics
Strong +3
distribution
network
International +4
presence
High pricing -2
(weakness)
Limited target -3
market
Overdependence -3
on traditional
designs
Poor customer -4
service
Limited online -3
presence
Market expansion +4
opportunities
E-commerce +3
growth
Collaboration +2
potential
Sustainable +2
fashion practices
Social media +1

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 marketing
Intense -3
competition
Counterfeit -1
products
Economic -2
fluctuations
Changing fashion -2
trends
Fast fashion -2
competitors
Let's calculate the scores for each category:

Internal strategic position External strategic position

Competitive CA Industry IS
+4 market expansion
+4 unique design aesthetics
+3 e-commerce growth
+3 strong distribution network
+2 collaboration potential
-3 limited target market
+2 sustainable fashion practices
-3 overdependence on traditional
Asis X

+1 social media marketing

designs
-3 intense competition
-4 poor customer service
-2 changing fashion trends
-3 limited online presence
-2 fast fashion competitors
Average -1
Average 0.65
Total axis X score = -0.35
Financial FS Environmental ES
+5 strong brand reputation
+5 wide product range -1 counterfeit products
Axis Y

+4 international presence -2 economic fluctuations

-2 high pricing Average -1.5
Average 3
Total axis Y score = +1.5

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Now, we plot the average scores on the SPACE matrix where on y-axis = +1.5 on positive side
and on x-axis is -0.35 on negative side.

FS
Conservative 6 Aggressive
5
4
3
Sana 2
Safina
z (1.5, 1
-0.35)
CA -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 IS
-1
-2
-3
Defensive -4 Competitive
-5
-6
ES
Based on the resulting coordinates (1.5, -0.35), Sana Safinaz's strategic position would fall
within Quadrant II of the SPACE matrix. This quadrant is called "Conservative". Companies in
this quadrant are typically large and mature firms that follow stability and market penetration
strategies. Sana Safinaz should focus on holding and maintaining its current position within the
market while focusing on the products and service market line which is profitable to the
company.

5.3. BCG Matrix

The Boston Consulting Group (BCG) grid is a management tool that shows how a company's
products fit together in an analytical way. It can also be used to look at different business units or
brands within a bigger company. To make a BCG matrix, we need to divide the company's goods
into four groups based on how fast they are growing and how much of the market they have.
Here's what they are:

26
Stars: A lot of the market and a lot of growth.

Question Marks: Low market share and a high growth rate.

Cash cows have a big part of the market and slow growth.

Dogs: Small share of the market and slow growth.

The table below represents the BCG matrix for Sana Safinaz.

High Market Growth Rate Low Market Growth Rate

 Premium range with unique

High Market Share  Traditional wear
designs and wide selection

 New product lines including  Not well-received or

Low Market Share
western wear or accessories underperforming clothes

 Stars: Sana Safinaz's premium range, due to their unique designs and wide selection, is a
star product with both high market share and growth.
 Cash Cows: Their traditional wear, which is known for its quality and reputation, is a
cash cow with a high market share but low growth.
 Question Marks: Newer product lines, such as Western wear or accessories, are question
marks as they could have a low market share but potential for high growth.
 Dogs: If there are any underperforming product categories, such as a specific clothing
line that's not well-received, they would fall into this category.

Sana Safinaz should adopt a balanced approach by allocating resources strategically based on the
different product categories' positions in the BCG matrix. This includes holding and maintaining
stars and cash cows while carefully assessing and selectively investing in question marks. By
managing the product portfolio effectively, Sana Safinaz can optimize profitability, capitalize on
growth opportunities, and ensure a sustainable and successful business.

5.4. Grand Strategy Matrix

The Grand Strategy Matrix is a strategic planning tool that helps organizations develop
appropriate strategies based on their competitive position and market growth. It's a popular tool

27
used for formulating alternative strategies, including growth strategies, stability strategies, and
defensive strategies. The Grand Strategy Matrix is composed of four quadrants:

 Quadrant I: Companies with strong competitive positions in high growth markets fall into
this quadrant.
 Quadrant II: This quadrant is for companies with weak competitive positions in high
growth markets.
 Quadrant III: Companies in slow-growth markets with weak competitive positions fall
into this quadrant.
 Quadrant IV: Companies in this quadrant have strong competitive positions but operate in
mature, slow-growth markets.

The table below represents the grand strategy matrix for Sana Safinaz.

Rapid Market Growth

Quadrant II
Quadrant I
Sana Safinaz “Hold and
Maintain”
Weak Competitive Strong Competitive
Position Position
Quadrant III Quadrant IV

Slow Market Growth

Sana Safinaz falls into Quadrant II (Hold and Maintain) of the Grand Strategy Matrix. This
indicates that Sana Safinaz should focus on strategies that help maintain its current position and
leverage its financial strength and competitive advantage.

Sana Safinaz's present strategy has a strong brand image, a wide product assortment, distinctive
design aesthetics, a trustworthy distribution network, and an international presence. These add to

28
the brand's high-quality clothes and client loyalty. Pricing issues, limited market reach,
overreliance on traditional designs, customer service issues, and a small web presence must be
addressed. Sana Safinaz should alter pricing, enter new markets, update designs, improve
customer service, and engage in digital marketing and e-commerce platforms to become more
competitive. Sana Safinaz can increase its fashion industry position by leveraging market
expansion, e-commerce growth, partnerships, sustainable fashion, and social media marketing.
To succeed, it must consider threats like severe competition and counterfeit items.

Moreover, to improve competitiveness, Sana Safinaz should focus on following:

 Product innovation and distinctiveness should continue at Sana Safinaz. To generate

exclusivity, this can include using distinctive design aspects, experimenting with new
fabrics or materials, and offering limited-edition collections or collaborations. Sana
Safinaz keeps customers interested by updating and adding products.
 Sana Safinaz can expand its customer base while preserving its premium status. Introduce
cheaper product lines or run specials and discounts. Sana Safinaz can attract and retain
customers by balancing exclusivity and accessibility.
 Sana Safinaz should maintain competitiveness by improving customer service and
engagement. Sana Safinaz should improve customer satisfaction by providing fast,
personalized support, quick order fulfillment, and easy returns and exchanges. Customer
feedback helps improve brand-customer connections.
 Sana Safinaz should invest in digital marketing, e-commerce platforms, and easy online
buying to boost its online presence. This includes mobile-optimizing the website, using
social media for targeted advertising and influencer collaborations, and improving the
online consumer journey. An effective internet presence will improve sales and audience.
 Sana Safinaz might partner with celebrities, designers, and fashion influencers to boost
brand visibility. Exclusive or collaborative collections can attract new customers and
build brand buzz. Such partnerships can boost Sana Safinaz's market appeal.
 Long-term success requires customer loyalty. Sana Safinaz can provide loyal consumers
loyalty programs, customized deals, and exclusive benefits. The brand benefits from
recurring business, positive word-of-mouth, and loyal customers through building strong
customer relationships.

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Sana Safinaz is in the Hold and Maintain quadrant, but significant market growth requires an
intense plan to capitalize on prospects. Brands should consider:

 Market penetration: Capture more market share. Competitive pricing, aggressive

marketing, and targeted promotions can attract new and repeat customers.
 Product innovation: Follow fashion trends and client preferences to improve products.
Introduce new designs, styles, and product lines to meet market demands and keep the
brand fresh.
 Customer relationship management: Provide excellent customer service and use
tailored recommendations, exclusive offers, and post-purchase follow-ups to build client
loyalty. Customer relationships boost brand loyalty and repeat business.
 Strategic partnerships: Work with comparable companies, designers, or influencers to
reach new customers. Partnerships can introduce new ideas, expand audiences, and
develop collections that resonate with target shoppers.

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 Conclusion

The research focused on conducting a thorough strategic analysis for Sana Safinaz, a prominent
name in the fashion industry. The analytical frameworks utilized include the TOWS, SPACE,
BCG, Grand Strategy, and IE Matrices. Each of these tools provided insights into the brand's
internal and external environment, offering a comprehensive understanding of its current position
and future potential in the market. The TOWS Matrix identified the brand's key strengths, such
as its strong reputation and international presence, along with weaknesses like high pricing and
limited online presence. It also revealed significant opportunities, including potential for market
expansion and collaborations, as well as threats like intense competition and counterfeit
products.

The SPACE Matrix placed Sana Safinaz in the Conservative quadrant, suggesting that the brand
should focus on maintaining its current market position while concentrating on profitable service
and product lines. The BCG Matrix highlighted the various categories of the brand's product
portfolio: the 'Stars' being the premium range with unique designs, the 'Cash Cows' being the
traditional wear, 'Question Marks' being new product lines, and 'Dogs' being any
underperforming clothes. The Grand Strategy Matrix positioned Sana Safinaz in the 'Hold and
Maintain' quadrant, indicating a strong competitive position but also underscoring the need for a
strategy to leverage its strengths and mitigate its weaknesses to maintain its market position.

In conclusion, the strategic formulation analytical framework provides an actionable blueprint

for Sana Safinaz to navigate its future growth trajectory in the fashion industry. The brand should
focus on leveraging its strengths, addressing its weaknesses, capitalizing on market
opportunities, and mitigating threats to reinforce its competitive position. By implementing these
strategies effectively, Sana Safinaz can ensure continued success and sustainable growth in the
highly competitive fashion industry.

Recommendations

Based on the analysis, the following are recommended strategies for Sana Safinaz:

31
1. Expand the Online Presence: As e-commerce continues to grow, Sana Safinaz should
enhance its online presence. This could involve optimizing the website, enhancing the
online shopping experience, investing in targeted digital marketing campaigns, and using
social media for brand promotion and customer engagement.

2. Diversify the Product Range: Sana Safinaz can explore diversifying its product range,
such as introducing a budget-friendly line to attract price-sensitive consumers or
expanding into more Western wear or accessories to attract new demographics.

3. Address Customer Service Challenges: The brand should invest in improving its
customer service to enhance customer satisfaction and loyalty. This could include
providing quicker responses to customer inquiries, improving order fulfilment and
delivery, and ensuring easy returns and exchanges.

4. Strengthen the Brand Positioning: Given the threats of intense competition and
counterfeit products, Sana Safinaz should reinforce its unique brand positioning.
Emphasizing the unique design aesthetics, high quality, and value proposition can help
differentiate the brand from competitors.

5. Innovate Traditional Designs: To keep up with the fast-changing fashion trends, the
brand should continually innovate and refresh its traditional designs. Introducing limited-
edition collections, collaborating with other designers or influencers, and leveraging
sustainability in fashion can create novelty and exclusivity.

6. Explore Strategic Collaborations: Collaborations with celebrities, influencers, or other

designers can help Sana Safinaz reach new audiences and increase its brand visibility.
These partnerships can lead to exclusive or collaborative collections that can drive
excitement and sales.

7. Enhance Loyalty Programs: To foster customer loyalty and repeat business, Sana
Safinaz can improve its loyalty programs. Offering personalized deals, exclusive benefits,
and early access to new collections or sales can enhance customer retention.

32
33
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