Nishat Textil Mills Ltd.

SWOT Matrix

STRENGTHS WEAKNESS
lowest employee turnover Less advertising focus
Highly experienced professionals Imported machinery
Decentralized organizational
structure High production cost
Efficient information system
Good financial position/strong group
Location of plants
Highest capacity of production

OPPORTUNITIES SO strategies WO strategies

Designer wear garments for Concentrate on electronic
to increase Target market gents(S5,O1,O3) advertising domestically(W1,O1)
Quality and Guaranteed Fabrics Open retail outlets in gulf (S5,O1)
to expand product line
International Fair Trade Certificate
Increase demand of Pakistani Cotton
internationally

THREATS ST strategies WT strategies

Open retail outlets in suburbs
Political Instability areas(S5,T4) Advertising internationally (w1,T2)
Low Market Share in Overseas Increase machine handling training
Market More domestic production(S7,T3) for employees(W2,T1)
Focus more on export oriented
Limited Retailing Outlets
Shortage of electricity supply
 Strengths & opportunity strategies:
Designer wear garments for gents:
We have made this strategy because the company is making ladies outfits right now.
They are not in gents garments profession. Company can invest for expanding its product
line because it has strong financial back ground.

Open retain outlets in gulf countries:

The company can increase its target market by increasing its number of retail stores in
gulf countries because a lot of Pakistanis live in those countries so it would be beneficent
for the company to increase its target market.
 Opportunities & Weaknesses strategies (WO strategies)

concentrate on electronic advertising domestically:

We have proposed this strategy because Nishat has a threat of strong advertising by
its competitors Gul Ahmad & Chenab textiles but Nishat is not in electronic media. By
concentrating on electronic advertising the can compete by increasing their target market.
The main reason for electronic advertising is customers have televisions & internets in
their homes, they can easily know about its products.
 Strengths & threats strategies (ST strategies):
Open retail outlets in suburb areas:
Nishat has limited retailing outlets where every customer cannot go. It has an opportunity of
strong group i.e Mansha group & good financial history. This company can invest in opening
retailing outlets in suburbs areas & can earn more profits by reaching more customers.

More domestic production:

As Nishat is an export oriented organization its 90% products are exported. But there are
other international brands also in other countries which are competitors of Nishat that is why the
company should increase its domestic production. Nishat can easily do this because it has
173000 looms; the highest textile capacity of any textile mill in Pakistan.
 Weaknesses & threats strategies (WT strategies):

Advertising internationally:
Nishat as an export oriented organization should increase its advertising in foreign markets.
By increasing its advertising focus can get high market share in overseas markets.

Increase machine handling training for employees:

If proper training is given to employees about handling of imported machinery then there will
be no impact of political instability on the company because all spare parts will be imported.
 Internal Factor Evaluation Matrix

KEY FACTORS Weight Rating weighted score

STRENGTHS

lowest employee turnover 0.15 4 0.6

Highly experienced professionals 0.08 3 0.24

Decentralized organizational structure 0.1 3 0.3

Efficient information system 0.05 3 0.15

Good financial position/strong group 0.08 4 0.32

Location of plants 0.06 4 0.24

Highest capacity of production 0.2 4 0.8

WEAKNESS

Less advertising focus 0.1 2 0.2

Maintenance of Imported machinery 0.1 1 0.1

High production cost 0.08 1 0.08

1 3.03