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Case Study 22

Giordano's key success factors include excellent inventory management that reduced costs while maintaining value, and a large advertising budget. They achieved competitive advantages through their strong brand reputation and emphasis on training employees. To sustain their advantages, Giordano should focus on maintaining their culture during expansion, improving customer service, and expanding into new markets like Europe. When entering new countries, Giordano would need to adapt their strategies to each market while maintaining consistency in quality, consider cultural differences, and differentiate their brand. Lessons for other retailers are to focus on service, employees, and thinking globally.

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160 views3 pages

Case Study 22

Giordano's key success factors include excellent inventory management that reduced costs while maintaining value, and a large advertising budget. They achieved competitive advantages through their strong brand reputation and emphasis on training employees. To sustain their advantages, Giordano should focus on maintaining their culture during expansion, improving customer service, and expanding into new markets like Europe. When entering new countries, Giordano would need to adapt their strategies to each market while maintaining consistency in quality, consider cultural differences, and differentiate their brand. Lessons for other retailers are to focus on service, employees, and thinking globally.

Uploaded by

LinhThùy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Name : Trịnh Thị Thuỳ Linh

ID:1721001452
Class IP17DMA

Topic : CASE 22: Giordano: Positioning for International Expansion

3. What are Giordano’s key success factors and sources of competitive advantage? Are its
competitive advantages sustainable, and how would they develop in the future?

3.1 Key success factors:

 System for recording inventory : Giordano’s inventory turnover on sales was


reduced from 58 days in 1996, to merely 28 days in 2008. Its excellent inventory
management reduced costs and allowed reasonable margins, while still allowing
Giordano to reinforce its value-for-money philosophy. All in all, despite the
relatively lower margins than those of its peers, Giordano was still able to post
healthy profits.
 Advertising Budget:
- in marketing positioning:
+ Right positioning: Additionally, having achieved success in its value- for-money
lines, Giordano now wanted to penetrate the “upper premium” segment

+ Huge advertising budget

- in service

+ Service orientation is pervasive in many of its activities: Every month, Giordano


awarded the “Service Star” to individual employees, based on nominations provided
by shoppers. In addition, each Giordano store was evaluated every month by mystery
shoppers. Based on the combined results of these evaluations, the “Best Service
Shop” award was given to the top store. Customer feedback cards were available at
all stores, and were collected and posted at the office for further action. Increasingly,
customers were providing feedback via the firm’s corporate website.

+ Recruitment, selection & training of staff: Giordano believed and invested heavily
in employee training, and has been recognized for its commitment to training and
developing its staff by awards such as the Hong Kong Management Association
Certificate of Merit for Excellence in Training and the People Developer Award from
Singapore, among others.

+ Empowerment & motivation of staff.

3.2 Competitive Advantage:


The brands reputation.
Employees trained and hired by professional interviewers.
Advantaged are sustainable because they are a leading corporation in the market.
3.3 In the future they should focus on:
 With management of operation:
- Build customerBuild customer loyalty
- Strong competitors with similar positioning
- Demand for casual clothes as increasing incomes.
With marketing positioning:
- Ensure that this culture can be maintained as it expands rapidly in existing and new
market

 making good investments


 continue to improve customer service, budgeting finances, managing employees
 They should also focus on expanding in countries they don't currently have
branches. Europe, for example.

4. Could Giordano transfer its key success factors to new markets as it expanded both in Asia
and the other parts of the world?

to operate in other countries, they will need powerful software to create technology systems
for such expansions because not every country follows the same codes and principles as
Asian countries. They are going to have to differentiate their brand from their competitors and
have more of an understanding of new customer tastes and preferences.

They can use their key success factors to do the established distribution, marketing and
inbound channels members in order to market their product outside the home country.

5. How do you think Giordano adapted/would have adapted its marketing and operations
strategies and tactics when entering and penetrating your country?

Giordano would have to use the same marketing and operations strategies in my country as he
did in other countries. The level of marketing and operations strategies depends on the
country and its consumers purchasing behavior. Giordano's strategies includes:

 Consistency in service and merchandise quality

 Two dimensions of marketing and operations need to be addressed separately


Concentrate on the similarities between countries; Careful to consider national
and cultural differences in some aspects of its marketing mix.

 • Fast distribution centers

 • Adequate inventory records Value for money

 • Service differentiation

6. What general lessons can be learned from Giordano for other major clothing retailers in
your country?
- Thinking carefully about Giordano managed to deliver a high level of service “Even
the most sophisticated training program won’t guarantee the best customer service” ,
the value of money, the difference between product and inventory

- Key success factors alway are good service and brilliant employees because they are
essential aspects that affects company's day to day operations

- Never focusing on one market, think big and focus on global aspects for the
company.

____________________________________End______________________________

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