Giordano was founded in Hong Kong in 1980 by Jimmy Lai. Itâ€™s one of Asiaâ€™s most successful retailers currently operating in East Asia, South- East Asia and Middle East. The success of Giordano can be attributed to several factors such as providing excellent customer service, offering customer value for money, and understanding customer needs and wants. These attributes actually comprise the companyâ€™s competitive advantage. In addition to the competitive advantage other key success factors like stringent selection procedures, training of staff, operating efficiencies, extremely good inventory control and turnover, close integration of purchasing and selling functions, and short product development cycles are the reasons behind the growth of the company and enabling the company to gain its hold in the global market also supporting its growth strategy, global expansion. These success mechanisms also helped Giordano survive the Asian economic downturn ...view middle of the document...
Thus, if the company decides to reposition itself, it might end up losing what it has attained as it might create doubt or ambiguity amongst the existing clients. I feel that the company not only focuses in creating new clients, but maintaining focus in retaining the existing clients. Thus, the company must not try to change its positioning as it might end up losing its current market share in the existing markets. However, Giordano can alter its brand image into high value, high-quality, high end markets.
Giordano should not reposition itself in the existing markets; however, they should adopt different positioning strategies for entering new markets. Following are the recommendations that will help Giordano to establish itself in new markets. They should be consistent in their service and the quality of their merchandise. Giordano should conduct Marketing Research to identify latest fashion trends, current style of the country and the cultural differences and similarities that exist in the particular country. Moreover, it is also important to gather information about the economic conditions in the country to be able to judge the purchasing power of potential buyers. Current successful strategies used in existing market, can be used by Giordano as a guideline depending on the market situation and customersâ€™ requirement. Finally, Giordano should continue investigating to find opportunities in new markets like North America and Europe. They should try to find out about their competitors in North America and Europe in order to understand if they can give them competition or will they succumb to the pressures.
I conclude that by Giordano having a strong service model and product in existing market with a strong growth over the years. Staying ahead with this model in the existing market is difficult as it can be easily imitated. Therefore, Giordano needs to continuously bring innovative ideas as to how sales staff respond to customer needs and delight them. Even if its competitors imitate their service model, Giordano always needs to stay a step ahead. It is important to realize that new market needs more understanding before entering them and the company should aim at developing & building the concept of customer as partners.