Giordano Swot Analysis Outline
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Giordano SWOT Analysis Outline
Strengths
Strong Brand Equity in HK
Started in HK in 1981 and grew to become one of the largest world-wide retailers- GD, first and foremost, a HK brand
Record sales and growth in HK, one of the most popular brands in HK allowing GD to go global (recognized in 30 countries)
Focus on Innovation and appeal to peoples emotion- “basic, value, essential”
Awards: American Service Excellence Award, ISO 2002, People Devlopment Award, Caring Company Accolade, etc
Diversified Positioning
GD has five brands (Concepts, Ladies, Junior, Blue Star, GD) accessing different segments of the market
This diversification can hedge against underperforming brands and the inherent risk associated with the fashion/retail clothing business- ie: change in consumer preferences/trends as influenced by the macro environment
Different brand lines allow GD to retain customers whos preferences may change (GD Concepts) thus increasing brand loyalty
Geographic Advantage
Main operations located in HK; allows GD to be close, responsive, and dynamic to the HK market
In 2008, GD cut cost by closing 10 stores underperforming stores (overall saw per store sales increase to 9000M HK.
New Line: “Cheer You Up” expresses encouragement and optimism in response to the Financial crises- HKs economy hit hard
New Design Center in Donguan, in between HK and Goungzhou increases efficiency and shortens product lead time
Operationally Efficient, Effective Cost Controls, and Solid Financials
Able to navigate the financial crises
Asset Turnover/Inventory Turnover 23 days
Liquidity and Solvency (current ratio: 2.3), 426M HK on hand
GD capital structure:
Strong IT Inventory tracking system= good communication between suppliers and stores
Good customer service/employees
Stringent selection of employees that under go structured “attitude training”, incentive pay, rotational on the job training, periodic evaluations.
GDs decision makers are from HK and understand the HK market
Top service awards
Meritocracy: Remuneration compensation packages are competitive and align company and employee interest. Incentive pay and stock options.
Product offers superior quality for the right price
Good quality, style, and message. GD tries to bridge an emotional tie with consumers and their brand. Comfortable, stylish, affordable
Strong inventory IT tracking system;