Giordano Swot Analysis Outline

Giordano SWOT Analysis Outline

Strengths

1. 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 people's emotion- "basic, value, essential"

* Awards: American Service Excellence Award, ISO 2002, People Devlopment Award, Caring Company Accolade, etc

2. 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 who's preferences may change (GD  Concepts) thus increasing brand loyalty

3. 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- HK's economy hit hard

* New Design Center in Donguan, in between HK and Goungzhou increases efficiency and shortens product lead time

4. 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

5. Good customer service/employees

* Stringent selection of employees that under go structured "attitude training", incentive pay, rotational on the job training, periodic evaluations.

* GD's 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.

6. 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;