Giordano Holdings Marketing Case
GIORDANO HOLDINGS LIMITED
Situation
Giordano Holdings Limited is a clothing retail company based in Hong Kong. Started by Jimmy Lai in 1980, He made a company that believes in offering quality casual clothes at affordable prices. Since the opening of its 1st store, Giordano has experienced notable success in its different regions. Gives employees better benefits that competitors, gives them excellent and continuous training which leads to excellent customer service/customer satisfaction.
Comparing to other industry figureheads Lai is classified under what you call as a unconventional leader. Likes to take risk and not afraid of failure. Lai states, “As a retailer, the product is half of what we sell. The other half is service.”
With their vision that high sales will result to high profit they engaged in competitive prices against top competitors
Problem Identification
How would they approach the market in China. Here are the following challenges the company has encountered.
Franchising Laws in the county
Cultural diversities
Very competitive market
Frequent blackouts
Inconsistent delivery schedules
High operating cost
Issue with the Chinese government
Pricing
Analysis of the Problem
Giordano tried implementing the same methods and strategies (which has proven to be successful) to a different country without considering cultural diversities/ economic, legal and political issues thus resulting to a failure in their leaders part. He was over confident in running the company “his way” and dubbed financial projections, budgeting and MBA’s as bullshit. He also did not invest in market research.
Alternatives
Option 1: Negotiate Franchising .Start all over again. Evaluate what has happened then redo everything from Planning to Implementation. Utilize a new market penetration strategy for China. Invest in market research and feasibility study which will help understand the behavior or the
Situation
Giordano Holdings Limited is a clothing retail company based in Hong Kong. Started by Jimmy Lai in 1980, He made a company that believes in offering quality casual clothes at affordable prices. Since the opening of its 1st store, Giordano has experienced notable success in its different regions. Gives employees better benefits that competitors, gives them excellent and continuous training which leads to excellent customer service/customer satisfaction.
Comparing to other industry figureheads Lai is classified under what you call as a unconventional leader. Likes to take risk and not afraid of failure. Lai states, “As a retailer, the product is half of what we sell. The other half is service.”
With their vision that high sales will result to high profit they engaged in competitive prices against top competitors
Problem Identification
How would they approach the market in China. Here are the following challenges the company has encountered.
Franchising Laws in the county
Cultural diversities
Very competitive market
Frequent blackouts
Inconsistent delivery schedules
High operating cost
Issue with the Chinese government
Pricing
Analysis of the Problem
Giordano tried implementing the same methods and strategies (which has proven to be successful) to a different country without considering cultural diversities/ economic, legal and political issues thus resulting to a failure in their leaders part. He was over confident in running the company “his way” and dubbed financial projections, budgeting and MBA’s as bullshit. He also did not invest in market research.
Alternatives
Option 1: Negotiate Franchising .Start all over again. Evaluate what has happened then redo everything from Planning to Implementation. Utilize a new market penetration strategy for China. Invest in market research and feasibility study which will help understand the behavior or the