Essay About Giordano’S Competitors And Asian Markets

Giordano
Giordano
1 Executive Summary
Giordano is operating within an industry characterised by high and increasing competition, intense
rivalry between firms, threat of new entry, moderate customer loyalty and increasing power of
suppliers. Giordano’s competitors are all adopting aggressive expansion strategies in Giordano’s
Asian markets and are offering products in direct competition, as well as products at higher
Willingness-To-Pay (WTP) prices. Giordano has historically positioned itself as a producer of value
for money clothing, selling to the middle class of society within Asia. This positioning has been
supported by Giordano’s core competencies in supply chain management, a pleasurable shopping
experience, focus on customer’s basic clothing demands, and a conservative financial position
(Appendix H and I).
Giordano’s recent attempt to move into the higher WTP category with its ‘Giordano Concept’ line
and move into the USA is bold, and will theoretically capture more customer surplus, further
differentiating the Giordano offering. However, there is a possibility that this move could cause
significant negative financial and brand consequences if it fails. Failure of this strategic shift is likely
to occur if Giordano does not quickly move to support the revised strategy. In addition, Giordano
must be prepared