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Project of strategic management MBA (4)

Internal and external strategic analysis of STYLO

By

Fatima Razzaq 0007

Momna Tabassam 2098

Shifa Abdullah 2099

MBA (4th)

Submitted to

PROF. DR. BILAL

At

DEPARTMENT OF BUSINESS ADMINISTRATION

UNIVERSITY OF CENTRAL PUNJAB

FAISALABAD CAMPUS

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Table of Contents
Table of Contents ............................................................................................................................ 2

Introduction ..................................................................................................................................... 3

Mission............................................................................................................................................ 4

Vision .............................................................................................................................................. 4

Business objectives ......................................................................................................................... 4

Products........................................................................................................................................... 5

Services ........................................................................................................................................... 7

Major competitors ........................................................................................................................... 7

SWOT Analysis .............................................................................................................................. 8

External Factor Evaluation matrix .................................................................................................. 9

Internal Factor Evaluation matrix ................................................................................................. 10

Conclusion .................................................................................................................................... 11

Recommendations ......................................................................................................................... 11

References ..................................................................................................................................... 12

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Introduction
STYLO started in 1974 by Mr. Azhar Siddiqui with the amount of Rs.175 at anarkali by setting
up single rented outlet in Lahore. Until 2003, it had only four shops; and then with an aggressive
expansion plan from 2004 onwards, the brand achieved a presence in 52 cities and boasts 87 retail
outlets. And gradually increasing outlets in all over Pakistan and it becomes one of that brands that
define fashion. Originally set up as Bano Chappal, a single store in Lahore’s Anarkali Bazaar, in
1974, STYLO has become one of the most recognized names in Pakistani footwear and has no
intention of slowing down. The brand has over 90 stores in 45 cities in Pakistan. An ISO 9001-
2000 certified company, the brand never has, nor ever will compromise on quality. A large part
of STYLO’s successful journey as a reputable brand has been its ability to stay on top of the trends
in a mercurial market. The brand has become quick at anticipating changes in fashion and catering
to them with unparalleled swiftness.

Also understanding the diversity of its market, the brand promises a vast variety of its product.
From casual flip-flops to professional court shoes to jewel encrusted bridal-wear, this is a brand
that can truly claim that its range is all encompassing. In the spirit of unceasing exploration and its
core goal of staying a few steps ahead of the competition, STYLO has also tapped into two
specialized markets: children’s and semi sporty footwear. The demand for these products has given
birth to two sub-brands: STYLO Kids and Impulse. STYLO Kids offers footwear for children in
designs and styles similar to the adult range and is available at every STYLO store. Impulse
specializes in pumps, also offers sneakers, joggers and sporty sandals. Now STYLO Shoes is one
of the largest women footwear selling network of Pakistan and the major ladies shoes.

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Mission
The mission of STYLO shoes brand is

“To make fashionable footwear that satisfies their customer needs”

Vision
It is an aspirational description of what an organization would like to achieve or accomplish in
the mid-term or long-term future. It is intended to serves as a clear guide for choosing current
and future courses of action.

“The vision of STYLO is touching the international market. We aspire to become a


leading organization not only in Pakistan but also its neighboring nations so that our brands
& utility products become the first choice of our consumers to make them look and feel
smart”

Business objectives
STYLO established itself as a world-class manufacturer of private label and branded footwear with
the aim to provide exceptional shoes at affordable price. It is here that innovation and technology
come together with skilled hands and an old fashioned work ethic. They know their rigidly control
manufacturing process is not a mere advertising slogan, but rather it is the necessary process to
build footwear that withstands the test of time and defines customer satisfaction

The objectives of STYLO are business objectives, which are as follow:

1) To maximize profit.
2) To increase market share.
3) To increase their growth.
4) To become market leader.

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Products
Main purpose of STYLO is to provide stylish, trendy and durable shoes. It includes:

 Ladies shoes
 Ladies Accessories (Hand bags, jewelry)
 Kids footwear
 STYLO PRET

Ladies Shoes

It offers a wide range of shoes from formal, casual, bridal, flat, and party wear. From high heels to
flat slippers its all articles are comfortable, durable and up to dated.

 Formal Shoes: They are the best with finest embellishments and detailed designing.
 Party shoes: Its party shoes include stapler’s heels, ankle high with zips, sandals, coat
shoes and many more.
 Casual shoes: STYLO had not only become first choice of ladies for their formal and party
footwear’s but casual shoes by STYLO have also received great appreciation from
consumers. Casual variety includes flurry softies, flat pumps, strap less shoes, chapels and
many more.
 Bridal shoes: Its Bridal collection includes shoes with fine embellishments and rich stone
work with fancy heels.

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Ladies bags

 They provide an up to date fashion bags, clutches in different styles and colours both for
women and girls.
 They include formal, casual, party and bridal bags, clutches

Jewelry

Its jewelry collections also vary from casual, formal to bridal. Stones used in bridal jewelry are
imported from different places.

Kids Footwear

Along with a vast range of ladies shoes it offers an eye catching range of kid shoes too, according
to taste of teens and kids. STYLO launched exclusive kids brand in 2013 which brings its kids
footwear range from children of all ages, making it the one stop shop for mothers and kids
shopping. Present in all STYLO outlets with its trendy designs and pretty styles, STYLO kids
gives a wide variety to the family and a chance to make fashionable choice together. Now mothers
don’t have to take time out and go to different places for their child, because STYLO has ample
options for both of them.

STYLO PRET

STYLO also has started work in casual fabric but it is in its introductory stage. It is just launched
in 3 cities. Realizing the potential for STYLO to be cemented as a fashion brand, the company
launched a ready-to-wear clothing brand that seamlessly exhibits a fusion of eastern and western
fashions.

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Targeted at young females attending high-end universities and working women entering the
professional realm, STYLO Pret is also place for funky bags and accessories that complete the
stylish ensemble.

Services
They also offer after sales services.

 Defected shoes can be repaired or changed.


 Misplacement of stones from jewellery, shoes or clutches can be repaired/ placed.
 They also offer warranty of shoes and accessories.
 STYLO also make sure that their customers could get the best service possible and for their
convenience, contact information is given on their site.

Major competitors
Their major competitors are

 Borjan
 ECS
 Shoe planet
 BATA
 Metro shoes

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 Uniqueness and differentiation in the product that makes them different and makes
customers to buy the product.
 Optically the shoes are same, but the thing that matters is how they reach to the customer
 How it appeals to the customers
 What is the value of the money that they are giving to the customer

SWOT Analysis
A SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses,
opportunities and threats. Following is the SWOT analysis of Starbucks:

SWOT Analysis

Strengths Weaknesses

 Strong brand name  No international presence


 Versatility and innovation  Less effective pricing strategy
 Strong management  Designs are easily copied by local
 Online trade manufacturers
 Pakistan’s largest fashion
retailer
Opportunities Threats

 Expansion in whole Pakistan  Increasing competitors in the


 Expansion in international market
markets  Changing Consumer tastes and
 Company can also target males lifestyle choices.
 Constantly changing fashion

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External Factor Evaluation matrix
External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for
assessment of current business conditions. It allows strategists to examine political, environmental,
legal, social and competitive environment. The EFE matrix is a good tool to visualize and prioritize
the opportunities and threats that a business is facing.

EFE MATRIX
Sr. Key External Factors Weight Rating Weighted
# Score
Opportunities
1 Expansion in whole Pakistan 0.08 3 0.24
2 Expansion in international markets 0.02 1 0.02
3 Company can also target males 0.04 3 0.12
4 New mediums for advertisement 0.03 2 0.06
5 Innovative products 0.03 3 0.09
6 Growing population 0.08 2 0.16
7 Variety of products 0.04 4 0.16
Threats
8 Strong competition 0.17 4 0.68
9 Constantly changing fashion 0.17 2 0.34
10 Changing in consumer preference 0.15 3 0.45
11 Increasing taxes 0.04 1 0.04
12 Customer dissatisfaction 0.02 1 0.02
13 Substitute products 0.03 2 0.06
14 Store area 0.10 1 0.1
Total 1.00 2.54

According to above EFE Matrix, the average score is 2.54, which seems to be good from the
minimum average score 2.50, but STYLO should more work hard to be the market leader in shoes
industry.

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Internal Factor Evaluation matrix
IFE (Internal factor evaluation) matrix is one of the best strategic tool to perform internal audit of
any firm. IFE is use for internal analysis of different functional areas of business such as finance,
marketing, IT, operations, accounts, Human Resources and others depend upon the nature of
business and its size.

IFE MATRIX
Sr. Key Internal Factors Weight Rating Weighted
# Score
Strengths
1 Strong brand name 0.17 3 0.51
2 Customer loyalty 0.06 2 0.12
3 Conveniently accessible 0.04 2 0.08
4 Targeting all income segments 0.07 4 0.28
5 Product quality 0.04 3 0.12
6 Strong management 0.04 2 0.08
7 Financially strong 0.06 2 0.12
Weaknesses
8 Weak distribution network 0.02 2 0.04
9 Limited market share due to 0.12 2 0.24
competition
10 Due to high rate of taxes, the prices 0.17 3 0.51
of some product are higher
11 No proper planning regarding 0.15 2 0.3
advertisement
12 No variety in fashionable shoes 0.03 1 0.03
13 Lack of motivation from 0.03 2 0.06
employees
Total 1.00 2.49
According to above IFE Matrix, the average score is 2.49, which means
organizations are weak internally, whereas scores significantly above 2.5 indicates a strong

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internal position. The number of factors has no effect upon the range of total weighted scores
because the weights always sum to 1.0. When a key internal factor is both strength and a weakness,
the factor should be included twice in the IFE Matrix, and a weight and rating should be assigned
to each statement.

Conclusion
The two criterias are used for the analysis of internal and external position of STYLO. The major
strategies that are currently being used by organization are evaluated using IFE and EFE models.
Internal Factor Evaluation (IFE) Matrix is a strategy tool used to evaluate STYLO’s internal
environment and to reveal its strengths as well as weaknesses. External Factor Evaluation (EFE)
Matrix is a strategy tool used to examine STYLO’s external environment and to identify the
available opportunities and threats. As the analysis suggests that

 STYLO score 2.54, which indicates that company’s strategies are highly effective in
exploiting opportunities or defending against threats. The company has designed best
strategies and is focused more on how to take advantage of the opportunities.
 The internal evaluation of STYLO results in score i.e 2.49 which indicates that the
company is slightly weak against its competitors. Total weighted score slightly lower than
the 2.5 indicates that the internal situation is not very weak, while the score much higher
than 2.5 depicts that internal situation is strong.

Recommendations
1. STYLO should focus on the strategies that will increase its internal strengths and overcome
its weaknesses.
2. They should also focus on its distribution networks.
3. The strong internal management will be helpful in making the position strong.
4. STYLO should also target male population of the country. Because boys have also become
stylish and fashion oriented. So, STYLO should manufacture shoes for male population as
well.
5. They should also manufacture orthopedic shoes for sugar patients.
6. They should enhance their promotional activities.
7. They should also focus more on public relation.

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References
Topic available at https://STYLO.pk/ assessed on 1-02-2019

Topic available at https://www.facebook.com/STYLOShoes/ assessed on 1-02-2019

Topic available at http://www.maxi-pedia.com/IFE+EFE+matrix+internal+factor+evaluation


assessed on 1-02-2019

Downloaded from

https://www.google.com/search?q=swot&rlz=1C1CHBD_enPK731PK731&source=lnms&tbm=
isch&sa=X&ved=0ahUKEwiQtsDw4NPgAhXCwsQBHXuGDywQ_AUIDigB&/ on 1-02-2019

Downloaded from

https://www.google.com/search?q=STYLO+shoes&rlz=1C1CHBD_enPK731PK731&source=ln
ms&tbm=isch&sa=X&ved=0ahUKEwjNs7yd4dPgAhVQzqYKHdMdBksQ_AUIDigB&biw=13
66&bih=586#imgrc=2IPTjbbFHEugg/ on 1-02-2019

Topic available at https://www.strategicmanagementinsight.com/tools/ife-efe-matrix.html


assessed on 1-02-2019

Topic available at https://www.managementmodels.com/tools/ html assessed on 1-02-2019

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