Case 4 Giordano: Positioning for International Expansion Tocuten Wirtz, ‘To make people “fe good” and “lok grea." —GionDaN0's CoRroRATE MBSION 7 As it looks to the future, a successful Asian relailer of casual apparel must decide whether to maintain its existing positioning strategy. Management wonders wha factors will be critical to success and whether the firm’s competitive strengths in mer- Ladies, Giordano Junior and Blue Star Exchange, was oper. ating over 1,400 retail staces and counters in Some 31 man. kets in the Asia-Pacific and Middle-East region. Its main markets were Mainland China, Hong Kong, Japan, Korea, E eng Singapore and Taiwan, Other countries in hich it had . chad bion andserace are ray rs eo Seer ere asl, ndash Mao 4 ete ee ‘Middle East. In its main markets there were 1478 Giordano { and Giordano Junior stores, 7 Giordano Ladies stores, ana 4 In early 2006, Giordano, a Hong Kong-based retailer of 132 Blue stat Exchange stores, Sales had grows a casual clothes targeted at men, women and children HK84009 million (USGS? millon) by 2004 lee Exhibit) through its four company brands, Giordano, Giordano Giordano stores were located in retail shopping districts EXHIBIT 1 Giordano Financial Highlights i 200i 2009 2002 200120001999 1998 1997 1996 19951994 Tumover 40083389 388834793431 30m 2609 «301435223482 tat ion HS) Tumoverinersse 1816) TADS Sy (percend Profit after tax and 393 266 328 377 416 360 76 68 261 250 1% . minority interests Centon HS) Profitatertaxand 477M (130) «A153. BTS). «tk 8D minority interests Incrense ever previous ye (percent Shareholders’ fund 1954179971695 144911381067 1209788 milion HS) Working capi) «10K. 7B_COCLOM:Ss KOS 25 SSS 5H] rlion 13) 2 Total debt to 0% 04 «03,0333 03k equity ratio Inventorytumover «30st www onsale (days) Return on total 9077883 sets (percent F Retumonaverage 209 «4885 BSB ; sity (percent Return on sales 98 78 «91 8 «AG 7B ‘percent Earning per 2m 1850 Sd 3 BW 6S 540480 184s 19418 share ents) Cashdividend —2300«21.00 «1900 40015251725 -225 250 8087550 per sare (ents) ‘ a i B w0o7Fochen Wire ‘ This cases Based on pushed information and quotes rom a wie array of sources. The gener hep and fedack proved by Alison Law, former Assistant to Chairman, Giordano International Ld, to entice versions ofthis case are gratefully acknowledged ‘The author thanks Zhaohui Chew for his excellent eeeaech asistance. 490EXHIBIT 2 Typical Giordano Storefront Brith good fot traffic, Views ofa typical storefront and i sor interior are shown in Exhibit 2 In most geographic markets serviced by Giordano, the retail clothing Business was deemed tobe extremely competitive The board and top management team wste cager to talntain Giordano's Succes i existing markets nd to enter new markets in Asia and beyond. Several ses were ander discussion. First, in what ways, if at all, should Giordano change its current positioning in the market- place? Second, would the factors that had contributed to Giordano's success inthe past remain equally ctcal over the coming years or were new ey svccess factors Emerg fing? Finally, 98 Giordano sought to enter ne markets ound the world, were its competitive strengths readily Pearferable to other marke? Company BackGROUND Giordano was founded in Hong Kong in 1980 by Jimmy 4 Lai In 1981, it opened its frst retail store in Hong Kong & and also began to expand its market by distributing % Giordano merchanalise in Taiwan through a joint venture 11985, it opened its first retail outlet in Singapore Responding to slow sales, Giondano changed its posi- toning strategy in 1987. Untit 1987, it had sold exclusively | men’s casual apparel. When Lai and his colleagues veale Fed that an increasing number of female customers were Attracted to its stores, he repositioned the chain as a retailer of valuefor-money merchandise, selling dis- counted casual unisex apparel, with the goal of maximiz~ ing unit sales instead of margins. This shift in strategy was successful, eading to a substantial increase in turnover, In 1994, Peter Lau Kwok Kuen succeeded Lai and became Chairman, Management Values and Style A willingness to try new and unconventional ways of doing business and to learn from past errors was part of Lai’s management philosophy and soon became an inte- gral part of Giordano’s culture. Lai saw the occasional failure as a carrent limitation that indirectly pointed management to the right decision in the future, To lemonsteate his commitment fo this philosophy, Lai took the lead by being a rote mcdel for his employees, adding, Like in. a meeting, I say, look, I have made this m take. I'm sorry for that. [ hope everybody leams from this. IF can make mistakes, who... you think you are ‘hat you can’t make mistakes?” He also believed strongly that empowerment would minimize mistakes—that if everyone was allowed to contribute and participate, mis- takes could be minimized, Another factor that contributed to the firm's sue. cess was its dedicated, ever-smiling sales staff of over 8000. Giordano considered front-line workers to be its customer-service heroes. Charles Fung, executive Giordano: Positioning for International Expansion 491director and chief operations officer (Southeast Asia), remarked Even the most sophisticated training program won't guarantee the best customer service. People are the IggjaThey rake exceptional service possible. Training ‘iS merely a skeleton of a customer service program. Its the people who deliver that give it form and meaning Giordano had insituted stringent selection proce- dures to make sure that the candidates selected matched the desired employee profile. Selection continued into its training workshops, which tested the service orientation, and character of a new employee Giordano's philosophy of quality service could be observed not only in Hong Kong but also in its overseas outlets. The company had been honored. service awards over the years (see Exhibit 3). Fung described its obsession with providing excellent customer service inthe following terms: The only way to keep abreast with stiff competition in the retail market is to know the customers’ needs and serve them well, Customers pay our pay checks; they are our bosses... Giordano considers service to be a very important element [in trying to draw customers]... service isin the blood of every mest- ber of our staff Giordano believed and invested heavily in employee training and had been recognized for its commitment to EXHIBIT 3. Selected Awards Giordano Received over the Years ‘AwaKo AWARDING ORGANIZATION CATEGORY Yeanis) ‘American Service ‘American Express Feshion /Apparel 1995 Excellence Award Ear Award Radio Corporation Listeners’ Choice & 1996 of Singapore Creative Merits Excellent Service Singapore Productivity = — 1996, Award and Standards Board 1997, 1998 People Developer Singapore Productivity — 1998 Award and Standards Board HKRMA Customer Hong Kong Retail - 1999 Service Award Management Association ‘The Fourth Hong Kong Hong Kong Trade Export Marketing & 2000 ‘Awards for Services Development Council Customer Service Grand Award (Giordano Hong Kong Trade Export Marketing 2002 International) Development Council Grand Award (Giordano Hong Kong Retail = 2002 Ladies) Management Association Business-to-Consumer Middle East Economie — 2002 Service Supplier Award Digest (MEED) Dubai Services Excellence Dubai Department of Customer Service 2003 ‘Scheme Awan’ Economic Development Customer Service Hong Kong Hong Kong Superbrands — 2004 Superbrands’ "Award Council ‘Top Service Award Next Magazine ChainStores of Fashion 2008 & Accessories 492 Giordano: Positioning for International Expansion training and developing its staff by such awards as the Hong Kong Management Association Certificate of Ment for Excellence in Training and the People Devel ‘Award from Singapore, among others. ‘ore ‘Training is important. However, what is more impae tantis the transfer of learning tothe store. When ther isa transfer of learning, each dollar invested in training yields a high return. We try to encourage this [trans fer of learning] by cultivating a culture and by pro- viding positive reinforcement, rewarding those wig practice what they learned Giordano offered what Fung claimed was “an attrac. tive package in an industry where employee turnover is high.” Giordano motivated its people through a base 4 salary that probably was below market average, but added attractive performance-related bonuses. These initiatives and Giordano’s emphasis on training had resulted in a lower staff turnover rate, Managing its vital human resources (HR) became a challenge to Giordano when it decided to expand into global markets. To replicate its high-service-quality posi tioning, Giordano needed to consider the HR issues involved in setting up retail outlets in unfamiliar territory For example, the recruitment, selection and training of local employees could require modifications to its foremula for success in its current markets, owing to differences in the culture, education and technology of the new coun- tries. Labor regulations could also affect such HR policiesE compensation and welfare benefits. Finally. manage Rent needed to consider expatriate policies for staf mem Fer rho had been seconded to help run Giordano out Fide their home countries, as well as the management snselves in those counties. jordano maintained a flat organizational structure. The ompany’s decentralized management style empowered e managers, and at the same time encouraged fast and jon and coordination. For example, top E lowed easy communication, efficient project manage- ment and speedy decision making, which were al seen as critical ingredients to success amid fast-changing con- er tastes and fashion trends. This kept Giordano's product development cycle short. The firm made similar jemands on its suppliers. fGiordano’s commitment to service begaz with its major Ecustomer Service Campaigt in 1989. In that campaign, low badges bearing the words “Giordano Means Eservice” were worn by every Giordano employee, and its ce philosophy had three tenets: "We welcome tnlim- ted try-ons; we exchange—no questions asked; and we serve with a smile.” Asa result, the firm started receiving, its rumerous service-elated awards over the years. It had also been ranked number one for eight consecutive years by the Far Enstern Economic Review for being innovative in responding to customers’ needs, f Management had launched several creative, customer- Biocused campaigns and promotions to extend its service jorientation, For instance, in Singapore, Giordano asked its stomers what they thought would be the fairest price to charge for a pair of jeans and charged each customer the {price that they were willing fo pay. This one-month cam- Fosign was immensely successful, with some 3,000 pairs of jeans sold every day during the promotion. In another service-related campaign, over 10,000 free T-shirts were Piven to customers for giving feedback and criticizing (Giordano’s services. To ensure customer service excellence, performance evaluations were conducted frequently at the store level, 38 well s for individual employces, Internal competitions FF were designed to motivate employees and store teams to F do their best in serving customers. Every month, Giordano awarded the “Service Star” to individual ‘employees, based on nominations provided by shoppers In addition, every Giordano store was evaluated every month by mystery shoppers. Based on the combined sults of these evaluations, the "Best Service Shop” award owas given to the top store, Customer foedback cards were available at all stores, and were collected and posted at the office for further action. Increasingly, cus- tomers were providing feedback via the firm's corporate Web site, Value for Money Lai explained the rationale for Giordano’s value-for- money policy. Consumers are learning a lot better about what value is. So we always ask ourselves how can we sell it ‘cheaper, make it more convenient for the consumer to buy and deliver faster today than [we did yesterday. ‘That is all value, because convenience is value for the consumer. Time is value for the customer. Giordano was able to sell value-for-money merchan- dise consistently through careful selection of suppliers, strict cost control and by resisting the temptation to increase retail prices unnecessarily. For instance, to provide ‘greater shopping convenience to customers, Giordano started to open kiosks in subway and train stations in 2003 aimed at providing their customers with a “grab and go” Inventory Control In order to maximize use of store space for sales opportu nities, a central distribution center replaced the function of a back storeroom in its outlets. Information technology (IT) was used to facilitate inventory management and demand forecasting, When an item was sold, the barcode information—identifying size, color, style and price—was recorded by the point-of-sale cash register and transmit- ted to the company’s main computer. At the end of each day, the information was compiled at the store fevel and sent to the sales department and the distribution center ‘The compiled sales information became the store's order {or the following day. Orders were filled during the night and were ready for delivery by early morning, ensuring that before a Giordano store opened for business, new inventory was already on the shelves, Another advantage of its IT system was that iafor- ‘mation was disseminated to production facilities in real time. Such information allowed customers’ purchase pat- terns to be understood, and this provided valuable input to its manufacturing operations, resulting in less prob- lems and costs related to slow-moving inventory. The use of IT also afforded more efficient inventory holding. Giordano’s inventory turnover on sales was reduced from 58 days in 1996 to merely 30 days in 2004. Its excel» lent inventory management reduced costs and allowed reasonable margins, while til allowing Giordano to rein- force its value-for-money philosophy. All in all, despite the relatively lower margins as compared to its peers, Giordano was still able to post healthy profits. Such effi- cieney became a crucial factor when periodic price wars ‘were encountered, Giordano: Positioning for International Expansion 493PRobuct POSITIONING Fung recognized the importance of limiting the firm’s ‘expansion and focusing on one specific area. Simplicity ‘and focus were reflected in the way Giordano merchan- dised its goods. Its stores featured no more than 100 vari- ants of 17 core ites, whereas competing retailers might feature 200 to 300 items. He believed that merchandising a ‘wide range of products made it difficult to react quickly to ‘market changes. Giordano’s willingness to experiment with new ideas and its perseverance despite past failures could also be seen in its introduction of new product lines. It ventured into mid-priced women’s fashion with the label “Gio Ladies"—featuring a line of smart blouses, dress pants and skirts—targeted at executive women. Reflecting retailer practices for such clothing, Giordano enjoyed higher margins on upscale women’s clothing—typically 50 to 60 percent of selling price as compared to 40 percent for casual wear. Here, however, Giordano ran into some difficulties as, it found itself competing with more than a dozen sea- soned players in the retail clothing business, including ‘Theme and Esprit, Initially, the firm failed to diferentiate its new Giordano Ladies line from its mainstream product line, and even sold both through the same outlets. In 1999, however, Giordano took advantage of the financial trou- bles facing rivals such as Theme, as well as the boom that followed the Asian currency crisis in many parts of Asia, EXHIBIT 4 A Typical Store Layout 494 Giordano: Positioning for International Expansion to aggressively relaunch its “Giordano Ladies? wh scaequenly wet with geatoceees al 2006, the reinforced “Giordano Ladies” focused on ae segment with 27 "Giordano Ladies” shops in Hong Taiwan, Singapore and Cina, offering personaliteg vice. Atnong ote things, the taf were tained to Fize names of regula Customers and recall tht aif purchases. a ferentiation and Repo: iol During the late 1990s, Giordano had begun to repost its brand, by emphasizing differentiated, functional value-added products clothes and broadening its app by improving on visual merchandising and apparel. tioning worked well—inexpensive, yet contempora looking outfits appealed to Asia’s frugal customei especially during a period of economic slowdowi However, over time, this positioning became inconeifl tent with the brand image that Giordano had tried ha to build over the years. As one senior executi remarked, “The feeling went from ‘this is nice and good value’ to this is cheap” Giordano gradually remarketed its core brand ways that sort to create the image of a trendier label, Té continue meeting the needs of customers who favored i value-for-money positioning, Giordano launched severalFmotions. Among its successes was the "Simply Khakis” Psotion, launched in April 1999, which emphasized street-culture style that “mixed and matched,” and fitted all occasions. Within days of its launch in spore, the new line sold out and had to be re-launched weeks later. By October 1999, over a million pairs of ‘trousers and shorts had been sold. The firm’s skills bs helped the retailer to reduce the impact of the Asian Mis onits sales and to take advantage ofthe slight recov- totyping in Hong Kong and Taiwan. In 2002, the first ‘Star Exchange store was set up in Southern China. x Exchange to 132 by 2005, The Group was also evalu the possibility of launching the Blue Star chain in its ‘in June 2003, right after the SARS (severe acute respi jory syndrome) health crisis, which discouraged shop- king and consumer spending, Giordano launched the foga Collection” which used a moisture-managed fabric, Tech™. Tt was an instant big hit, allowing Giordano recover nicely from the SARS crisis in Hong Kong and Bizbling its new brand to stand out from competing lyin Hong Kong—founder Jimmy Lai believed that dano had to develop a distinctive competitive advan- ge. So he benchmarked Giordano agninst best-practice nizations in four key areas: (1) computerization (rom Limited), (2) tightly controlled mem (from ing (as implemented at the British retail chain Marks Spencer). The emphasis on service and the value-for- Giordano’s main competitors in the value-for money segment had been Hang Ten, Bossini, and Baleno, and at the higher end, Esprit, Exhibit 3 shows the relative posi tioning of Giordano and its competitors: The Gap, Bossini, Hang Ten, Baleno, and Esprit. Hang Ten and Bossini were generally positioned as low-price retailers offering reasonable quality and service, ‘The clothes emphasized versatility and simplicity. But while Hang Ten and Baleno were more popular among teenagers and young adults, Bossint had a more general appeal. Their distribution strategies were somewhat simi- lar, but they focused on different markets. For instance, while Hang Ten was mainly strong in Taiwan, Baleno increasingly penetrated Mainland China and Taiwan, On the other hand, Bossini was very strong in Hong Kong and relatively strong in China. The company planned to ‘make its business in China into the group's largest turnover and profit contributor. The geographic areas in which Giordano, The Gap, Espirit, Bossini, Baleno, and Hang Ten operate are shown in Exhibit 6 Esprit was an international fashion lifestyle brand. Esprit promoted a “lifestyle” image and its products were strategically positioned as good quality and value for money—a position that Giordano was o¢cupying. By 2005, Esprit had a distribution network of over 10,000 stores and outlets in 40 countries in Europe, Asia, ‘America, Middle East and Australia. The main markets were in Europe, which accounted for approximately 65 percent sales. The Esprit brand products were principally sold via directly managed retail outlets, wholesale cus- tomers {including department stores, specialty stores and franchisees), and by licensees for products manulactured under license, principally through the licensees’ own di tribution networks, ‘Theme International Holdings Limited was founded in Hong Kong in 1986 by Chairman and CEO Kenneth Lai He identified a niche in the local market, for high-quality, {ashjorable ladies businesswear, although the firm subse- quently expanded into casual wear. The Theme label ra chain were in direct competition with “Giordano Ladies.” From the first store in 1986 to a chain comprising over 130 (www.hangtencom) Sporty lifes EXHIBIT 6 Market Positioning of Giordano and Principal Competitors 5 Finws Posttionin “Tancer MARKET i Giordano Value for money Unisex casual wear fr all ages (wwwrgiordano.comhk) — Mis-priced but trendy fashion (onder different brands) ‘The Gap Value for money Unisex casual wear fr all ages (www.gap.com) Mid: priced but trendy fashion Gonder different brands) Esprit More ip-market than Giordano Ladle’ casual, butalso other ‘ewespritint.com) Stylish, trendy specialized lines for children and men Bossini Value tor money Unisex, casual wear, both young (wwrbessini.com) (comparable to Giordano) And old tabove'¥s) Balen Value for money Unisex appeal, young adits (wwwcbaleno.conhk) ‘Trendy, young age castial wear Hang Ten Value for money Casual wene and sports weat, teens and young adults ‘Giordavo: Positioning for International ExpansionEXHIBIT 6 Geographic Presence of Giordano and Its Principal Competitors Tae Gar Counrry GroRDANO Asia Hong Kong/Macau Singapore South Korea Taiwan China Malaysia Indonesia Philippines Thailand World US. and Canada - Europe = Japan x ‘Australia x 8 Total HH OE 37 Noe *X" indents presence in the country/region: “indicates no preencs Swurs: Annus Rep 200, Glordane internation Gap ne. ttieved ne 23,2008, fom tp /wwvegapinc com! shout reafestat/streconnt hime Ansa Report 2001/5, Esprit: inact Rep 20068, Bossn ntrnational Holdings Limited: Bolo, Retrieved December 12, 205 roe p/w leno com /EN stores hist sptarenmen: Hang, Ten ettieved December 12,205, from Mp: /swsahangten com. ‘outlets in Hong Kong, Mainland China, Macau, Taiwan, ‘Singapore, Malaysia, Indonesia, the Philippines, the phe- nomenal growth of Theme was built on a vertically inte- grated corporate structure and advanced management sys- tem. However, its ambitious expansion proved to be costly. In 1999, the company announced a HIK$106.1 million net loss for the six months up to September 30, 1998, and was subsequently acquired by High Fashion International, 1a Hong Kong-based fashion retailer specializing in up- ‘market, trendy apparel. Theme was then focusing on expan- sion in China, after having fortified its image as a sophisti- cated and high-end smart-causal fashion for career women, Although each of these firms had slightly different positioning strategies, they competed in a number of, EXHIBIT 7 Competitive Financial Data for Giordano, The Gap, Esprit, Bossini and Theme Esrrrr _Bossint__BateNo HANG Tey HH HOE | OE | 30K 1 | | ore fee | <3 1x1 x x x l1l% ree xxx 9751 g 1360 Ni & areas. For example, all firms heavily emphasized ad ing and sales promotion—seling fashionable clothes attractive prices. Almost all stores were also located pif marily in good ground-floor areas, drawing high-volume traffic and facilitating shopping, browsing and impulse buying. However, none had been able to match the great customer value offered by Giordano. ‘A thyeat from US-based The Gap was also looming. ‘The Gap had already entered Japan, After 2005, when gal ment quotas were largely abolished, imports into the region had become more cost effective for this US. con petitor Financial data for Giordano, Esprit, The Gap, Bossini, and Theme are shown it Exh Gronpano__TweGar _Esemit__Bossii_Tueme Turnover (USS million) 517 16267 2,662 260 6 Profit after tax and minority 51 1150 91 23 o interests (US$ million) Return on total assets (percent) 49 na 32 3) Return on average equity (percent) 209 Es 536362, NA Return on sales (percent) 98 74 206 135 2) Number of employees 9,000 152000 7720 -3,963 2,500 Sales per employee (USS 000) 5744 wo702 34482561 104 Note:The Gap reports scaring in USE. Al reported lgres have bau conver into US$ at the following exchange (asof fast 2009; USI = HKS?75 Sars: Anal Report 204, Gordan Inteations; nl ior 200, The Cap; Fnac Higgs 2015, Eapet International: iumcl Report 20045, Boss ltenationa Hing Lime Annual Repor 200, Theme Holdings: Retr, Reeve Deceinber 12,208 Fat wwe kohler im, 496 Giordano: Positioning for International Expansionunderstanding of consumer tastes and preferences for fabrics, colors and advertising. In the past, the firm had relied on maintaining a consistent strategy across different countries, including such elements as positioning, service Jevels, information systems, logistics, and human resource policies. However, implementation of such tactical ele- ‘ments as promotional campaigns was usually left mostly to local managers. A country’s overall performance in terms of sales, contribution, service levels and customer feedback was monitored by regional headquarters (for instance, Singapore for Southeast Asia) and the head office in Hong Kong. Weekly performance reports were distrib- uted to all managers As the organization expanded beyond Asia, it was becoming clear that different strategies had to be devel- oped for different regions or countries. For instance, to enhance profitability in Mainland China, the company recognized that better sourcing was needed to enhance price competitiveness. Turning around the Taiwan opera- tion required refocusing on basic designs, streamlining product portfolio, and implementing their micromarket- ing strategy more aggressively. The company was contin- uuing to explore the market in Japan and planned to opena few more stores in the second half of 2006, In Europe, it ‘was investigating a variety of distribution channels, including a wholesale-based business model 1 regional expansion was required to achieve sub- jrowth and economies of scale. By 2006, Giordano Lier 1,600 stores in 31 markets. Exhibit 8 shows the Driven in part by its desire for growth and in part by 4 to reduce its dependence on Asia in the wake of Giordano to rethink its regional strategy it was Fhictermined to enter and further penetrate new Asian 3. This determination led to successful expansion Hpiainland China (see Exhibit 8), here the number of BI outlets grew from 253 in 1999 to 644 by 2006. tunities arising from the People’s Republic of a's accession to the World Trade Organization. fGiordano opened more stores in Indonesia, bringing ral amosignta consist ndeshiprton Decisions Facing the Senior Malaysian market, To improve store profitability, dano had already converted some of its franchised Management Team ysian stores into company-owned stores. Although Giordano had been extremely successful, it b The senior management team knew that Giordano’s faced a number of challenges. A key issue was how the ure successin such markets would depend ona detailed Giordano brand should be positioned against the com- EXHIBIT 8 Operational Highlights for Giordano’s Retail and Distribution Division 2004 20032002 2001-2000 1999 199819971996 19951994, PNurber of retail outlets “Managed directly BIL 580473456367 3175083283 by the group Franchised 7% 81) 7835S Damo otal numberof 158513631256 1159 92074) SIS ST 360 eal outlets Rela floor area BS) nanaged directly bythe group {ax0005q. > Sales per square 4300 4200 4500 5.100 7.400 84006600 8,000 9,900 10.500 10,600 foot KS). ‘Number of 900 790080008287 Ties 62 ea _BITE TOON TOM ones employees Comparable 7 © @ © 4 7 9 a @& 8 © store sales Increase/(decrease) (percent) | Number of NA 3200 2900 2608 2417 2026 14681 1929 1958 20691928 sales associates BS 262 Gp Sr A ct 2 nt i Giordano: Positioning for International Expansion 497EXHIBIT 9 Tee . 5 eoheity petition in both new and existing markets. Was a reposi- tioning required in existing markets and would it be necessary to follow different positioning strategies for different markets (e.g., Hong Kong versus Southeast Asia)? ‘A second issue was the sustainability of Giordano's key success factors. Giordano had to carefully explore how its core competencies and the pillars of its success STuDy QuESTIONS 1. Describe and evaluate Giordono's product, busiuess and corporate strategies: 2. Describe aud evaluate Giordeno’s current positioning ordeno reposition itself against its eo petitors in Mseurrent and new markets, and should i ha different positioning strategies for diferent geographic markets? 3. What are Giondan’s petitive ademntage? Are its competitive advantages sist able, and How cole they levetop in the future? ay success factors and soces of com 498 Giordano: Positioning for International Expansion Giordano’s Flagship Store in Shanghai ‘were likely to develop over the coming years, Which of it competitive advantages were likely to be sustainable and ‘which ones were likely to be eroded? A third issue was Giordano’s growth strategy in Asia as well as across continents. Would Giordano’s competi tive strengths be readily transferable to other market? Would strategic adaptations to its strategy and marketing mix be required, or would tactical moves sutfice? 1 4. Could Giordano transfer its key success factors to new mar kets as i expands beth in Asia and in other parts oft world? How do y markets entering aud penetrating your country? 6. What general lessons cans major clothing retailers in yo county learn from Giordano? on think Ginrdano haclfeould have to adap and operations strategies and tactics whew so Aapnsnerget