Question 1: Can Giordano transfer its key success factors to new markets as it expands both in Asia and the

rest of the world? Giordanos key success factors : Design Operations, logistics and IT Branding and marketing Customer service Location

Design: It has fast and market driven product line which changes according to new market. There is fast turnaround from market impulse, design, manufacturing to distribution to shops. Transferability to new country market: It is likely due to the flat structure in Giordano. Other factors are good communication, use of IT and listening to customers and observing the trends in market. Actions required: Increase in knowledge base of customer preferences local and international. Constant upgrading of IT to improve communication in real time and across the global boundaries. Good design staff is needed for each distinct market. Operations, logistics and IT: Giordano has excellent management of systems and integration of activities. For example: stock obsolescence costs are minimized due to daily sales report facilitated through IT and systems, limited stocks in the shop that are daily restocked and rapid market driven manufacturing. Transferability to new country market: It is likely that Giordano can transfer this KSF to new markets but this will invite lot of complexities. The inventory management and logistics distribution will be huge and complex. But this problem can be solved by Giordanos capability in managing IT systems. Actions required: Upgrading and adapting systems to specific markets. Eg: using web based system for real time information management and coordination. High volumes are needed to get economies of scale to justify high initial investment.

Branding and marketing: Positioning helps transfer of key values Giordano offers like value for money, good quality casual wear, excellent service, etc. There is excellent brand recognition due to high advertising and promotional budgets. Transferability to new country market: In Asia it is likely to work if it goes for high promotions as the market is underdeveloped and has huge potential. But beyond Asia, the markets are saturated and there are many competitors who supply at competitive prices. Actions required: Aggressive advertising and brand promotion is required to achieve high volume. This will bring economies of scale in advertising and its other activities.

Customer service: Giordanos commitment to excellent service was reflected in its Customer Service Campaign. Several creative, customer focus campaigns and promotions were launched to extend its service oriented approach. Giordano also had stringent selection procedures to absorb the candidates who exactly matched the profile they were looking for. They conducted attitude training workshops and regarded training as a skeleton of a good service program. They believed that investment in service means investment in people. They offered its employees attractive packages in an industry where employment turnover was very high. Their high wages and emphasis on training resulted in high motivation levels of its sales force. Transferability to new country market: To replicate its high service and quality positioning Giordano modified its formula for success on the basis of differences in culture education and technology of the new countries it entered into. Also labor regulations and HR policies concentrated more on compensation and providing welfare to its employees. Their expatriate policies for staff provided help to Giordano to enable it to function in other countries. Actions required: Giordano should seek to understand the Voice of Customer and should concentrate more on their expectations from the brand. Giordano should adapt its HR programs to the skills and attitude of the staff and customers in new markets.

Location: Giordano should select best of the locations for setting up the outlets. These can be places where there is high customer foot fall and it is convenient location for the customers. Transferability to new country market: Giordano has the necessary resources and the contribution per square foot needed to acquire good retail sites. Actions required: Giordano should continue to seek good locations and take advantage of opportunities to expand in order to achieve high volume and become more accessible to customers