Swot Analysis:

Swot is an eminent model for an organization to assess what an organization can do and cannot do
,threats and opportunities as well.
Strengths:

ISO 9001-2000 and IKO-TEX 100 certified

Self-owned power generation plant
Biggest composite unit in Pakistan
High quality product
Latest machinery
Tremendous marketing position
Adequate financial resources
Competitive advantage
Advance security system
Highly qualified and skilled management
Using MIS system

Weaknesses:

High cost of production

More time taking to complete projects in foreign market as compare to competitors
More relying on international market
Less promotional activities
Centralized decision making

Opportunities:
Cost reduction by proper utilization of resources
Organization can hire more educated and skillful staff

It can introduce its garments in the local market by using the same stitching unit.
Entering in Energy sector
It can explore the new markets for exports by giving the different incentives to its employees in
the export department, which will improve its profitability.
Threats:
Fashion life cycle.
Stiff competition from developing countries especially China and India.
Pricing pressure.
Instable political and economic conditions.
Government policies.

 Global economic recession

International labor and environmental laws

Interpretation:

STRENGTHS:
ISO 9001-2000 and IKO-TEX 100 certified:
Nishat is certified under ISO 9001-2000, so it meets the requirement of international standard
and has a value in the mind of concerned people.

Self-owned power generation plant:

Now a days, having your own power plant is of crucial importance, because it make sure uninterrupted supply of energy at very low cost, which is helpful to be compatible at international
level

Biggest composite unit in Pakistan:

NML is enjoying the status of being the biggest textile composite unit of Pakistan, these
strengths is helpful to create economies of scale that is key to success in international markets.

High quality product:

Nishat is using advance technology like they have modern machinery by which the quality of
product produced is very high and it is made sure that meets international quality standards

Latest machinery:
They are using modern looms which they have purchased from Japan and France. And by using
that latest machinery the productivity of the employees is very high

Tremendous marketing position:

Nishat is one of the pioneer textiles in the Pakistan so it has got the position in the mind of its
customer. And being an old textile company people are loyal to it. Nishat has a better position in
the mind of its customers

Adequate financial resource:

The owner of the Nishat is one of the richest persons in Pakistan and they have enough to face
the stiff financial situation or when the market is cold and have investments in other industries
like cement, Bank, They have adequate financial resources to meet tough times when there is
market downturn.

Competitive advantage:
It is an old textile business and it has still kept its position in the textile market on all others
competitors nationwide so it has a distinctive edge.

Advance security system:

Nishat has an advanced security system. There are hidden security cameras which capture the all
moments. The entry system of all the workers is much secured. Workers are allowed to enter after their
hand is scanned through a scanning machine

Highly qualified and skilled management:

The management of Nishat is skilled; they have hired the foreign graduate people in their
management and also experienced people from all over the country

Using MIS system:

They have a management information system by which the departments and employees are
connected with each other and they have a data warehouse by which they can share their information
easily

WEAKNESSES
High cost of production:
All Pakistani firms including NML is suffering from high cost of production as compared to the
other countries like, India, China and Bangladesh, they are cutting our throats by being cost
completive day by day while at the same time producing high quality stuff as compared to
Pakistani firms

More time taking to complete projects in foreign market as compare to

competitors:
Foreign countries like India, Bangladesh and China are very much efficient while completing and
consigning their orders to foreign buyers. NML has more transit time as compared to its

international competitors. The reason may be the contracts with shipping companies or some
internal process problems.

More relying on international market:

NML has been focusing on international markets so there are chances that this strategy may
hurt its sales as there are rapid fluctuations in international markets, competition and buyers
preferences.

Less promotional activities:

The advertising and promotional cost of the Nishat textile is very low as it does not take an
effective part in advertisement. It can increase its turnover manifolds by using effective
advertisements tactics these days, as people lives are very much affected by electronic media.

Centralized decision making:

Mostly decisions are made by the upper management which is weakness of the Nishat. They
dont take into considerations of the issues with other employees or worker in detail. They should
decentralize their decision making power to lower level to take the urgent decisions; that will
ultimately be fruitful for the company

OPPORTUNITIES:
Cost reduction by proper utilization of resources:
If the cost of different matters which is not utilizing properly is controlled by the Nishat
management they can produce more in a few costs. It has to develop a further systematic process for
controlling and managing resources. Like they can adopt new labor management strategies

Organization can hire more educated and skillful staff:

Still improvements are required in workforce. They can take advantages by hiring more skilled
people and they should hire young, fresh and energetic staff for their betterment.

It can introduce its garments in the local market by using the same stitching unit:
Nishat can use its plants for local market production after the completing the orders of the other
customers

Entering in Energy sector:

NML may get the privilege of generating and providing electricity for residential and commercial
areas of Faisalabad, by negotiating with the government of Pakistan. Al though local rules make
it difficult but still there is a huge opportunity to capitalize.

It can explore the new markets for exports by giving the different incentives to
its employees in the export department, which will improve its profitability

THREATS
Fashion life cycle:
Fashion changes day by day these days. Media has so much penetrated in our daily lives that we
easily adapt ourselves as it wants us to. This has resulted in shortening the fashion lifecycle thus
increasing the fashion risk.

Stiff competition from developing countries especially China and Bangladesh:

These are the major competitors in international market for NISHAT and they have cheaper labor
resources than NISHAT and have large market share in market

Pricing pressure:
While managing the pricing of a product is a big threat you have to put some margin of profits,
but while in the existence of tough competitors who have cheaper resources than you and
offering attractive prices to the customers

Instable political and economic conditions:

Political instability affects the Nishat because of the quota system the company can be restricted
by the government to export. Lots of challenges are being faced by the company due to unstable
country conditions. They cannot form long term decisions as the environment is uncertain

Government policies:
Government polices like high rates of taxes, VAT, duties on international trades, high energy
cost, re-organizing unions are causing a serious damage to the performance of overall industry
including NML.

Global economic recession:

As globally a cold economic war is started since the population is increased manifolds in last
decade as compared to scarce resources.

International labor and environmental laws:

Nishat has to follow these international laws because many of the organizations are not following these
laws in Pakistan especially law regarding childs labor law, and environmental friendly work system of
the organization.