Giordano: International Expansions

Question 1 How would you describe and evaluate Giordanos product, business and corporate strategies? Answer Giordano has shown excellence all through its business. Simple and focused product line of only 17 core item was its major initiative behind success I believe. New product line was only added when there was a new idea. Simple and speedy organizational structure, outstanding service offerings, value for money positioning, creative promotions, modern inventory are the evidence of its dynamic and trendy business operation. A good corporate strategy is required to make all these things happen. Regional shift to avoid Asian financial crisis, capitalizing franchised Malaysian stores to improve store profitability, separate regional operations are evidence of its smart corporate strategy.

Question 2 How would you describe and evaluateGiordanos current positioning strategy. Should Giordano reposition itself against its competitors in its current and new markets, and should it have different positioning strategies for different geographic markets? Answer Giordanos positioning could be described as value for money, mid priced but trendy fashion. Giordano is playing well in the current market with this positioning. Change in positioning is not required and could be harmful in current market. There is hardly a market where people dont want a shop selling value for money mid priced trendy fashion wear. What I want to say is: Giordano dont need to change its value proposition and positioning in current and new markets unless there is a special condition. Different positioning might be necessary for different geographic market.

Question 3 What are Giordanos key success factors and sources of competitive advantage? Is its competitive advantage sustainable?

Answer Simple and focused product line, excellent service commitment, simple and speedy organizational structure and modern inventory management are its key success factors. They are enjoying a competitive advantage through its excellent service offerings and off course it is sustainable. They just need to keep a strict eye on its service to hold its glory. Question 4 Could Giordano transfer its key success factors to new markets as it expanded in both Asia and other part of the world? Answer Service is the only thing that can differentiate Giordano from its competitors doesnt matter wherever it is operating. So Giordano must transfer its key success factors to new markets no doubt. Question 5 How do you think Giordano had/would have to adopt its marketing and operations strategies and tactics when entering and penetrating your country (Bangladesh)? Answer Mid priced trendy fashion value proposition will be appropriate for Bangladesh market. Giordanos excellent service will help to fight its competitors. People never experienced such wonderful services like unlimited try ons, no question asked here before. They need to be very choosy and smart in case of operation. Operating countrywide with that same value proposition will be difficult. In case of operating countrywide, they need to work on its price and supply chain. In that case, it is better to collect low price merchandise locally and put them on the shelf. In that case also, service is the only thing that can differentiate it from its competitors. Question 6 What general lessons can be learned from Giordano for other major clothing retailers in your country? Answer Simple focused trendy product line; dynamic inventory system powered by IT intelligence and committed service. The cloth retailers of my country can learn these three simple strategy from Giordano.

Shouldice Hospital Case

Shouldice Hospital is a hospital with a specific area of expertise in hernia. And this expertise gives it competitive strength resulting in lower cost, higher quality service for its patients. A better pay for loyalty from its employees as well. Specializing in external abdominal hernias, Shouldice doctors apply the Shouldice Technique developed by founder Dr. Edward Shouldice. This precise technique has resulted in early ambulation (post operation movements and exercises which help patients recover rapidly), and higher success rates (greater than 99%) for patients. Amazingly Shouldice Hospital has been doing this for over 55 years. However, what makes Shouldice so successful is that it is not just a hernia-healing hospital; it is an experience, for the patients and a case of loyalty and happiness for the employees as well. Lets look at each of the aspect why shouldice has been successful.

THE MOTHOD ITSELF: The avoidance of general anesthetics allows involvement of patients. Most hernia surgeries are done with only a sedative (sleeping pill), analgesic (pain relief pill) and local anesthesia. The method helps the patients recover quickly by allowing the patients to walk immediately after the surgery and exercise.

THE PATIENTS EXPERIENCE: Patents do not feel that that are staying in hospital. The patients at the Shouldice center take some of care of themselves. Patients are carefully screened. Patients are active participants in the service delivery process. Patients are taking a vocation. Peace of mind/low risk/Low Recurrence.

Independence/Dignity/Control. Social experience, fraternity. Excused absence from work without guilt. THE NURSES EXPERIENCE:

Shouldice appoints 34 full time equivalent nurses for a 24 hour period. Patient : nurse = 15:1 (average ratio 4:1) During non-operating only 6 full time equivalent nurses were present in the premises. Performed counseling activities.

THE DOCTORS EXPERIENCE: Less workload. Enough spare time for the doctors. Handsome salary (15% more than the average surgeon in that area). Monthly bonus distribution. Proper training and help from senior doctors.

THE FACILITY: Acres of gardens to encourage exercise & rapid recovery. Minimize hospital feeling (carpeting and odorless disinfectant etc). Stairways are designed for patients to use right after operations. No TVs and Telephones in rooms to encourage walking. Operating rooms are located in semicircle to encourage doctors to help each other and use the same anesthetist.

ADMINISTRATION:

Staff is freed from much disagreeable work Reducing the cost of nursing, housekeeping and laundry Nobody is fired. Profit sharing plan. People help each other; everyone can do anothers job in case of emergency. No organization chart.

THE MARKET: It costs at least 3 times less to have a hernia surgery at shouldice than other hospitals. Free annual checkups for alumni. Word of mouth advertising.

HOW THIS IS POSSIBLE? Patients are carefully screened. Patients are active participants in the service delivery process. The avoidance of general anesthetics allows a wide range of involvement of patients. Staff is freed from much disagreeable work. Reducing the cost of nursing, housekeeping and laundry. Structure hospital jobs that involves more counseling and positive interaction with the patients. Highly productive surgeon. Sharing of expensive services such as anesthetist. Short and relatively regular hours for surgeon. High compensation. Opportunities for surgeons to observe and advise one another. Peer group pressure that leads to higher level of self-control of quality. A conscious effort is made to make Shouldice a family experience.

Questions for Shouldice Hospital Limited: What actions should be taken to expand the hospitals capacity? There are 4 alternatives: Add Saturday operations. Add a new floor (45 more hospital beds). Establish a new facility for hernia. Expand to other types of operations.

ANSWER: The best alternative chosen by us is Adding a new floor (45 additional beds). There are disadvantages of this decision. They are, Require to schedule doctors to the full capacity of five days per week. Increase work load on admissions, kitchen, laundry, housekeeping and accounting. Further staggering of meal hours for patients. Disruption during construction. But yet we have chosen this alternative. Reasons are the following: Return on investment becomes 40%. Additional revenue for the clinic. Easy to control and maintain quality. Retain the culture and environment. Work load can be reduced by only recruiting 2 more experienced surgeons, staff and nurses; here the most important fact is the culture. As there will be more work load, the capabilities will be used to the full, to ensure the maximum output while retaining the quality of the service.

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Farhin Bin Anwar Md. TaiaburRahman Rossi Md. Omar Faruqe ShihabUddinRasel Fazley Rabbani Nahid Md. Shafiul Bashar SubrataGhosh

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Sixth Sense

COURSE 513

Service Marketing

Submitted to Mr. Arifur Rahman

Assistant professor Department of Marketing University of Dhaka

Submitted by Sixth Sense 13 Batch ( A section) Department of Marketing University of Dhaka