Moderna Textile

Rana Hilal
Ghada Samy
Amr Elghor
Mahmoud Assem
Malak Labib
Mostafa Elgohary
Abdallah Abed
Nada Hamdy
Shady Ashraf

Table of content
1.
2.

Overview about Textile industry & Modenra

Problem Definition

3.

External analysis

4.

Internal analysis

5.

Alternatives Evaluation and

recommendation

Worldwide Textile

Industrial textile origins

Textile market

Textile In Egypt

Egyptian cultures were among the first

to establish textile production
Importance of textile industry in Egypt
Egyptian cotton

Moderna Textile

Moderna was founded by elKabbani

Family
Moderna has one central factory and
four branches
Modernas goal

Problem Definition

December 2009.
Action of the Marketing Director.
Marwans native country.
Surprising dinner with the Jordanian
ambassadors wife.
How did this dinner effected Marwans
plan.

Internal analysis

Value chain; Core competence;

internal culture; IFAS

Value chain

Loose Fibers/
Stock
Basic Types :
1) Natural
Fibers
2) Synthetic
Fibers

Yan
manufacturing

fabric
production

Distribution

Own
branches

Steps:
1) Dying
2) Spinning
3) Warping
4) Threadingin
5) Weaving
6) Quality

Main
products:
- Upholster
y
- Curtains
- Textile
fabrics

-B2B:
Luxury
hotels
- B2C: Its
branches

4 Branches
- Talaat
Harb
- Mohandes
sin
- Maadi
- Shobra

Core competence

Moderna controls the whole process:

Raw material: Best quality Egyptian Cotton

Production process: Fully automated & advanced

machines and experienced labor.

Distribution: Directly to its customer without

intermediaries.

This forms Moderna core product : High quality

textile

Distinctive competency from competitors.

Culture

Modernas employees are highly

experienced, well trained and selfmotivated.

The staff of is almost 150 employees

which has many benefits

Internal
Factors

Weights

Rating

Weighted
Score

Comments

Quality

0.10

0.40

Moderna is one of
the largest and
leading
manufacturers of
textiles producing
premium quality

Well
understandin
g of the
market

0.17

0.68

The company
builds an
experience up to
70 years

Modern
equipment
used

0.10

0.20

The factory is
equipped with
fully automated
jacquard but
Production
efficiency needs
to be improved in
order to meet the
competition

Reaching
customers

0.05

0.2

The company
sells directly to
customers
through their own
retails

Strengths:

Internal
Factors

Weight

Rating

Weighted
Score

Comments

Companys
target market

0.15

0.3

Focused on
high-income
customers
and neglected
middle and
lower classes

Company
production

0.07

0.14

Neglecting
new tastes
and
preferences
and focusing
on classicquality textile
manufacturin
g

Company
profitability

0.10

0.20

Companys
costs are
higher and
profits are
lower than its

Weakness:

Avoiding Syria !

There is real risk of imitations and

trademark violations due to slack
copyright laws in Syria
Any cost-related Strategy wouldn't
succeed in Syria
Negative industrial growth
High Local competition with low prices

PESTEL EGYPT
Economical political

sociocultur technologi
al
cal

environme
ntal

GDP and its

classificatio
n

population

communicat
ion

Geographica
l location

Growth rate

poverty

internet

Labor force

Religious
beliefs

Unemploym
ent rate

Categories
in textile
industry

Imports and
exports
Employment
in textile
industry
Control over
supply chain

Low
external
intervention

Competitive analysis

Threats
EFAS
Global
economic
conditions.

Weight

0.05

Rate

Comments

If global economic
conditions are worsening,
the company may face
obstacles in expanding their
market

Be aware of the competitors

from other developing
countries especially China
Making balance between
price and quality

Competition

0.15

Price and
quality

0.15

Political
instability

0.10

Switching
costs

0.05

Total

Threatening the company

form expansion
2
The company should figure
out how to make the
customers loyal to it.
1.25

Opportunities

Weight

Rate

High demand

0.125

There is continued
demand for textile
fabrics, upholstery
and curtains.

Percentage of
textile industry
in Egypt

0.125

The textile industry in

Egypt constitutes
25% of the countrys
non-oil exports

High scope for

expansion

0.125

There is scope for

expansion of the
business and for
improving production
efficiency

BOP population

0.125

25% Poverty line

49% They cannot
afford to buy their
basic needs

Total

1.5

Comments

PESTEL
Political Economic

Politic
al
instab
ility

Jordan
is a
foundi
ng
memb
er of
the
Arab
Leagu
e.

Sociocultural

Technological

Industrial
Prefere Jordan was
production
nces
ranked as
growth rate :
chang
the 9th most
2.3 , 2.6, 2.7,
es
globalized
2.8
Popula
nation in the
GDP : 26.43,
tion
world
28.84, 31.02
growth Internet
Unemployme
rate :
penetration
nt rate : 13.5
2.2
rate is 65 %
Hyper
Popula
competition in
tion: 6
the industrial
million
factor from
U.S
companies
The textile
industry in
Jordan is
focused on
apparel
representing

Legal
QIZ
( qualifyi
ng
industria
l zone
between
Egypt,
Jordan
and US )
Free
Trade
agreeme
nt

EFAS
Opportunities:

Weight

Rating

Weight
ed
averag
e

Comments

Continual demand
for high-quality
curtains and
upholstery

0.10

0.4

High quality
demand in
Jordan

Existing prices of
European exports
and prices in Jordan
are much higher
than Moderna

0.17

0.85

Moderna can
sell its
products at
50%

Jordan Government
encourages exports

0.15

4.5

0.675

QIZ, FTA

Could be a price
leader

0.08

3.5

0.28

EFAS
Threats:

Weigh
t

Rating

Weight
ed
Averag
e

Comments

Political instability

0.15

0.45

Labor issues

Preferences/
lifestyle changes

0.2

0.8

Trends form
classic to
modern

Strong competition
from Europe

0.05

0.15

Jordan
exporting from
Europe
upholstery and
curtains

Economic and
energy instability

0.1

0.3

Inefficient raw
materials

Total

1.0

3.905

S-O

Establish manufacturing and overseas

distribution presence in Jordan to
benefit from the Jordanian
governments liberal policies for
exports to U.S. firms through QIZ and
FTA (Free Trade Zones)
No domestic businesses that deal with
upholstery and curtains, leaving a clear
market opportunity for Moderna.

W-O

Moderna could advertise its name to

market modern fabrics that are
increasing in demand in the Middle East

Production costs need to be minimized

consistent with quality and competitive
pricing by outsourcing fabrics for the
lower-income customer base, to China

S-T

Export high-quality fabrics at lower

prices to Europe to compete with
similar products sold at much higher
prices from Italy and other European
countries

With charged prices being low, Moderna

could tackle labor issues in Jordan by
minimizing workforce and giving
satisfying wages.

W-T

Production methodologies need to be

revamped in tune with modern
technology, preferably energy saving
technology to counter the energy
problems in Jordan.

Target high-profile customers in Europe

and U.S., to compete with Warda

Overall Reccomendation

Entering the Jordanian market is the

most viable and suitable strategy.