Giordano

1 Executive Summary

Giordano is operating within an industry characterised by high and increasing competition, intense

rivalry between firms, threat of new entry, moderate customer loyalty and increasing power of

suppliers. Giordano’s competitors are all adopting aggressive expansion strategies in Giordano’s

Asian markets and are offering products in direct competition, as well as products at higher

Willingness-To-Pay (WTP) prices. Giordano has historically positioned itself as a producer of value

for money clothing, selling to the middle class of society within Asia. This positioning has been

supported by Giordano’s core competencies in supply chain management, a pleasurable shopping

experience, focus on customer’s basic clothing demands, and a conservative financial position

(Appendix H and I).

Giordano’s recent attempt to move into the higher WTP category with its ‘Giordano Concept’ line

and move into the USA is bold, and will theoretically capture more customer surplus, further

differentiating the Giordano offering. However, there is a possibility that this move could cause

significant negative financial and brand consequences if it fails. Failure of this strategic shift is likely

to occur if Giordano does not quickly move to support the revised strategy. In addition, Giordano

must be prepared