course 513_case presentation
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Giordano: International Expansions
Question 1
How would you describe and evaluate Giordano’s 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 evaluateGiordano’s 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
Giordano’s 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 don’t
want a shop selling value for money mid priced trendy fashion wear. What I want to say is:
Giordano don’t 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 Giordano’s key success factors and sources of competitive advantage? Is its
competitive advantage sustainable?
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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 doesn’t 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.
Giordano’s 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 verychoosy 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.
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Shouldice Hospital Case
Shouldice Hospital is a hospital with a specific area of expertise in hernia. And this expertisegives 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. Let’s 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.
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• 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:
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• 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 another’s 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.
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Questions for Shouldice Hospital Limited:
What actions should be taken to expand the hospital’s 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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Sixth Sense
01 Farhin Bin Anwar 259
02 Md. TaiaburRahman Rossi 260
03 Md. Omar Faruqe 261
04 ShihabUddinRasel 263
05 Fazley Rabbani Nahid 264
06 Md. Shafiul Bashar 265
07 SubrataGhosh 267
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COURSE 513
Service Marketing
Submitted to
Mr. Arifur Rahman
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Assistant professor
Department of Marketing
University of Dhaka
Submitted by
Sixth Sense
13 Batch ( ‘A’ section)
Department of Marketing
University of Dhaka