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CASE 5 Giordano: Positioning for International Expansion
JOCHEN WIRTZ As it looks to the future, a successful Asian retailer of casual apparel must decide whether to maintain its existing positioning strategy. Management wonders what factors will be critical to success and whether the firm’s competitive strengths in merchandise selection and service are readily transferable to new international markets. To make people “feel good” and “look great.” GIORDANO’S CORPORATE MISSION In mid-2009, Giordano, a Hong Kong-based retailer of casual clothes targeted at men, women, and children through its ?ve company brands—Giordano, Giordano Concepts, Giordano Ladies, Giordano Junior, and Blue Star Exchange—was operating more than 1,800 retail stores and counters in some 30 markets worldwide. Its main markets were mainland China, Hong Kong, Japan, Korea, Singapore, and Taiwan. Other countries in which it had a presence were Australia, Indonesia, Malaysia, the Middle East, and North America. In September 2008, there were 1,757 Giordano and Giordano Junior stores, 46 Giordano Ladies stores, 29 Giordano Concept stores, and 111 Blue Star Exchange stores. Sales had grown to HK$4,950 million (U.S.$561 million) by 2007 (see Exhibit 1). Giordano stores were located in retail shopping districts with good foot traf?c. Views of a typical storefront and store interior are shown in Exhibit 2. In most geographic markets serviced by Giordano, the retail clothing business was deemed extremely competitive. The board and top management team were eager to maintain Giordano’s success in existing markets and to enter new markets, especially in mainland China. Several issues were under discussion. First, in what ways, if at all, should Giordano change its current positioning in the marketplace? Second, would the factors that had contributed to Giordano’s success in the past remain equally critical over the coming years, or were new key success factors emerging? Finally, as Giordano sought to enter... Read Full Essay

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