Giordanos Operation Strategy - Essay Example

This paper illustrates that it has been consistent in Giordano’s operation strategy and maintained its competitive pricing by having a centralized distribution center and uses outlets only for sale of garments. It extensively uses technology within its operations. Sales figures are used to forecast next day’s orders and fill the inventory at night. Keeping low inventory also helps it to react timely to changes in fashion and produce goods that meet the changing demands of the people.

It, therefore, saves considerably through fast selling items and benefits are passed on to customers through quality garments that are low priced. Thus, its philosophy of ‘value for money’ has significantly contributed to its competitive success. Giordano has been quite successful with its market strategy which relies heavily on exemplary customer service and cost leadership. It has maintained its leadership position in low priced quality garments. The strategy has been very successful during the financial crisis but it does not seem to be that effective when it increased its cost of garments that were trendier and catered to higher economic strata of society.

Thus, in order to meet the demands of the segmented market, it introduced new label called Bluestar Exchange or BSE which were trendy and competitively priced. This has helped Giordano to be consistent with its market strategy of maintaining cost leadership. As Giordano expands its business interests into new market segment and territories, the biggest operation management challenges that it faces is that from other international brands like Zara, Gap, Espirit, Thames etc. which are already established brands in the mid and upper segment of the market.

Apart from Bluestar Exchange that meets the demands of the low and mid-income group, it has introduced sister brands, Giordano Ladies and Giordano Junior that target higher end segment.