Operations Strategy for Giordano - Essay Example

Going higher up the corporate ladder, the strategy can be seen at the corporate level. Giordano does not place emphasis on top management, and this feels to convey an informal feeling among the company’s employees. That’s not to say that the company’s employees are lazy; they’re not. Management only wants to create an environment where employee participation is encouraged. Just to keep employees on their feet, customer feedback cards are available in each store so that customers can contribute to helping the company to improve efficiency. Lastly, the company’s IT system has helped it to continue to stay one step ahead of its customers by providing products that they want before they know they do. All of these factors have helped to contribute towards Giordano’s competitive advantage in the marketplace by helping it stay ahead of the competition.

2) Giordano’s operations strategy is very consistent with its marketing strategy. The focus of Giordano’s marketing efforts is on two areas, high-quality service, and low-cost leadership, both of which Giordano is very successful at achieving. The test will come when Giordano is forced to move its marketing strategy away from low-cost leadership to a combination of high-quality products at considerable prices. If Giordano is able to adjust its operations strategy to take this new market positing into account, then the company has a very good chance of capturing a significant market share.

3) The biggest operations management challenge for Giordano as it expands into new territories is staying true to its principles. Although the company will need to adjust its marketing strategies based on the local culture, the focus still needs to be on excellent customer service along with high-quality products. As of right now, Giordano does not allow its foreign subsidiaries to act independently of each other. Control is centralized in one region: Hong Kong. If Giordano is going to increase its market share in new markets, then it will need to rely more upon locals to increase performance and efficiency. There is nothing wrong with monitoring each foreign subsidiary from Hong Kong, but there needs to be some freedom given to subsidiaries so that they can become a force in their local market.