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  1. “Gul-Ahmad” has primarily been in the business of designing, developing, and selling trendy footwear, clothing, equipment and accessories. It’s a well-managed company in a striking industry, the company has a strong brand image, and they are successfully capturing the value created from their investment. Gul-ahmad is using high technology to move ahead of their competitors and produce according to the customers need and want. They recently added kid’s clothing and men’s shirts in order to reach more customers and to achieve business synergy. They are very famous in designing summer lawn, but to increase market share they decided to invest money in winter clothing just to sell new products with their brand name in a mature industry. As to combat in a mature market and to sustain its strong competitive position Gul-ahmad can also stretches its business by mutual agreement with “Asian furniture pvt Ltd” by offering home décor services in order to access to the new market and cost and risk reduction with new partner.

 

  1. Nishat group of companies is a leading business house of Pakistan. The group has presence in all major sectors and one of the success stories of Nishat group is the Nishat Textiles that caters to spinning, weaving, home textiles, garments and Nishat linen to name a few. The company has the most modern and well-equipped manufacturing units related to textiles and its relevant operations. Over the years and as a result of careful management policies, consolidation of operations and an effective marketing strategy, the growth trend has risen in its various business units too. It is closely conforming to its mission of providing quality products to customers and discovering new markets to uphold and develop sales of the company so as to achieve best possible prices of products of the company for maintaining growth and prosperity of the company. In 2005, it acquired the assets of Umar Fabrics Limited as well. However, due to better opportunities elsewhere the company faces shortage of skilled spinners and weavers, due to which it may decide to pay attention to its garments and home textile units only and stop its own spinning and weaving operations.

According to the above scenarios discussed, you are required to study the various quadrants of the ‘Grand Strategy matrix’ and determine which strategy is being adopted by Gul-Ahmad and Nishat group respectively?

NOTE:

You must only specify the strategy being used and the quadrant in which each company lies. Also, provide 2 relevant reasons to justify your answer.

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Replies to This Discussion

doll sahba ka thanks

us nai to pora PHD maqala hi likh diya hai,,,,,,

jo mujay samjh aye that is

gul jee

uses

1.Concentric diverstification

2. horizantal diverstification

Aur Nishat jee

1. Forward integration

2. Backward integration

Kiyun bhai studanto

maine gul ko 4th quadrant mai dala hai joint ventures ki waja se...n Nishat 1 as they are leading business house

and every one please ye b dekhein 2 mai wo ayen gy jin ki weak competitve postion ho and nishat leading business house hai

Thanks Rubeena, I was ignoring the "leading" factor. I think your approach is the most correct.

Aap nai sahi dala hai

i agree, i thouht the same

shabbir ghuman AGR GULL G 1ST QUARDRANT MAIN FALL KRTI HA TO CONCENTRIC DIVERSIFICATION KESY GE????????

CONCENTRIC DIVERSIFICATION:Adding new but related products.yhi definition ha na CD ke

to gulll ge koi related product to add ni ke unrelated add ke hn.what do u say??????

mery khial sy to HORIZONTAL DIVERSIFICATION and MARKET PENERATION ha.

HORIZONTAL DIVERSIFICATION:“Gul-Ahmad” has primarily been in the business of designing, developing, and selling trendy footwear, clothing, equipment and accessories.
They recently added kid’s clothing and men’s shirts.

kids clothing and men's shirts are unrelated products.

MARKET PENERATION

to increase market share they decided to invest money in winter clothing just to sell new products with their brand name in a mature industry. 


ab bato

but in the first quardrant there is no HORIZONTAL DIVERSIFICATION.There isO HORIZONTAL INTEGRATION.

HORIZONTAL INTEGRATION:As to combat in a mature market and to sustain its strong competitive position Gul-ahmad can also stretches its business by mutual agreement with “Asian furniture pvt Ltd” by offering home décor services in order to access to the new market and cost and risk reduction with new partner
.



Gul gee 4 mein hai first mein nai jee

they add new to old variety like children dresses

and furnitare that is not related to first product

to hoya na dono horizantal and concentric

kiyun studantanee jeee

shabbir ghuman pa g gull 1st quadrant main fall krti ha not in 4th

shabbir is ryt.....gul ji is in 4th quadrant coz there is no joint venture in frst quadrant n even there is no backward integration in gul ahmed so its 4th quadrant n in nishat it is 2nd quadrant coz there is divestiture n liquidation ......hope so m ryt

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