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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

What would be for Nishat group???

Nishat group will fall in second quadrant because it is following market penetration and development, horizontal integration and divestiture strategies.

Fighting falcon i also thought the same par ye hai k us taraf weak competitive position ban jate hai jo k Nishat ki hai nae

Market Penetration. 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.

Market Development. 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.

Horizontal Integration. In 2005, it acquired the assets of Umar Fabrics Limited as well.

Divestiture. 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.

They are weak because they are taking such steps to improve their market rate. Their management policies are also careful not bold or aggressive. They have decided to close few units as well. All these indicate that they should fall in weak competitive posn and rapid market growth (2nd quadrant).

Thanks alot bro...

why do we use divestiture strategy ?? divestiture means selling a division or part of an organization. right?? so according to given scenario, they were not sold anything else..  

I think Gul jee

falls in divestiture strategies

and Nishat is integrated strategies

 

Kiyun studanto kha khayal hai

shabbir ghuman bhai just aik strategy batni ha ye aik sy zadia??????????

Ghour kro 2 reason hai jo statergies istamaal ki gaye hai

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.

I found some useful info. for gul ahmed; bs zara dair sy mili...apologies......

for more info. visit this link:

http://www.slideshare.net/omermirza/104957017-finalgulahmedreport

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