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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

samra tariq thanks alot. but as u know that every one is pretty clear about gul ahmad deployed strategies and quadrant in which they fall.. confusion is about nishat?? in which quadrant do they fall??? 2nd or 4th????

Thanks Samra Tariq, and we are waiting for more about this GDB

bro how u think about 3 rd qudrant

The company is only facing shortage of spinners and weavers; and it decided to close its spinning and weaving operations....the scenario is not covered by diversification strategies and retrenchment is regrouping through cost and asset reduction to reverse declining sales and profit, nothing like that is mentioned in the scenario, while liquidation is selling all of the company's assets, which is again not the case over here....what do you think???

samra tariq gud effort

keep it up and thnx for sharing

u r doing great work  keep it up :)  

I did it with respect to the second quadrant......

4th quadrant has only 4 strategies in it: concentric diversification, joint venture, horizontal diversification and conglomerate diversification. None of the strategies cover the complete scenario given for Nishat, because the company did not added anything new, it is operating with its current products as mentioned in the scenario;

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.
Also joint venture, is when two firms form a separate organization, Nishat exists with its own identity and if you google it you will find that Umar textiles is also operating, Nishat only acquired the assets of Umar textiles which is covered by horizontal integration, i.e seeking ownership or gaining control over competitors.... 

The scenario is covered by the intensive strategies (market dev., market penetration), horizontal integration and divestiture as mentioned by fighting falcon shakeel bro. 

Regards...

Thanks Samra for such a nice idea

NISHAT GROUP OF COMPANIES
Corporate Strategies followed
The strategies usually that nishat mills follow are:
Growth strategies
Vertical integration
Horizontal integration
Backward integrationIn growth strategies the have been growing Backward by moving on valuechain and becoming supplier their selves.Horizontal integration by Nishat mills is in such a way that they areexpanding their product line and as well as distributing to more geographicallocations.Being involved in a forward integration they are their selves the distributor of their goods manufactured.Mostly they are involved in Taper integration which the firm produces lessthen half of its own requirement and buys the rest from outside suppliers
 
 
Strategy Followed by nishat group of companies:
The strategy followed currently is Differentiation StrategyA differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and thatcustomers perceive to be better than or different from the products of thecompetition. The value added by the uniqueness of the product may allowthe firm to charge a premium price for it. The firm hopes that the higher  price will more than cover the extra costs incurred in offering the unique product. Because of the product's unique attributes, if suppliers increase their  prices the firm may be able to pass along the costs to its customers whocannot find substitute products easily.The benefit of this strategy for Nishat mills are:
Access to leading scientific research.
Highly skilled and creative product development team.
Strong sales team with the ability to successfully communicate the perceived strengths of the product.
Corporate reputation for quality and innovation

Thanks...but angel sweet doll, differentiation strategies are not part of GSM...the info. you shared is the one which the Nishat group of companies released in their annual report of 2012...we have to research a bit but also we have to keep in mind the scenario given to us...

yes, samra tariq you are right. we discuss situation as they give us, not for their current working. Hum ko jo scenario diya gaya hai, oss ko nazar mai rahk kr batana hai, un ki current laying nai batani.   iss liya surffing chor kr apna apna view discuss karien accordingly scenario........... 

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