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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

Angel, I think Kids' Clothing & Men's Shirts are related products.

yes its related products n gul is in 4th quadranttttttt

nishat is in 2nd

Amjad Cheema plz explain ye kesy related products hn??????

ofcoourse related hy garments hain similar type products hy apko is mai change kya lg rha hy

AE ALLAH TU MERI MUDAD FRMA M TOTALY CONFUSE HU CHUKI HU AB()

m sayng gul is in 4th n nishat in 2nd

Angel, just like Namrah said they are all garments. They can all be manufactured on the same plant i.e. they are using the same technology. Thus, they have to be related.

And Namrah, I also think it's 4th and 2nd.

yeah u r right Amjab Cheema.. these are related products.. 

sweet doll tell me whts d confusion i can explain u

yaar y do we use divestiture and liquidation? nishat is not selling anything else.. could u plz explain this for me.. 

Gul-Ahmad

RAPID MARKET GROWTH

Quardrant-1

Market development                          Market penetration                             Product development

Forward integration                             Backward integration                         Horizontal integration        \

Concentric diversification

Nishat group of companies

Quardrant-3

Retrenchment                                      Concentric diversification                  Horizontal diversification

Conglomerate diversification            Liquidation

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