lOMoAR cPSD| 34990799
Khaadi SCM report
Fashion Marketing (Pakistan Institute of Fashion and Design)
lOMoAR cPSD| 34990799
Final Report of Strategic Management
Section A/B
Fourth Year
Fashion Marketing and Merchandising
Pakistan Institute of Fashion and Design
Insha Dar 179 (A)
Maryam Maqsood (B)
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lOMoAR cPSD| 34990799
Table of Contents
Introduction.................................................................................................................................... 3
Four Ps ........................................................................................................................................... 3
Products ................................................................................................................................................... 3
Price ......................................................................................................................................................... 3
Place ......................................................................................................................................................... 4
Promotions .............................................................................................................................................. 4
Mission Statement of Khaadi......................................................................................................... 4
Vision Statement ............................................................................................................................ 4
Values ............................................................................................................................................. 4
Competitive Profile Matrix ............................................................................................................ 5
Evaluation ............................................................................................................................................... 6
Porter’s Five Forces ...................................................................................................................... 8
Rivalry among competing brands ......................................................................................................... 8
Potential Entry of New Competitors ..................................................................................................... 9
Potential development of substitute products ...................................................................................... 9
Bargaining Power of Customers............................................................................................................ 9
Bargaining Power of Suppliers ............................................................................................................ 10
External Factors Evaluation ....................................................................................................... 10
Evaluation ............................................................................................................................................. 11
Internal Factors Evaluation ........................................................................................................ 13
Evaluation ............................................................................................................................................. 14
Organizational Hierarchy .................................................................................................................... 15
Departmental Hierarchy ...................................................................................................................... 16
BCG Matrix .................................................................................................................................. 16
Evaluation ............................................................................................................................................. 17
SWOT Matrix ............................................................................................................................... 18
Space Matrix ................................................................................................................................ 20
Grand Strategy Matrix ................................................................................................................. 21
Evaluation ............................................................................................................................................. 21
Quantitative strategic planning matrix ....................................................................................... 23
Bibliography ................................................................................................................................. 24
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Introduction
Khaadi is Pakistani fashion and lifestyle brand founded in December 1998. Established
by Founder & Chief Executive Officer, Shamoon Sultan, Khaadi is a leading fashion retailer
offering compelling home and clothing, shoes and accessories, fragrances, skin and hair care
solutions for women and children. Khaadi pioneers new traditions in fashion with an innovative
approach inspired by global fusion, a contemporary and fashion-focused context. This ethos
manifests itself within all Khandi’s designs and brands. With an unparalleled retail network;
currently holding over 480,000 square feet of exquisitely designed and well spread-out brickand-mortar stores 52 in Pakistan and 21 in UK, UAE, Qatar, and Bahrain, Khaadi adopts a global
outlook for capturing market trends and combines the exceptional beauty of East and West. The
first store was opened in Karachi’s Zamzama in 1999. In 2017, Nasir Mansoor, a respected figure
in labor rights circles and the deputy general secretary at the National Trade Union Federation in
Pakistan, rejected a defensive statement issued by Khaadi HQ in response to accusations by
Khaadi factory workers that the clothing company had abused a multitude of workers’ rights
ranging from not providing workers official written appointment letters to not issuing mandatory
SSI (Social Security Institution) deposits, thereby compromising employee job security and wellbeing. . Khaadi means hand woven and it has remained consistent with its name and keeps on
delivering diverse styles utilizing hand-woven textures on its chose products. khaadi characterizes
its lines as ideas and at first had pret (Ready to wear), Unstitched (Fabric) and Man (Eastern
wear). Over the previous couple of years khaadi has presented various new ideas which
incorporates khaadi khaas which highlights restrictive and constrained release pieces, it
additionally incorporates run for kids (for 2-12 years).
Four Ps
Products
• Variety of men & women clothes.
• Variety of kids clothes.
• Accessories.
•
Home Accessories.
Price
• Based on the quality of products.
•
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Based on the seasons
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•
Based on the offer freebies.
Place
• First outlet was opened at Zamzama shopping mall Karachi and then in other cities of
Pakistan.
•
•
Khaadi has its international outlets in Canada, UAE and USA.
Retailed shops are opened at:
o Lahore
o Karachi
o Rawalpindi
o Islamabad
o Faisalabad
o Sialkot
o Peshawar
o Gujranwala
o Gujrat
o Hyderabad
o Rahim Yar Khan
o Multan and so on.
Promotions
Khaadi do promotions through different networks, they rely on the power of social networks,
advertisements, sale seasons, business partnership with other organizations and offer freebies.
Mission Statement of Khaadi
The mission statement of khaadi brand is ‘’To establish stores with global footprint’’.
Vision Statement
The vision statement of khaadi brand is ‘’To revive the ancient craft of the handloom,
reinterpreting it within a more contemporary and fashion focused context, to suit the high
street’’.
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Values
•
Ethics
•
Social responsibility
•
Commitment
•
Sustainability
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Competitive Profile Matrix
Critical Success Factor
CPM Matrix
Your Company
Weighted
Score
Competitor 1
Sapphire
Competitor 2
Nishat
Competitor 3
Generation
Weighted
Weighted
Weighted
Weight
Rating
Rating
Score
Rating
Score
Rating
Score
0.10
3
0.3
3
0.3
2
0.3
4
0.35
0.10
3
0.3
4
0.35
3
0.3
3
0
.
3
0.11
4
0.44
3
0.3
2.5
0.25
3
0.3
0.11
4
0.36
3
0.27
3
0.27
3
0.27
0.09
3.5
0.315
3
0.27
2.5
0.225
3
0.27
0.09
3
0.3
3.5
0.35
3
0.3
3
0
.
3
0.09
3
0.27
3
0.3
2
0.18
2
0.18
0.09
3
0.27
3.5
0.315
3
0.27
3.5
0.315
0.08
4
0.32
3
0.24
3
0.24
3
0.24
0.07
11) Geographical spread 0.07
4
0.32
4
0.32
3
0.24
3
0.24
1) Marketing/advertising
2) Product range.
3) Product quality.
4) Customer satisfaction.
5) Customer loyalty.
6) Market share.
7) Online presences.
8) Price competitiveness.
9) After sale service.
10) Location.
3
0.21
0
0
0
0
0
0
(International)
3
0.21
0
0
0
0
0
0
Total
1
5
3.345
2.945
2.595
2.895
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Evaluation
As we know that competitor profile matrix identifies firms’ major competitors and its
particular strengths and weaknesses in relation to a sample firms’ strategic position. Comparison
have been made on the bases of the strengths and weaknesses in counted by careful in-depth
analysis of competing firms. Using interviews and secondary research and personal experience.
We have grouped both strengths and weaknesses of the existing firm khaadi in order to compare
the ratings and weighted scores with its rivalry potential firm’s sapphire, Nishat and Sana Safina.
This comparison analysis provides important internal strategic information. In our case, the two
most important factors to be successful in industry are gaining and maintain customer
satisfaction and quality. Overall, it can be seen that khaadi is on the top as compare to its
competitor’s sapphire with a total of 2.945, Nishat linen with a total of 2.595 and Generation
witha total of 2.895. khaadi is strongest as indicated by the total weighted score of 3.345.
Advertisingis indicated by weight of 0.10, the rating given to khaadi is 3, khadi’s previous
promotional campaigns were weak as compare to its competitors, now khaadi is working on their
advertisingand their recent promotional campaign is according to the new trends. In their recent
campaign they have collaborated with Esra Belgic. Generation has been given 4 rating as
generation campaigns are very relevant to our society. It talks about the issues that’s been
happing in our country, Nishat is indicated with least rating which is 2 because they haven’t
launched any proper campaign. They lack behind in their advertising sector. They’re not
targeting their customers through promotional campaigns. Sapphire has also been rated 3, as now
their campaigns are also improving and according to the trends for example, they launched ecofriendly bags but they need to work more to face challenges in advertising sector. Coming
towards second factor which is product range, it has been indicated by the weight of 0.10, the
rating given to khaadi is 3, Khandi’s portfolio is still incomplete, they’re some untapped product
categories such as active wear, which they can work on. Sapphire has been rated 4 as they offer
everything under one roof. They cater most of the product categories. Sapphire and Nishat linen
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have been rated 3 as they also don’t cater some product categories as compare to their
competitors. Product quality is the third factor, it has been indicated by weight of 0.11. The
rating given to khaadi is 4, Khaadi is known for its quality, they focus on their quality of the
products as they know that quality play’s important role in purchasing. Khaadi is strongest on
maintain quality control standards. Generation and sapphire have been rated 3, their quality is
good as compare to Nishat linen. Their customers are satisfied from their quality. Fourth factor is
customer satisfaction, which is indicated weight of 0.11, which plays vital role in enhancing the
sales and building reputation of the brand and quality provides as the means of excellence in the
product that fulfils. In the product or service that fulfils or exceeds the expectations of the
customers. Khaadi is rated 4 because of their policies they offer to their customers. They try to
cater with the problems of their customers. Sapphire, Nishat linen and Generation have been
rated 3 as their policies are bit rigid as compare to khaadi. They there is less flexibility in their
policies. Coming towards fifth factor which is customer loyalty, which is indicated weight of
0.09. The rating given to khaadi is 3.5, as customers of khaadi are loyal to them. They don’t
easily buy product from other brand it is because the quality khaadi offers and because of design
element. Generation and sapphire have been rated 3, as their customers are also loyal to the
brand. They also don’t switch easily to other brands whereas Nishat linen has been rated 2.5
because they have not maintained their quality standard and maybe they’re offering product
range as compare to its competitors. Coming towards the sixth factor which is market share,
which is indicated weight of 0.09. The rating given to khaadi is 3, as it has a huge market share
in the Pakistani market and in the online fashion market. Nishat linen and Generation have been
rated 2.5 as they have low customer base, as generation’s garment has particular style because of
that not everyone buys it. Sapphire has been rated 3 as their customer base is strong as compare
to Nishat linen and generation. Online presence is the seventh factor, which is indicated weight
of
0.09. Khaadi and sapphire has been rated 3 on this factor as they have maintained very strong
online presences in the new digital advance age. Khaadi website has been ranked as number 2 in
2019, Whereas in Nishat and Generation has been rated 2 as compare to its competitors, they
have good online presence but they’re not as good Khaadi and Sapphire. Price competitiveness is
the eighth factor, which is indicated weight of 0.09. This factor is very important in the retail
industry, Khaadi and Nishat has been given 3 rating and Saphire and Generation has been given
3.5 rating. Almost they brands have same pricing strategies that’s why all these four brands have
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been rated closely. After sales service is the ninth factor, which is indicated weight of 0.08. This
factor also plays vital role in retail industry. It plays important role in maintain customer base.
Khaadi is known for its after-sale services, they have maintained their customers through
providing best customer services as compare to its competitors, they make sure that their
customers are satisfied, this is why khaadi has been rated 4 as compare to its competitors. Nishat,
sapphire and generation has been rated 3, their customers are also satisfied with their after-sale
services but their after-sale services are not as good as their competitor khaadi. Location is the
tenth factor, which is also very important, for maintaining customer base location matters a lot. It
should be convenient for its customers. Khaadi and sapphire has been rated 4 whereas in Nishat
and generation has been rated 3. All these four brands have rated closely. Their shops can be seen
almost everywhere. Last factor is geographical spread (Internationally), which is indicated
weight of 0.07, khaadi has been rated 3 as compare to its competitors. The brand has diverse
customer base with sales in both the local and international markets. The main international
markets include the largest store out of Pakistan in Mirdif city center in Dubai and 22 stores
across the UK and various stores all over the world. Nishat, Generation and Sana Safina has
been rated 0, their geographical spread (International) is 0, they have no stores out of boundary
of Pakistan, which is competitive edge for khaadi.
Porter’s Five Forces
Rivalry among competing brands
The competition in the industry is becoming very tough. The brands are competing with each
other on the basis of their prices they offer, for the quality they produce, customer service and
different strategies. The key competitors of Khaadi are Sapphire, Nishat, AL Karam and
Generation. All these brands and Khaadi itself has developed positive image in the market.
Pricing strategy is a method that attracts the customer towards the brand, Khaadi sale products at
the correct cost, in the opportune place, utilizing the most reasonable techniques for
advancement. the sale price of all these competitors is almost the same but Generation charges
slightly higher than the others this might be because the fabric is not manufactured in house.
When one brand puts up sale the others follow the same foot step and offer sales. The first to put
up sale is mostly Alka ram followed by Sapphire, Khaadi, Nishat and Generation respectively.
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Khaadi is exceptional in its in-store customer service as compared to its rivals because they have
a great number of sales persons present in the store.
Khaadi keeps it customers up to date through emails and text messages whereas, Nishat and AL
Karam lag behind in this aspect. All these brands Similar size of the firms.
Potential Entry of New Competitors
The apparel market is already saturated and the big brands like Khaadi and its rivals Sapphire,
Nishat and others hold a great market share. Threats of new entrance are always there. But it is
neglected as new company has to face a number of challenges and competitors in the market.
And existing companies are already a big giant for new entrance. On the other hand, large
capital, high initial investment is required and the prices of labor, Rent is very high. Technology
is also very expensive due to higher dollar prices. Setting up your own manufacturing unit like
Khaadi can be quite costly and require a lot of money and research.
Potential development of substitute products
Existing brands are already catering customers with a wide product category related to clothing
and beauty. One of the biggest threats from the substitute product or service is perceived level
and the relative price performance of that particular product development. Khaadi already
provide its customers quality fabric at not so high price points but there is still a threat that a
substitute product can take over the place of Khaadi in the market/industry. This is possible if the
substitute product is providing the same or better quality at the same or less Price. Moreover, the
increase in number of substitute products is also a threat for existing brands. Product price
elasticity is affected by substitute products, when a substitute comes in the market the demand is
affected of the existing product.
Bargaining Power of Customers
The bargaining power of the consumers is increasing day by day and same is the case with
Khandi’s customers. The buyer demands more and improved quality at an affordable price. The
bargaining power of the consumer is a great force that shapes the strategic planning of Khaadi
because there are lots of other brands that offers the same product category at the same price
points. Customers can easily switch if they feel they do not have any power, especially when the
consumer is buying a great volume of products. Brand loyalty at this point doesn’t
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seem to be that high. The consumers are often aware of the production cost and the profit margin
that brand has set up.
Bargaining Power of Suppliers
Bargaining power of supplier is increasing as put a barrier on import of raw material for
textile which is reduced up to 70% due to which local suppliers are getting an edge and
providing raw material at expensive rates. But in the case of Khaadi, bargaining power is nonexistent in terms of fabric because it has its own fabric manufacturing unit. It only exists for
when Khaadi out sources the accessories because it has to be outsourced from either China or
Thailand where there is a great deal of vendors to choose from.
External Factors Evaluation
EFE
MATRIX
OPPORTUNITIES
1) The annual population growth rate is growing by
2%.
2) Garment and textile sector shares the high rate of
total manufacturing of Pakistan’s economy.
3) Spending power increased to 11101050 PKR
million in 2019 from 10659937 PKR million in
2018.
4) Youth comprise of 32% of Pakistan (Follow
trends).
5) In the e-commerce market, the number of users is
expected to amount to 65.1 million.
6) Explore new local markets.
Weight
Weighted
Score
0.05
4
0.2
0.09
4
0.36
0.05
2
0.1
0.06
3
0.18
0.04
2
0.08
0.06
2
0.12
2
0.08
3
0.15
Weighted
Score
7) There is an increase in fashion sense among the
population of Pakistan.
0.04
8) International expansion into emerging markets e.g.
0.05
middle east.
THREATS
Rating
Weight
Rating
1) The GDP growth rate of Pakistan is 4.85 from 4.92.
0.07
10
3
0.21
lOMoAR cPSD| 34990799
2) The unemployment rate increased to 4.45% from
4.08%.
3) The inflation rate increased to 11.12% from
6.74%.
4) High competitiveness in the market.
5) The energy crisis effects the manufacturing in the
Production sector.
6) The GST tax of manufacturing and retailing is
17%
even during the pandemic.
7) Currency fluctuation and exchange rates can also
create problems.
8) Rising cost of raw material.
9) Uncertain environment (P o l i t i c a l ,
governmental
and health)
0.06
2
0.12
0.06
2
0.12
0.06
3
0.18
0.06
3
0.18
0.08
2
0.16
0.07
4
0.28
0.05
3
0.15
0.05
4
0.2
1
Total
2.99
Evaluation
In the above matrix, we have analyzed opportunities and threats for the khaadi so the first
opportunity for Khaadi is that the population growth rate of Pakistan is increased by 2%, this
gives the brand an opportunity to target new born of the already existing target audience that
includes mothers. Coming towards the second opportunity which is Garment and textile sector
shares the high rate of total manufacturing of Pakistan’s economy, this opportunity can be
exploited by manufacturing more different type of garment product lines or by bringing
innovations in textile sectors. The increased spending power increased to 11101050 pkr million
in 2019 from 10659937 pkr million in 2018 tells us that as the spending power is increased more
purchasing will be done, resulting in more sales for the brand and Khaadi can penetrate in the
market by use of aggressive promotions to bring more towards the brand and since the youth
comprises 32% of population of Pakistan, meaning there is a great segment of population that is
brand conscious and is well aware of what is trend and wants to look good and they are shifting
to brands to buy clothes and accessories so this gives Khaadi a chance to further increase brand
awareness and interest through campaigns and ads to bring more audience to the brand. One of
the greatest opportunities is the as the world is now a global village, the brand can reach more
international
emerging
markets
than
it
is
already
present
give Khaadi a competitive edge and also an international recognition.
11
in.
This
will
lOMoAR cPSD| 34990799
The healthy GDP rate for any country is between 2 to 3% and Pakistan’s GDP is not good which
meaning that value of goods being produced in Pakistan is decreasing. Until or unless the
economy gets stable and Pakistan reaches a good GDP rate there will always be threat to all the
businesses in Pakistan. Since the unemployment rate in Pakistan is increasing, proving that
people are losing jobs hence no income in hand no money to buy things. If this unemployment
rate keeps on growing and inflation rates keeps on increasing people will eventually be forced to
stop buying from the brands and will prefer places that sell at lowest rates. Another major threat
is the new competitors entering the market and the existing strong competitors like Sapphire,
Nishat and others. Every brand promise quality and it has become really difficult to stand out in
the market and make people choose your brand over others. Khaadi still has a control over a
great market share and can work more to stay on the top no matter how many players enter the
market. One of the most prevailing threats is the uncertainty of the situation because of the
pandemic many brands/businesses are shutting down because they are not making enough to
keep themselves in the business, people have also become reluctant to shop from brands because
their focus right now is to survive rather than focusing on wearing good clothes. Khaadi can let
people know that it is with them in this situation, they are emphatic towards its target market by
the use of campaigns. Overall, 2.93 score is indicating that Khaadi is operating well & taking
adequate advantage of various opportunities & trying to minimizing the threats.
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Internal Factors Evaluation
IFE Matrix
STRENGHTS
1) Presence in the international market.
Weights
Rating
Scores
0.04
3
0.12
0.07
4
0.28
3
0.18
0.09
4
0.36
0.07
3.5
0.245
0.05
3
0.15
0.06
2.5
0.15
0.05
2.5
0.125
0.06
3
0.18
0.05
2.5
0.125
Weighted
Score
2) Strong customer loyalty.
3) Company stocks up after every two weeks.
0.06
4) Company is renowned for its high-quality products.
5) In-house production.
6) They deliver the products quickly from the nearest
store as they have 52 stores.
7) Mechanized machines are involved in the
manufacturing.
8) Highly qualified and skilled management.
9) Khaadi contains big market share in apparel &
textile sector.
10) Focusing on Advertisement/Marketing
WEAKNESSES
1) Not paying adequately to their workers in Factories.
Weight
Rating
0.06
1.5
0.07
2.5
0.175
0.05
2
0.1
0.04
2
0.08
0.07
2.5
0.175
0.04
2
0.08
0.07
2
0.14
0.09
2) The textile sector is lacking behind in the technologies
that enhance the quality of the cotton
3) Khaadi has not been able to properly function its men
segment.
4) Small international market shares as compare to
potential.
5) High cost of production. (Rising cost of raw material
resulting an increase in cost of production)
6) Khaadi is not catering the low-income group.
7) No presence in Baluchistan.
8) Khaadi offers less product categories as compare to its
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competitors. (Shoes, bags, active wear)
Total
0.04
2
1
0.08
2.835
Evaluation
Being the one of the most popular brands in the local market, Khhadi is internally very
strong. One of the strengths of Khaadi is its presence in the international market including the
UK, USA and Middle East. Khaadi is planning to further expand in the foreign market. One of
the greatest strengths is that Khaadi offers high quality products to its consumers. Consumers are
often seen appreciating this factor of Khhadi a lot. This high quality along with the excellent
customer service has helped in creating a strong brand name and earn customer loyalty. Another
factor that helps strengthen Khaadi as a brand is its in-house production facility. Khaadi is
vertically integrated and this gives it an edge over one of its strong competitor Generation.
Furthermore, Khaadi is blessed with highly skilled management, LUMS and IBA graduates hold
the high positions, this way the brand knows what to do when and how to go about giving a
tough competition to other players in the market. Khaadi can try and convert its weaknesses to
strengths by paying justly to its labor force and by introducing new product lines. One of the
major weaknesses of Khaadi is that it does not perform well in its Accessories section and has
discontinued its men section. Another weakness is that Khaadi is not at all operating in
Baluchistan, with the increasing fashion sense among the target market, it can be a very lucrative
market to explore. This can give Khaadi another edge over its competitors. Khaadi can see this as
an opportunity and convert it to strength. Although 2.895 is not a very high score but it indicates
that Khaadi is operating well by using its strengths and that it should overcome its weaknesses
becoming stronger internally and giving a really tough time to its competitors.
Culture of the Firm
The culture of the company is very motivating. They not only work as team but they have open
door policy, anyone can come in talk to managers and even CEO if any problem arises or if they
need to discuss something. They appreciate the efforts and praise all the good work by being
humble and supporting each other by helping the fellow employee. There is no fixed dress code
anyone can wear whatever they wish to wear and makes them feel comfortable.
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Hierarchy
Organizational Hierarchy
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Retail Hierarchy
Departmental Hierarchy
BCG Matrix
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Evaluation
According to the BCG matrix, khadi’s pret have high market growth rate and high
market share, this is why it has been placed in the star quadrant. Khaadi generates its half of
revenue from their pret category. Their unstitched division has been placed in cow quadrant,
which means it has high market growth and low market share, along with the pret, khadi’s
unstitched category also generates high revenue. Home, kids and fragrances are placed in
question mark quadrant, which means that these categories have low market share and high
market growth maybe these categories are not properly developed, they need proper attention
and investment to make it become a star, lastly Accessories are placed in dog quadrant, which
means that it has low market share and low market growth. This category is generating no
revenue for khaadi, they’re drain on recourses. To make this category start, khaadi needs to
revamp it.
Internal Factors
External Factor
Opportunity
1) Khaadi can start exploring
new markets in other
countries where it does not
operate.
2) Expand product portfolio.
3) It will increase in fashion
17
Strengths
1) Presence in the
international market.
2) Khaadi is vertical
integrated.
3)Khaadi is now focusing on
marketing.
4) Highly skilled labor and
management.
5) Customer loyalty.
6) High quality product.
S-O Strategy
1) Increase in international
market share.
2) It can increase its target
audience with the help of
product development such as,
Khaadi for Children.
Weakness
5)They don’t cater to the
lower class.
5-2) They don’t cater kids
and home properly.
6) Lack of products for men.
7) Low wages to worker.
8) Decrease in sales due to
pandemic.
9) Customer switch between
brand very quickly.
W-O Strategy
5) Increase in customer base.
5) Increase in revenue.
6) Brand expansion.
7) Set a minimum wage
policy.
lOMoAR cPSD| 34990799
sense among the Pakistanis.
4) Acquire new advanced
machinery and technology.
5) Untapped segment. (class
with low income/Men and
kids)
6) khaadi can open new store
in Baluchistan.
7) Garment and textile
industry is largest industry in
Pakistan.
3) It will attract more
audience, thus increasing
sales.
4) Khaadi can stay up-to date
and can be more efficient in
production than it already is.
SWOT Matrix
Threats
1) Uncertain environment.
(breakout of covid,
lockdown)
2) High competition from
competitors. (wide portfolio)
3) Khaadi will surely have a
greater impact due to a
recession as it's a luxury
product and has high prices so
consumers will move to other
cheaper alternatives.
4) Decrease in purchasing
power.
5) New challenges for
entering into new markets.
(International and local)
6)High competitiveness in the
Market.
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S-T Strategy
1) Expand in the
international market where
situation is less worse- NZ
and Middle east.
2) Wide product portfolio.
5-3) Customers won’t switch
to other brands because of
high customer loyalty.
6) More improvised quality
W-T Strategy
5-2) proper product
assortment.
1-8) Strategic planning
should be done beforehand.
4-8) Reduction in mark-up.
5-9) Increase promotional
activities.
lOMoAR cPSD| 34990799
Space Matrix
Internal Strategic Position
Competitive (CP) -
External Strategic Position
Stability (SP) -
-2 Market Share
-3 Product Quality
-4 Customer Loyalty
-3 Khaadi is using latest mechanized
machinery
-2 Qualified and skilled management and
workforce (IBA, LUMS)
-5
-7
-5
-3
-5
-3
Average CP = -2.8
Financial (FP) +
4 Cash Flow
6 Inventory Turnover after every two
weeks
2 Net Profit
7 Leverage
6 Liquidity
Average SP = -4.6
Industry (IP) +
2
Financial Stability
5
Profit Potential
6
Growth potential
5
Better use of Resources
4
Khaadi is technically facilitated
Average FP=
Average IP=
5
FP+SP = 5+(-4.6) = 0.4
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Competitive Pressure
Barriers to the Entry
Inflation Rate
Risk in Business
Price Elasticity of demand
Demand Variability
4.4
lOMoAR cPSD| 34990799
IP + CP = 4.4+(-2.8) = 1.6
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lOMoAR cPSD| 34990799
Grand Strategy Matrix
Evaluation
Khaadi currently lies in the quadrant one as it is the market leader in terms of growth,
sales, market share and production capacity. It has got both the strong competitive position in the
market and rapid market growth rate which makes it lie in this quadrant which shows that the
company is in an excellent strategic position. Continuous concentration on the current strategies
would be wise rather than to shift from its established competitive advantages. Khaadi, being in
this quadrant, can take risks as well and can afford to take the advantage of the new
opportunities. The possible strategies recommended for Khaadi can be market development,
meaning it can enter into new market that is Baluchistan. Another strategy can be market
penetration by aggressive advertising and promotions to attract more and more customers thus
increasing customer base. The last strategy is related diversification, Khaadi can develop new
related products similar to its existing portfolio to cater to larger market that is still not being
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lOMoAR cPSD| 34990799
catered by Khaadi like Kids, Men or new diversified lines for females like sleep wear, cosmetic
etc.
Quantitative strategic planning matrix
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lOMoAR cPSD| 34990799
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lOMoAR cPSD| 34990799
Bibliography
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%20on%20December%20of%202020.
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(n.d.). Retrieved from https://www.marketingtutor.net/how-social-factors-affect-businessenvironment/
(n.d.). Retrieved from https://datareportal.com/reports/digital-2020-pakistan
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