SM Final Report

AL-KARAM TEXTILE PVT LTD
INSTITUTE OF BUSINESS MANAGEMENT
Researching Firm level Strategy and

Competitiveness 2012
April 16, 2012

Section: B
Enterprise/Corporation/Institute: Alkaram textile private limited

Address: H-T/11, landhi industrial area, Karachi-22- Pakistan
Name and rank of research partners:

Mr. Aijaz Hussain (manager accountancy)
Mr. Shahzad Ali Sayed (senior manager industrial engineering)
Mr. Attiq-ur-Rehman (manager of internal audit)
Name of IoBM researchers:

Quratulain Siraj (8726)
Muhammad Fahad Sheikh (8702)
Naveen Zehra (9411)
Sakina Javed (9246)
Francis Ubaldo Dsouza (6276)
Hamza Arshad
IoBM STRATEGIC MANAGEMENT 1|Page

Table of Contents
ACKNOWLEGEMENT ........................................................................................................................................... 5
LETTER OF TRANSMITTAL ............................................................................................................................... 6
EXECUTIVE SUMMARY ....................................................................................................................................... 7
OVERVIEW OF TEXTILE INDUSTRY IN PAKISTAN .................................................................................. 8
COMPANY PROFILE ....................................................................................................................................... 11
ABOUT ALKARAM .............................................................................................................................................. 12
HISTORY ................................................................................................................................................................ 12
OUR VISION .......................................................................................................................................................... 13
MISSION STATEMENT: ............................................................................................................................... 14
Proposed Mission Statement: .............................................................................................................. 14
EXTERNAL ANALYSIS ..................................................................................................................................... 15
PORTERS FIVE FORCES .................................................................................................................................. 16
THREAT OF NEW ENTRANTS .................................................................................................................. 16
BARGAINING POWER OF BUYERS.......................................................................................................... 17
THREAT OF SUBSTITUTES ........................................................................................................................ 18
BARGAINING POWER OF SUPPLIERS ................................................................................................... 18
THREAT OF RIVALRY AMONG EXISTING FIRMS .............................................................................. 19
PEST ANALYSIS ON PORTERS FORCES ..................................................................................................... 21
THREAT OF NEW ENTRANTS .................................................................................................................. 21
BARGAINING POWER OF BUYERS.......................................................................................................... 22
THREAT OF SUBSTITUTES ........................................................................................................................ 22
BARGAINING POWER OF SUPPLIERS ................................................................................................... 23
THREAT OF RIVALRY AMONG EXISTING FIRMS .............................................................................. 23
PORTERS GENERIC POSITIONS AND STRATEGY ................................................................................. 24
EFE MATRIX ......................................................................................................................................................... 25
CPM MATRIX ........................................................................................................................................................ 26
INTERNAL ANALYSIS ...................................................................................................................................... 27
VALUE CHAIN ...................................................................................................................................................... 28
SUPPORT ACTIVITIES: ................................................................................................................................ 28
Firm Infrastructure .................................................................................................................................. 28
Human Resource Management ........................................................................................................... 28
Technology .................................................................................................................................................. 29
Procurement ............................................................................................................................................... 29

PRIMARY ACTIVITIES: ................................................................................................................................ 29

Inbound Logistics ..................................................................................................................................... 29
Operations ................................................................................................................................................... 29
Outbound Logistics .................................................................................................................................. 29
Marketing and Sales ................................................................................................................................ 30
Service........................................................................................................................................................... 30
CORE COMPETENCY OF ALKARAM ............................................................................................................ 31
Home Textiles Products and Fashion Garments ............................................................................... 31
Yard Dyed Home Textiles ........................................................................................................................... 31
Branded Customers ...................................................................................................................................... 31
One Floor Operations................................................................................................................................... 32
More than 10,000 labor force ................................................................................................................... 32
STRATEGIC COST PROCESS MANAGEMENT ........................................................................................... 32
FINANCIAL RATIO TRENDS ........................................................................................................................... 32
IFE MATRIX .......................................................................................................................................................... 33
STRATEGIC ANALYSIS & CHOICE .............................................................................................................. 34
GRAND STRATEGY MATRIX .......................................................................................................................... 35
SPACE MATRIX.................................................................................................................................................... 36
TOWS MATRIX .................................................................................................................................................... 38
INTERNAL EXTERNAL MATRIX ................................................................................................................... 40
BCG MATRIX......................................................................................................................................................... 41
STRATEGIC DECISION & RECOMMENDATION ................................................................................... 42
MATRIX ANALYSIS AND SUMMARY ........................................................................................................... 43
QSPM ....................................................................................................................................................................... 44
STATEGIC IMPLEMENTATION .................................................................................................................... 46
STRATEGIC LEADERSHIP MODEL FOR AL-KARAM TEXTILE MILLS ....................................... 47
THE FOUR HURDLES TO STRATEGY IMPLEMENTATION ............................................................ 47
Resource Hurdles ..................................................................................................................................... 47
Cognitive Hurdles ..................................................................................................................................... 47
Motivational Hurdles .............................................................................................................................. 47
Political Hurdles ........................................................................................................................................ 47
BALANCED BUSINESS SCORECARD ......................................................................................................... 48
Framework for balanced business scorecard: ................................................................................... 48
Matrix for Balanced Business Scorecard:............................................................................................. 48

Financial perspective: ............................................................................................................................. 48

Customer perspective: ............................................................................................................................ 48
Internal perspective: ............................................................................................................................... 48
Learning & Development perspective:............................................................................................. 48
DIAGNOSTIC SURVEY OF PRIMARY & SECONDARY MANAGEMENT PRACTICES ................... 49
ALKARAM IN BLUE OCEAN STRATEGY................................................................................................. 51
Implementation of Blue Ocean Strategy in Alkaram should deliver:- ...................................... 52
ERRC GRID FOR ALKARAM: ...................................................................................................................... 53
REFERENCES: ...................................................................................................................................................... 53

ACKNOWLEGEMENT
We owe our profound thanks and deepest gratitude to almighty Allah, most merciful,
who blessed us with determination, strength, ability and divine help to complete this
piece of research work.
We would like to thank the entire team of ALKARAM TEXTILE MILLS AND RETAIL
OUTLETS, including Mr. Aijaz Hussain the manager accounts, Mr. Shahzad Ali Sayed
senior manager industrial engineering department and Mr. Attiq-ur-Rehman
manager of internal audit, who has provided us with valuable information regarding
their Organization, and also helped us in gaining constructive information regarding
our strategic management course.
We would like to thank our family members, friends & colleagues for their love and
support, bearing our swings of moods and frustration moments and above all for
helping and motivating us.
Lastly we are very grateful in acknowledging our whole hearted appreciation to our
teacher Mr. Javaid Ahmed who steered and stimulated us to complete this report.
Regards,
All group members.

LETTER OF TRANSMITTAL
April 16, 2012
Mr. Javaid Ahmed

Instructor, Strategic Management
Institute of Business Management, Karachi.
Dear Sir,
This is the term report on Strategic Management at Alkaram textiles (Pvt.) Ltd Pakistan.
This report consists of the macro-environmental analysis and industry attractiveness, the
company and competitor analysis, micro-environmental analysis and internal company
resources, strategic analysis and recommendations and strategic implementation.
The report has been completed after the perpetual hard work, determination and devotion
of past 3 and half months. If you have any additional questions, we would be pleased to
answer them.
Thanking you.
Sincerely,
Quratulain Siraj
Mohammad Fahad Sheikh
Naveen Zehra
Sakina Javed
Francis Ubaldo Dsouza
Hamza Arshad

EXECUTIVE SUMMARY
Alkaram textile private limited is a progressive textile mill having the highest Quality
Standards, currently engaged in Manufacturing and Marketing of garment wear as well as
home furnishing Products. It also runs its own retail outlets to sell its product directly to
consumers market.
According to Porters 5 forces in the textile Industry, the threat of new entrant is
moderately low because barriers to entry being high. Moreover, the bargaining power of
buyers is quite high; among many reasons contributing to this one of them is the large
number of buyers with relatively small purchases as well as many players in the industry
offering the product though being differentiated but resulting increasing the available
brands for the buyer to choose from without incurring any significant switching cost. The
threat of substitutes is low as the potential customers are already caged in brand equity
trap and are not willing to replace it with unbranded clothing. In addition to that, supplier
has low bargaining power also being in large numbers with holding standard material. The
rivalry among the competitors is intense. All of this, in addition to the macro environment
factors contributes to the industry being convincingly attractive in the industrial analysis.
Alkarams core competencies are the fact that they provide price competitive products
which are significantly below from other players operating within the textile industry and
also they have the most widely distributed retail networks with continuous supply of stock,
thus through these they have captured large chunk of consumer market, not only locally
but also in export business. Moreover, alkaram has an efficient supply chain management
system, which gives it an advantage of knowing exactly what is going on with its suppliers
and have effective and timely deliveries of raw material. Furthermore, it has also
introduced a new concept of having its own retail outlets all over the major cities, and
started ecommerce for convenience international consumer market along with creating e-
catalogue for on-site promotion.
Currently Alkaram is only focusing on consumer market which has lots of competitors such
as Gulahmed, Nishat, Lucky, Karma etc, which relatively highest market share. Thus when
we analyzed the strategies by doing different matrixes such as SPACE, TOWS, IE, GRAND
STRATEGY we chose two strategies that they can adapt: one of them being product
development by introducing either menswear or ready to wear garments through strategic
partnership with well known designers and the other being a strategy related to the
penetration of existing markets in through making more effort in promotion of e-commerce
to gain more market in export business. QSPM showed that product development is a
better strategy for Alkaram.
The implementation of the strategy is explained through the balanced business score card.
Furthermore; Alkaram has a conservative management style following seth culture, which
would have to be changed to implement the strategy. Their employees and leader should
be prepared to face a few years of loses, as lots of products will have to be cut down.
Moreover, a lot of employees will have to be let go, to implement this strategy.

OVERVIEW OF TEXTILE INDUSTRY IN PAKISTAN

Pakistan is one of the largest cotton-producing countries of the world. Both directly and
indirectly, textile sector employs the largest number of the human resource. The
contribution of industry to the countrys total exports is more than 60% (US $ 9.6 billion).
The contribution to GDP of textile industry is 8.5% (: Pakistan Economic Survey, SBP, and
TDAP). Pakistan is 8th largest exporter of textile products in Asia and catering for 38%
employment. At the time of independence, Pakistan had 2 textile mills with 80,000 spindles
and 3,000 looms. In 1990s, import duty on textile machinery was removed which brought
huge expansion in the spinning sector during the first 5 years of 1990s.
Currently, major losses are incurred by this industry with foreclosure looming around. This
decline is largely due to high cost of production as an outcome of increase in energy costs.
Depreciation in rupee has resulted in high cost of import. High cost of financing and high
inflation rate has also hampered the growth in textile sector. In the first 4 months (July-
October of FY2011), the sector witnessed the decline of 10.20% in output.
The growth of textile industry is appreciable and progress and development of Pakistani
textile sector is really good. The industrys overall contribution of taxes in 2011-12 is
expected to reach Rs. 23.5 billion, including payments of withholding taxes & applicability
of lower rate of sales tax of 4-6% on local supplies. Textile exports stood at $12.5 billion
from July 2010 to May 2011.
TEXTILE INDUSTRY'S ECONOMIC CONTRIBUTION 2008-09

Exports 54% OF TOTAL EXPORTS (US $ 9.57 BILLION)
Manufacturing 46% OF TOTAL MANUFACTURING
Employment 38% OF TOTAL LABOUR FORCE
GDP 8.5% OF TOTAL GDP
Investment US $ 7.0 BILLION
Market Capitalization 5.0% OF TOTAL MARKET CAPITILIZATION
(Listed Companies)
Source: Pakistan Economic Survey, SBP, TDAP
The textile sector is one of the most organized and regulated sectors of Pakistan. All
Pakistan Textile Mills Association (APTMA) is the chief organization that determines the
rules and regulations in the Pakistan textile industry. APTMA represents 391 textile mills
out of which 309 are spinning, 45 are weaving and 37 are composite units. The role of
APTMA is to facilitate textile industry to obtain and sustain global standing.
A leading textile exporter said that the Ministry of Textile had issued three notifications to
facilitate the industry in the past. Textile manufacturers will receive 3% drawback on
garments, 2% on home textile and 1% on fabrics. The government has yet to issue any
notification in the extension for these facilities.
The previous fiscal period starting from June 2010 to June 2011 experienced severe blows
as a result of massive destruction of cotton crops due to massive floods and heavier rains

throughout the country. Despite such positive figures and statistics, textile and garment
industries in Pakistan have not shown any considerable progress in producing valued-
added items. Our neighboring countries like India and China, on the other hand, have
achieved the largest share in the global market by exporting value-added textiles and
garments products, while local manufacturers in Pakistan are way behind in this.
Another mistake we have already made is that we tend to export raw materials to the
global textile buyers, and the same raw material comes back to the Pakistani market in
form of finished value-added textile products and fashion accessories on higher prices.
According to Mr. Abdul Saboor, one of the leading experts from the textile sectors, "On a
domestic front, Pakistan has hardly any cotton left in the fields and stocks at ginners are
not that much to feed the mills till the next crop comes. From price perspective Rs. 12000
to 13000/maund or $ 1.68/lb has now become a usual norm. These prices are driven from
NY futures, World A index and India's restriction on cotton exports. Pakistani mills are still
short of their minimum consumption requirements and more and more players are finding
it difficult to make decisions about buying raw material at these skyrocketing prices with
yarn fabric demand showing the resistance and receivable issues from the clients. Credit
limits have burst for many as cotton has reached over 150% of price since start of this
season. Another interesting point is the ratio of raw material price and conversion cost in
total cost of product as today raw material price makes for almost 90% of the total cost of
the product, as compared to 60% a year back".
Additionally, there is more focus upon supplying raw material to global textile
manufacturers. Though this helps us earn much-needed foreign revenues but also
eliminates the possibilities to turn the same raw material into value-added finish products
locally.
Lack of Research & Development (R&D) in Cotton Sector

Lack of Modernize Equipment
Increasing Cost of Production
Internal issues
Energy Crisis
Tight Monetary Policy
Lack of new investment
Raw material Prices increasing double digits
Thus, this is no doubt the toughest periods for the industry in decades. The global recession
which has hit the global textile really hard is not the only cause for concern. Serious
internal issues also affected Pakistans textile industry very badly. The high cost of
production resulting from an instant rise in the energy costs has been the primary cause of
concern for the industry. Depreciation of Pakistani rupee during last year which has
significantly raised the cost of imported inputs.

Furthermore, double digit inflation and high cost of financing has seriously affected the
growth in the textile industry. Pakistan's textile exports in turn have gone down during last
three years as exporters cannot effectively market their produce since buyers are not
visiting Pakistan due to adverse travel conditions and it is getting more and more difficult
for the exporters to travel abroad. Pakistans textile industry is lacking in research &
development (R & D).The production capability is very low due to obsolete machinery &
technology.
Textile and garments sector is the bone of our entire national economy that needs to be
further strengthened by applying investor-friendly policies and revised trade policies. It
would be quite rational if our local textile manufacturers stop supplying raw materials to
global buyers, and just focus upon manufacturing value-added items and textile products
and fashion accessories. For this purpose, we will, definitely, need a technology which, once
taken, enables us to produce high-quality standardised textile goods locally, without
investing our money on the import of the same. Moreover, we also need a safe working
environment in our textile and garments manufacturing industries where both genders are
treated equally, and share equal respect and status, without any sort of discrimination or
gender bias.
It is high time that alternative sources of energy such as coal, solar and wind power should
be should be considered without any loss of time. Pakistan is sitting on one of the richest
deposits of coal in the world. According to renowned scientist Dr Samar Mubarakmand,
Thar coal reserves have potential to generate 5000 MW electricity for 800 years.
Incredibly, Thar has 850 trillion cubic feet coal which far greater than the total oil reserves
of Saudi Arabia and Iran put together! Coal gasification is already being used successfully
by some forward looking players in the textile industry. Through such ingenious and
creative solutions, dependency on the gas and power companies can be curtailed
significantly for the industry to meet its full potential. In the coming issues PTJ will
highlight for our readers such unique and highly practical solutions to meet growing
energy requirements of the industry.
IoBM STRATEGIC MANAGEMENT 10 |

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COMPANY
PROFILE

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ABOUT ALKARAM
The Alkaram group was founded in March 1986 with a vision to be a provider of innovative
textile solutions worldwide. They are a manufacturer and supplier of distinguished fabric
for apparel, home and industrial markets with clients all over the world. Their ability to
create forward-thinking solutions that give their clients a competitive advantage is what
sets them up apart. Their core services include:
Fiber manufacturing
Spinning
Weaving
Knitting
Dyeing and printing of woven and knitted fabrics Designing
Cutting and Stitching
With a constructed area of over one million square feet, Alkaram has the capacity to fulfill
small, medium and large scale orders. They are one of the few vertically integrated
operations in Pakistan. Offering a diversified range of products, their customers can mix
and match from a wide variety of print, yarn dyed, solids, dobby and jacquard. They also
deal in twill, sateen, basket weave and percale, knitted to woven fabric; and thread counts
ranging from 130 to 1000. At AlKaram they also provide their customers with complete in-
house design solutions. Their creative center is equipped with state of the art designing and
sampling equipment and skilled textile artists.
HISTORY
The Group has its origins in the early 1900s when it started the trade of grains and oil in
the subcontinent. Entrepreneurial skills and acumen have always been the driving force
behind the success of the Group. Based in Karachi, the Alkaram Group has unfolded its
vision of growth and established its multifaceted concerns countrywide and abroad.
Following opportunities in the newly created state of Pakistan, the Group nourished in the
fields of textiles, F & B, salt mining, hospitality, trading and distribution.
A melting pot of skilled employees and advanced technology, Alkaram has been brushed
upon the wall of success using a simple formula; short lines of communication were kept,
along with consistently quick yet well thought-out decisions by managers that have been
part of the Alkaram mix since the start. In using this simple philosophy, they have ensured
that the identity of Alkaram has not been lost along the way and that the ladder of success
they have been climbing has been leaning against the right wall. Soon the Group became
the largest business family of the country by creating the most modern textile units that
went on to become household names of the country.
Alkaram Group
Alkaram Textile Mills Pvt. Ltd. founded in 1986 as a vertically integrated composite textile
mill, Alkaram is a household name when it comes to Fashion Fabrics. Alkaram Textile mills
creates everything from shower curtains to apparel for men and women.
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1) Amna Industries: completely integrated Spinning & Finishing mill specialized in knitted
Fabric. 2) Pakistan Synthetics Producer of PSF Fibre under technology from Teijin japan,
producing 80 Tons per day feeding into the Textile Spinning Sector of Pakistan. PSL Caps
Specializes in producing plastic and crown caps for the Beverage industry, PSL caps is
proud to have the most modern and advanced high speed machines. 3) Dhabeji Salt
Producer of salt for Chemical Industries and table salt. 4) Satter Ltd Local Trading House.
The Retail Arm of the Group: Realizing the growth in retail, the Group's vision is to become
the largest modem retailer by providing mid to upper markets brands to fulfill customer
needs. With customer needs at the forefront, we have created private brands and have
franchised international specialty brands to bring the best retail experience and value for
our customers.
OUR VISION
To be a leading textile solution enterprise operating on a global scale, from the
products we weave, to the markets we reach.
We do not intend to simply meet customer but also,

Create satisfaction.
Make excellence a habit through passion.
Develop human capital to fulfill their potential.
Equality and justice to all.
Give back to the environment and community as it has given to us.
Long-term thinking for safety and health.
Be research and development oriented.
Invest in education and training.
A Spectrum of Products
Alkaram boasts a wide range of products. Our spectrum is diverse, from fabrics such as
Yarn Dyed, to finished products such as shower curtains.
YARN FABRIC FINISHED PRODUCTS

Capabilities: Greige fabric Quilt covers/comforters
All Types of Cotton Yarn Prints Sheets from t144 to t1000
Polyester & Knitted Yarn Plain dyed Curtains
Twisted & Special Yarns. Dobby Shower Curtains
Products: Jacquards Kitchen linen
Ring spun Yarn Yarn Dyed fabrics Pyjama suits
Compact spun Yarn Bed in a bad
Lycra Yarn Fashion apparel
Novelty Yarn

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MISSION STATEMENT:
Al Karam will remain an undisputed leader in providing high quality products & services to
its customers. Al Karam will continue to provide superior quality Home Textiles and
Fashion Apparel.
Self Concept
Customer and Services
Concern for growth
Philosophy
Technology
Concern for public image
Concern for employees
Proposed Mission Statement:

Alkaram Textile Mills Pvt Ltd through its ground-breaking technology, efficient
management aims to maintain high ethical and professional standards by
contributing positively to the socio-economic growth of Pakistan by achieving
excellence in all spheres of related activities. It aims an effective management and
well synergized workforce by maintaining core values of commitment, integrity,
teamwork and transparency.

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EXTERNAL
ANALYSIS

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PORTERS FIVE FORCES

In order to apply Porters five forces to the textile industry in Pakistan, we used the
following template; out of which we were able to analyze the attractiveness of this industry
for firms in Pakistan, as well as to evaluate the potential success and profitability of the
firms in this industry.
THREAT OF NEW ENTRANTS
Yes ~ No
A THREAT OF NEW ENTRANTS (+) ()
1. Do large firms have a cost or performance advantage in your segment of the
industry?
2. Are there any proprietary product differences in your industry?
3. Are there any established brand identities in your industry
4. Do your customers incur any significant costs in switching suppliers?
5. Is a lot of capital needed to enter your industry?
6. Is serviceable used equipment expensive?
7. Does the newcomer to your industry face difficulty in accessing distribution
channels?
8. Does experience help you to continuously lower costs?
9. Does the newcomer have any problems in obtaining the necessary skilled
people, materials or supplies?
10. Does your product or service have any proprietary features that give you
lower costs?
11. Are there any licenses, insurance / qualifications difficult to obtain?
12. Can the newcomer expect strong retaliation on entering the market?
3
1 10
The threat of new entrants is very low, since the barriers of entry are high. The major
reasons for the threat of entry to be low are because there is a huge amount of capital
needed to enter into the industry, due to the need of updated design technology and
knowledge to set up the businesses and the difficulty in accessing these for the textile
industry. Moreover, the large companies existing in the industry are able to obtain huge
cost advantage which would be difficult for new entrants to obtain. Along with that there is
a large amount of cost to obtain the license which is not affordable for new companies.
Also, there is a need of a lot of market research to keep updated with customers changing
trends and life style, which is costly for the firms. Not only the cost of capital and R&D,
there is a lot of competition among the existing firms that make it difficult to enter into the
industry, namely nishat, gulahmed, lucky textiles etc. These well established firms make it
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tough for firms to enter into the industry, because of the strong brand image that these
firms have in the market. It is not easy to convince customers to change the companies they
already deal with. So new entrants will face very heavy resistance from the already well
established brands who not only have very high brand equity, but also with their
experience they can lower down their prices without considerable damage to their brands
to force the new entrant out of business. Thus this low threat of new entrants makes it a
favorable industry.
BARGAINING POWER OF BUYERS
Yes ~ No
B BARGAINING POWER OF BUYERS (+) ()
1. Are there a large number of buyers relative to the number of firms in the
business?
2. Do you have a large number of customers, each with relatively small
purchases?
3. Does the customer face any significant costs in switching suppliers?
4. Does the buyer need a lot of important information?
5. Is the buyer aware of the need for additional information?
6. Is there anything that prevents your customer from taking your function in-
house?
7. Your customers are not highly sensitive to price.
8. Your product is unique to some degree or has accepted branding.
9. Your customers businesses are profitable.
10. You provide incentives to the decision makers.
1 7 10
The above study demonstrates that there is a high buying power in this industry. There are
enormous numbers of buyers in industry compared to the firms that already exist; but each
of this these many diversified customers only purchase in small amounts. Even though
there is little cost associated with customers switching suppliers, however, there is a
massive amount of information that customers need about the products plus they are
aware of the need of additional information. Moreover, the customers cannot take the
firms functions in-house and also the customers have profitable businesses. Since the
product is quite differentiated and has strong brand identity, the customers are therefore
not so sensitive to pricing; however there is vast number of firms producing the same
product in the industry so this provides many choices to chose from hence increasing

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customers power over the industry. Thus, with this analysis, we can conclude that this
industry is fairly unattractive, since the bargaining power of buyers is quite high.
THREAT OF SUBSTITUTES
C Yes ~ No
THREAT OF SUBSTITUTES (+) ()
1. Substitutes have performance limitations that do not completely offset their
lowest price. Or, their performance is not justified by their higher price.
2. The customer will incur costs in switching to a substitute.
3. Your customer has no real substitute.
4. Your customer is not likely to substitute.
1 2 10
There is a low threat of substitutes in this industry, since there is very negligible chance
that the potential customers will substitute the firms products mainly because of the low
quality and sub-standard designs of the product and also due to the strong influence of elite
oriented society where buying the firms product is considered as status quo. Moreover, the
substitutes which are available, they do not meet the performance of the firms products
and therefore are not able to compete even with the lowered prices. Also, potential
customer is seemingly falling in the brand equity trap which makes it even more possible of
customers to remain with the firms product. Another important point is that since firms
products closest substitutes are locally sold unbranded clothing, so in the contemporary
sense there is no real substitute for these branded products available in the market, which
eventually makes the threat of substitutes very low. Thus, there is a low threat of
substitutes, therefore making the industry favorable and attractive.
BARGAINING POWER OF SUPPLIERS
D BARGAINING POWER OF SUPPLIERS YES ~ NO

(+) (-)
1. My inputs (materials, labor, supplies, services, etc) are standard rather than
unique or differentiated.
2. I can switch between suppliers quickly and cheaply.
3. My suppliers would find it difficult to enter my business or my customers
would find it difficult to perform my function in-house.
4. I can substitute inputs readily.

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5. I have many potential suppliers.

6. My business is important to my suppliers.
7. My cost of purchases has no significant influence on my overall costs.
1 3
10
This chart indicates bargaining power of suppliers being quite low. The supplier for the
textile industry mainly consists of wool and cotton thread suppliers, as well as the dyes of
the different colors and the design stamps /prototype molders to give finished clothes a
unique and appealing pattern. These suppliers are mainly local. The industry has a lot of
such suppliers to choose from which gives the industry an edge over the suppliers. The
industry can switch suppliers quickly and these suppliers will find it difficult to enter into
the industry, along with this the business is important for the suppliers. However, the
inputs needed are mainly standardized and have no uniqueness or differentiation;
therefore these inputs can easily be replaced and substituted. There is no considerable
addition to total costs due to the costs of purchases. Thus above analysis shows that the
bargaining power of the suppliers is fairly low, making the industry reasonably attractive.
THREAT OF RIVALRY AMONG EXISTING FIRMS
Yes ~ No
E DETERMINANTS OF RIVALRY AMONG EXISTING COMPETITION (+) (-)
1. The industry is growing rapidly.
2. The industry is not cyclical with intermittent overcapacity.
3. The fixed costs of the business are a relatively low portion of total costs.
4. There are significant product differences and brand identities between the
competitors.
5. The competitors are diversified rather than specialized.
6. It would not be hard to get out of this business because there are no
specialized skills and facilities or long-term contract commitments, etc.
7. My customers would incur significant costs in switching to a competitor.
8. My product is complex and requires a detailed understanding on the part
of my customer.
9. My competitors are all of approximately the same size as I am.
1 8 10

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The above study signals high rivalry existing in the textile industry. This industry in
Pakistan has substantial competitive enmities, there is a rapid growth in the industry, the
industry is not cyclical and there are notable product differentiations and brand identities.
There are high fixed costs relatively to the total costs of the business. Also it is not easy to
exit the industry since there are long-term commitments and specialized needed. There is
varying cost differences that the customers would incur in switching to competitors,
depending on which rival it is going for. Moreover, all the major competitors are almost the
same size. Thus, this analysis shows that the rivalry among existing competitors in the
industry is quite high, which make the industry somewhat unattractive.
F Overall Industry Favorable Moderate Un Implications

Rating favorable
1 Threat of new 8 1 3 quiet low
entrants.
2 Bargaining power of 6 3 1 Fairly high
buyers.
3 Threat of 3 0 1 very low
substitutes.
4 Bargaining power of 5 0 2 moderately
supplier low
5 Intensity of rivalry 6 1 3 Very high
among competitors.
TOTAL SCORE 28 5 10 attractive
An over-all study of the 5 forces of porters model shows that the industry is convincingly
favorable. The threat of new entrants is very low, so as the bargaining power of suppliers
and the threat of substitutes barely exists. However, the very high bargaining power of
buyers and the extremely high rivalry among the competitors does give an unfavorable
development for the textile industry. But by aggregating the results as well as the
comprehensive study of each of 5 forces shows that the textile industry is a persuasively
favorable and attractive industry.

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PEST ANALYSIS ON PORTERS FORCES

THREAT OF NEW ENTRANTS
POLITICAL: The major issue that firms in Pakistan face is the Political unrest in the
economy, this has led to inconsistent policies in the country, and this makes it difficult for
people who would invest into anything that costs huge amounts of capital. As a
consequence of the war on terror, the law and order situation still remains volatile, with
sporadic blasts and suicide attacks taking place in major cities, and therefore it causes the
threat of new entrants to be low. This makes the industry attractive.
There are a large amount of license fee that the textile industry in Pakistan has to pay,
along with that these firms need to make considerable payment of taxations to start the
manufacturing and selling of the textile products. This results in a lowered threat of new
entrants, and hence making the industry attractive.
ECONOMIC: There is a lack of adequate storage and transportation facilities for woolen
fiber roles. The Retail boutiques also do not keep sufficient amount of the material for sale
because of threat of changing customer preferences and also dont have adequate shelf
facilities to store a season stock. This affects the supply order of the products and also adds
to the costs. So this additional cost for firms, eventually decreases the chances of the new
firms to enter the industry, and hence makes the industry more attractive.
Moreover, Pakistan has poor roads and rail network. Therefore, the transportation time is
higher. This calls for higher inventory carrying costs and longer delivery time. All this adds
to the invisible costs. It is only during the last couple of years that good quality highways
have been constructed, that too only in selected areas excluding Faisalabad, Rawalpindi
which is the heart centre of clothing lines. Therefore, again the increased cost causes a
decrease in the chance for new firms to enter industry, & hence, makes industry attractive.
Also, The energy deficit proving to be a major obstacle as the economy strives to gain
momentum towards recovery. Therefore, this increases the costs of energy for the textile
firms, which in turn causes the barriers to entry to rise. This results in a lowered threat of
new entrants, and hence making the industry attractive.
The high inflation, fiscal deficits and impending external debt payments pose risks for the
economy coupled with low tax revenues and foreign investment. The decrease in the tax
revenues leaves less or no amount of spending for the textile sector of the economy, along
with that a decreased amount of foreign investment means that there are less amount of
spending on this sector. Therefore, there is a decrease in the threat of new entrants. Hence,
making the industry more attractive.
TECHNOLOGICAL: There are advanced automated machines available that have increased
the output and reduced the cost, also with the computerization results in an increased
efficiency of the textile Industry, at the same time decreasing barriers to entry, and hence
causing an increase in the threat of new entrants. This makes the industry less attractive.
With an increased need for consistent and regular investment in market research, the new
advanced technology is outdated quickly, which is not easy for new firms which therefore

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make it more difficult for new firms to enter. Therefore, a decrease in the entry chances of
new firms, thus making the industry attractive.
BARGAINING POWER OF BUYERS
POLITICAL
The economy remains stressed in the repercussion of the unprecedented floods and also
due to the continued delays in the implementation of key economic reforms. This leads to
an increased need for clothing of the unbranded local supply. Thus this factor is acting as
replacement for branded industry product resulting in harming the textile business. This
causes an increased bargaining power of buyers, hence making the industry unattractive.
ECONOMIC
The per capita income of an average Pakistani is low; therefore, spending on the branded
clothing takes a low priority. An average class Pakistani, which forms the majority class of
the society, would buy this branded product only when there is a special occasion.
Therefore, there are lesser amount of customers, with relatively smaller purchases and
hence increasing the bargaining power of buyers. This hence, decreases the attractiveness of
the industry.
SOCIAL
Increasing status quo concept as well as changing customer preferences, demographics and
standard of living is adding to the favorable and relatively increase demand for the branded
clothing. Moreover Pakistan is among those countries of the world where a major lump of
the income is bound to spend on clothing and eating. This adds to positive demand
increasing however, increasing choices provided by different competitors within the textile
industry eventually divides the overall inclining demand, leaving a small portion for each
firm. This therefore, causes a increase in the bargaining power of buyers and hence making
the textile industry unattractive.
THREAT OF SUBSTITUTES
ECONOMIC
The high inflation, fiscal deficits and impending external debt payments pose risks for the
economy coupled with low tax revenues and foreign investment. The decrease in the tax
revenues especially due to the payment of circular foreign debt along with its interest
leaves less or no amount of spending for the textile sector of the economy, also besides that
a decreased amount of foreign investment means that there are less amount of spending on
this sector. Therefore, there is a decrease in the threat of substitutes and hence, making the
industry more attractive.
SOCIAL
In Pakistan major chunk of people, falling under middle class segment, prefer using local
unbranded clothes and stuff handed down for generations from local small shops which
provides exact replica of the branded items although at low quality but also at low price,
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this is a potential threat for the textile firms, which results in increasing the threat of
substitutes, at the same time causing the industry to be less attractive.
BARGAINING POWER OF SUPPLIERS
POLITICAL
As the Government support to the textile industry has increased recently with in last
decade, which resulted in inducing the textile companies to avail local suppliers as well as
export orientation. This would increase the bargaining power of suppliers.
ECONOMIC
Due to weakening of the rupee, the supplier switching cost would be high. Hence, this
would increase the bargaining power of suppliers.
THREAT OF RIVALRY AMONG EXISTING FIRMS
POLITICAL
As the number of gigantic firms is increasing in the market, taking advantage of newly
implied government policies for textile sector support, resulting in major textile companies
producing more patterns and designs especially in women segment to grab bigger chunk of
market share. Thus creating cut throat competition in the market. Moreover, fight is not
only for local customers attention, but also due to easy international licensing & increasing
demand of Pakistani textile in international market firms export orientation has also
become a platform of rivalry. Hence, this would increase the rivalry among existing firms.
ECONOMIC
Due to weakening of the rupee as well as inclining inflation, the local textile firms
operational cost would be high. So this gives rise to local competitors to undertake price
wars. Hence, this would increase the rivalry among existing firms.
SOCIAL
Since with the changing trends of customer preferences as wells as living standard of living
of people of Pakistan, and also with the increasing demand of Pakistani textile all around
the world, the local textile firms are keen to capture more and more customers attention.
Hence, this would increase the rivalry among existing firms.
TECHNOLOGICAL
Usage of state of art manufacturing plants and latest printing and designing technology,
give firms products a new life to compete and gain more market share, thus indulging other
competitors to change to more advanced technology in order to bring break through styles
and quality in their products. Hence this would increase the rivalry among existing firms.

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PORTERS GENERIC POSITIONS AND STRATEGY

The Porters Generic Positions as illustrated in the above figure have two positions, that is:
Cost leadership
Differentiation.
Alkaram is currently using focused differentiation strategy as its target market caters to
narrow buyer segment i.e. retail consumer market and its current strategic approach falls
under differentiation product tactic with unique proprietary features and design patterns.
Moreover, Alkaram has also competitive rim over its cost in operations and management of
resources, which is seemingly visible in its low priced products although quality remained
as good as any other competitor in textile industry.
Thus, Alkarams current strategy comes under product differentiation targeted to narrow
consumer base along with cost competent standing. However, this cost efficiency makes it
low cost leader in the focused differentiation quadrant, eventually giving it cost
competitive edge in textile production and retailing industry.
Pros of Focused Differentiation

Possibility of gaining higher market share in chosen segments by offering a diversified
bunch of products
Allows specialization in the chosen segments
Allows streamlining of costs
Increased credibility among opinion leaders (designers)

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EFE MATRIX
CRITICAL SUCCESS FACTORS WEIGHT RATING WEIGHTED
SCORE
OPPORTUNITIES
Pak has 16.98 million population with a growth rate of 0.07 3 0.21
2.69% including more than 65% women
Implementation of the textile education and fruitful 0.05 1 0.05
policies by government over the last decade.
Prospect of export of readymade garment and 0.15 4 0.60
menswear segment being it untapped.
Cheap labor and domestic raw material available 0.10 3 0.30
Growing popularity of knitting industry in all over the 0.06 2 0.12
world
More participation in international clothing exhibitions 0.15 2 0.30
like Hetrimax etc.
THREATS
Production cost of textile mills has risen due to the 0.02 2 0.04
increasing interest rate
Low R&D in the cotton sector resulted in low quality of 0.07 3 0.21
cotton in comparison to rest of Asia
Tough competition from India, China in value-added 0.13 4 0.52
textiles & garments products especially in export
market.
Due to load-shedding, textile production capacity of 0.08 3 0.24
various sub-sectors has been reduced by more than
30% annually.
Intense seasonal demand variability in the market with 0.12 3 0.36
changing customer preferences
TOTAL 1 2.95
The EFE score is 2.95 which is a little above average score, indicates that Alkaram isnt
taking full edged advantage of its opportunities and not minimizing the threats in an
efficient manner. It is just doing it in an average way. However, Alkaram can increase its
revenue and market share by utilizing the opportunities and minimizing the threats. It can
take advantage of the growing market share, growing population, can acquire local
companies and can do expansion into other areas. On the other hand, it can minimize the
threats such as the counterfeiting of medicines and can increase its revenues.

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CPM MATRIX
Critical Success Weight Rating Weighted Rating Weighted Rating Weighted Rating Weighted
Factors Score Score Score Score
Advertising 0.10 3 0.30 2 0.20 4 0.40 1 0.10

R&D 0.03 1 0.03 2 0.06 2 0.06 3 0.09
Product Quality 0.15 3 0.45 3 0.45 3 0.45 2 0.30
Price 0.05 4 0.20 2 0.10 2 0.10 2 0.10
Competitiveness
Management 0.02 2 0.04 2 0.04 1 0.02 2 0.04
Financial 0.15 3 0.45 3 0.45 3 0.45 4 0.60
Position
Customer 0.10 3 0.30 4 0.40 2 0.20 2 0.20
Loyalty
Global 0.12 2 0.24 1 0.12 2 0.24 3 0.36
Expansion
Market Share 0.20 3 0.60 4 0.80 2 0.40 1 0.20
E-Commerce 0.08 4 0.32 2 0.16 3 0.24 1 0.08
1 2.93 3.14 2.56 2.88
ANALYSIS:
Alkaram textile is dominating in industry over many local competitors including Nishat
textile limited and lucky textile mills, however followed by Gulahmed in the textile industry
in terms of overall rating indicated by the competitive matrix, by securing 2.93 weighted
score. Thus CPM score shows aggressiveness of Alkaram in this industry over most of its
competitors.
Moreover, Alkaram has highest price competitiveness over all its rivals along with good
promotional tactics. Also, its online commerce is also its best feature all over the industry,
supported by convincing customer loyalty and compelling market share capturing.
Furthermore, Alkaram has also pretty strong standing in the financial position in the textile
industry along with fine product quality giving an edge over its competitors. However, the
main factors where it lacks to gain competitive perimeter includes: low investment in
research and development as well as technological up gradation, little less efforts in global
expansion and also disgruntled management system because of undeniably influencing
Seth culture with the unit.

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INTERNAL
ANALYSIS

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VALUE CHAIN
SUPPORT ACTIVITIES:
Firm Infrastructure
Al-Karam is constructed area of over one million square feet; Al-Karam has the capacity to
fulfill small, medium and large scale orders. It has warehouses for 10 different categories
(including dyes warehouse, chemical warehouse, stitching warehouse, lubricants
warehouse). Al-Karam ensures safety for its workers and provides employees with safe and
healthy workplace in compliance with all applicable laws and regulations, ensuring fire
safety, adequate lighting and ventilation. For ensuring fire safety, Al-Karam has fully
equipped fire fighting department with fire alarms and extinguishers installed in every
single room. Theres also an extension in processing unit in order to raise the efficiency of
processing department.
Human Resource Management

Al-Karam ensures to pay workers compensation required by law and provides all legally
mandated benefits to encourage worker creativity and productivity. Al-Karam beliefs in:
Respect to Human, transparency and teamwork. At al-Karam, theres highly experienced,
qualified and professional staff (which includes FCAs, CAs). The head of the department
also appoints a mentor for the new hires who gives orientation and class room training to
the new ones
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Technology
Al-Karam invests a lot in technology that allows al-karam to consistently produce highly
differentiated products. Alkaram creative center is equipped with state of the art designing
and sampling equipment. The management of Al-Karam follows the policy of re-investing
in technology. It is expanding its state-of-the-are production process unit. Al-Karam
Textiles have imported the latest machinery from Europe. Their machinery comprises of
equipment used in spinning and weaving. They use the latest type of loom, called the
shuttle-fewer looms in their operations which is the latest technology and which is capable
of producing a very high thread count rate, in the range of 100 threads per sq inch (the
normal is 30-40). Therefore, their products are capable of meeting international standards
of weaving, dyeing and printing, for example using dyes that do not irritate the skin. This is
being done to get a competitive edge over rival firms so that when the WTO promulgates
free economy in the whole world, Al-Karam will have no problem in competing with
international competitors. Al-Karam has a policy of continuously upgrading its machines to
remain among the most modern and efficient textile mills in the country.
Procurement
As Al-Karam is an ISO Certified company so it relies on the best and high quality raw
materials in order to meet the expectations of its buyers (including Walmart, IKEA) and to
maintain its standard. Al-Karam also emphasizes on purchasing high quality replacement
parts for its state-of-the-art machinery.
PRIMARY ACTIVITIES:
Inbound Logistics
Al-Karam has alliances with best suppliers of raw materials in order to maintain the
standard and quality of its products. Al-Karam has preservation system for the handling of
raw materials in order to minimize the damage and for maintaining the quality of the
products.
Operations
Al-Karam ensures that its products never stay far from its goal. From the first step of
operations, the creation of fibers via spinning, down to the last, of stitching the finished
fabric, products are constantly checked to ensure they end up exactly how Al-Karams
customers want them. Each step is carefully planned. Al-Karam has a fully integrated
services facility that uses the latest technology across all parts of the products' voyage. Al-
Karam allows its customers to get the products according to their requirement.
Outbound Logistics
Al-Karam has responsive order processing procedures. It ensures deliveries of products to
its customers on time and rapidly. It has warehouses for 10 different categories (including
dyes warehouse, chemical warehouse, stitching warehouse, lubricants warehouse). Al-
Karam has its own different retail outlets namely Alkaram studio, Baby shop. It has outlets
in different cities of Pakistan. There are 2 outlets in Islamabad, 5 in Lahore, Karachi has 3
outlets and in Faisalabad, they are planning to open an outlet very soon.

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Marketing and Sales

Al-Karam takes part in international exhibitions where Al-Karam places its stall to attract
customers from different countries. e.g. Heimtex is a very famous international exhibition
for textiles .This exhibition took place every year and Al-Karam sent a representative or
marketing managers and some other personnel to manage their stall in the exhibitions and
show the products properly. It is a culture in export marketing/sales department of Al-
Karam that every salesperson or merchandiser must dress up formally. Because they do
meetings with managers from other organizations (for example Supplier, buyer, middle-
men etc). So the dressing of sales person gives impression about the company especially in
B2B selling. In case of home textile exports of Al-Karam, the sales person uses target
market techniques for different buyers. For example IKEA and WAL-MART are its two big
customers; they present different products according to the needs of each of them. If a
specific buyer demands development of new product and gives specifications and design
for the product, the sales person communicates it to the company and then the procedure
of development for the new product is followed. The marketing/sales department of Al-
Karam is working with merchandisers who perform the sales function. The company has
its own sales force that is involved in the selling function. The company didnt out source its
selling function. Al-Karam textiles have divided the export marketing department into
different markets as per countries or buyers to which it caters. The number of senior and
junior merchandisers is assigned to each market according to the size of market. And the
sales team in each market will use strategies according to the needs of its specific
customers.
Service
Al-Karam is committed to provide a safe and healthy environment for its employees,
customers and visitors. Al-Karam invests in educating rural and urban communities.

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CORE COMPETENCY OF ALKARAM

A core competence is the result of a specific unique set of skills or production techniques
that deliver value to the customer. Such competencies empower an organization to access a
wide variety of markets. Executives should estimate the future challenges and
opportunities of the business in order to stay on top of the game in varying situations. . A
core competence should be "competitively unique".
Home Textiles Products and Fashion Garments

Home Textiles products market is very vast and it has lot of players in it. Al-Karam mainly
exports all of its home textile products to different countries. As the exports of home
textiles is flourishing from past few years. So the company is gaining advantage by
acquiring new customers from different markets and the main players of home textiles in
Karachi are YTM, Al-ABID etc. Al-Karam is making following home textile articles:
Kitchen wear
Windows
Bed linen
Jersey Knits for home textiles
Bed in a bag
Room in a bag
The annual sale of Home Textiles (exports) by A-Karam is about $100 million. And the
following table shows the share of different markets of Al-Karam:
COUNTRIES TURNOVER (%)

Spain 2
Germany 4
U.K 2
France 8
U.S.A 35
Sweden 40
Others 9
Yard Dyed Home Textiles

Al-Karam Textile Mills is the largest yarn dyed manufacturer in Pakistan. There are only
few manufacturers of yarn dyed in Pakistan. Al-Karam Textile Mills export high quality
yarn dyed home textiles like curtains, kitchen linen.
Yarn Dyeing Capabilities:
- Capacity of 18 tons per day.
- All machines are air-packed.
- One-time dyeing capacity ranges from 2 lbs - 4000 lbs
Branded Customers
Al-Karam Textile Mills sales are largely based on exports. Its sales accounted for 85%-90%
of exports. Al-Karam Textile Mills have got branded customers namely IKEA, Wal-Mart,
Tommy Hilfiger, Calvin Klein, Ralph Lauren etc. Al-Karam also provides its customers with
complete in-house design solutions .Al-Karams creative center is equipped with state of
the art designing and sampling equipment and skilled textile artists.
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One Floor Operations

Al-Karam Textile Mills has got one floor operations. Its operation process includes from
spinning, weaving, yarn dyeing, wet processing/finishing, cuttting and stitching to retail
and distribution. The cotton enters the mill as raw material and it gets out of the mill as a
product like bed linen, fashion apparel etc.
More than 10,000 labor force

Al-Karam Textiles employs about 10,000 workers, who work in three shifts of eight hours
each throughout the day. They are very motivated because they are paid better than other
people in textile mills, and they like the atmosphere of working at Al-Karam. There is
alabor union in AlKaram Textiles, but relationships between the union and the
management is amicable and not acrimonious. The best indication of the amicable
relationship is that that there has been not a single strike at Al-Karma Textiles since its
inception.
STRATEGIC COST PROCESS MANAGEMENT

Oracle Financial ERP Business Suite 12i
Al-Karam Textile Mills has updated its cost management system. According to Mr. Shahzad
Ali Sayed, Al-Karam Textile Mills have adopted Oracle financial ERP business suite 12i. This
required extensive off shoring to their key users. It is an integrated financial accounting
system in which everything is incorporated from top to bottom. This is the most
sophisticated and latest system and it is perfect for manufacturing companies.
FINANCIAL RATIO TRENDS

Mr. Aijaz Hussain, Manager Accounts of Al-Karam Textile Mills and Mr. Attique-ur-Rehman,
Manager Internal Audit did not disclose much information regarding financial position of
company as Al-Karam Textile Mills is a private limited company and the financial results
are not available for general public. But, Mr. Attique-ur-Rehman gave an overview of Al-
Karam Textile Mills financial position.
According to Mr. Attique-ur-Rehman, Al-Karam Textile Mills grow by 10%-15% per year,
sales turnover is around 35%-40%. Al-karam seems to be in a better financial standing as
compare to its efficiency. The company has alower turnover ratio for both, the assets and
the inventory showing high amount of sales and effectiveness. Al-Karam has been rising in
its profitability continuously, showing improvementsin return on net worth and return on
total assets. The company is funded both by debt and equity.

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IFE MATRIX
CRITICAL SUCCESS FACTORS WEIGHT RATING WT. SCORE
STRENGTHS
State-of-the-art equipment 0.08 2 0.16
Strong brand awareness in target market 0.15 3 0.45
Diversified product portfolio with Home textile products 0.10 4 0.40
and fashion garments
More than 10000 labor force of young & energetic work 0.07 1 0.07
force plus efficient designers
ISO certification for Alkaram products and processes 0.10 2 0.20
Self-owned power generation system 0.03 2 0.06
Strategic partnership with designers like Umer Saeed to 0.05 4 0.20
bring ready to wear garments segment within the existing
women lawn portfolio
Yarn dyed home textiles (therere very few manufacturers 0.05 3 0.15
of Yard dyed home textiles in Pakistan)
One floor operation (when cotton enters as raw materials 0.03 2 0.06
and it exits from the mill as bed linen, fashion apparel etc)
Branded customers like IKEA, Wal-Mart 85%-90% sales 0.10 4 0.40
comes from export
WEAKNESSES
Weak R&D facilities 0.10 2 0.20
Lack of HR training & development 0.05 1 0.05
Weak Information Systems 0.03 2 0.06
Seth culture resulting in discouraging of the mere 0.04 4 0.20
accountability in compensation processes.
Transit time is much more as compared to foreign 0.03 3 0.09
competitor
High reliance on international market for profitability 0.04 3 0.12
TOTAL 1 2.29
The IFE score of Alkaram is 2.29 which show that it is utilizing its strengths and reducing
its weaknesses in a sub-standard way. However, it should capitalize on its strength of
efficient field force and utilize the strong R&D to increase its market share and revenues.
Alkaram can also utilize its alliances with well known designers to increase its revenues.
Moreover, the rate of R&D at Alkaram is very low. Mostly, the sales are coming from its old
brand names. Therefore, it should do new product launches to increase its market share.
Alkaram has recently acquired strategic partnership with Umar Saeed, and is launching
ready to wear garment segment in few months by mid summers, which is rather a good
sign. Also, it should increase its marketing activities locally as well as create more customer
awareness through e-commerce in export business. The turnover rate needs to be reduced
at Alkaram.

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STRATEGIC
ANALYSIS &
CHOICE

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GRAND STRATEGY MATRIX
INTERPRETATION
The grand matrix of ALKARAM falls in the 4th quadrant. This mix proposes the following
strategies to be undertake by Alkaram:
Market Development: It can improve on its market share by targeting areas that were not
targeted previously e.g. children or menswear or ready to wear segment.
Market Penetration: It can focus on seasonal products only to penetrate more into the
consumer market e.g targeting gigantic retail outlets more shelf space. Also they can grab
more of local market through good advertising. Plus export market is needed to be
captured more through customer awareness by efficient use of online catalogue and more
work into e-commerce.
Backward Integration: they can acquire yarn manufacturing houses with good quality
thread production to counter fluctuating cotton cropping & gain more control on suppliers.
Forward Integration: more retail stores can also be built within the city in crowded areas as
well as all around the Pakistan by extending to major cities like Lahore, Faisalabad, and
Peshawar.

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SPACE MATRIX
INTERNAL STRATEGIC POSITION EXTERNAL STRATEGIC POSITION

Financial Strength Environmental Stability
Return on Investment 3 Rate of inflation -4

Leverage 2 Demand variability -6
Liquidity 2 Barriers to entry -4
Cash flow 4 Competitive pressures -5
Inventory turnover 4 Ease of exit from Market -3
Gross profit 5 Price range of competing -3
products
Price elasticity of demand -1
Average Score 3.33 Average Score -3.71
Competitive Advantage Industry Strength
Market share -2 Growth potential 6

Product quality -1 Profit potential 4
Customer loyalty -2 Financial stability 5
Product life cycle -2 Resource utilization 3
Control over suppliers -1 Ease of entry into market 2
Average Score -1.6 Average Score 4.0
Y - Axis: X - Axis:
Financial Strength 3.33 Competitive Advantage -1.6
Environmental Stability -3.71 Industry Strength 4.02
TOTAL -0.38 TOTAL 2.40

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Analysis:
Alkaram falls at (+2.4,-0.8) points in the above template which indicates that it has pretty
good competitive advantages in a moderately growing industry. Thus, following are the
strategies to be pursued by Alkaram textiles;
Backward Integration: Alkaram textiles mills may acquire cotton crop farms to have its own
high quality cotton buds production and picking. Moreover it may have its thread/yarn
manufacturing houses.
Market Penetration: It can improve on its consumer market share by reaching consumers
moreover through e-commerce by providing online catalogue marketing to its targeted
customers; and also improving on their existing exporting services through more product
awareness at international scale.
Market Development: They can target new local markets in the menswear segment since
theres less competition and foreseen projected incline in demand in this segment. It may
also reach to unexploited international consumer markets like Far East & Europe areas in
order to increase their market share.
Product Development: It can develop menswear product segment such as mens seasonal
clothing etc. to capture their untapped market.

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TOWS MATRIX
STRENGTHS (S) WEAKNESSES (W)
1. State-of-the-art equipment 1. Weak R&D facilities
2. Strong brand awareness in target market 2. Lack of HR training & development
3. Diversified product portfolio with low 3. Weak Information Systems
competitive prices than rivals 4. Seth culture resulting in discouraging
4. Young, highly motivated and energetic of the mere accountability in
work force plus efficient designers compensation processes.
5. ISO certification for products & processes 5. Transit time is more as compared to
6. Self-owned power generation system foreign competitor
7. Strategic partnership with well-known 6. High reliance on international market
designers to bring seasonal garments for profitability
within its existing women product line
8. Branded customers like IKEA, Wal-Mart
85%-90% sales comes from export market
9. One floor operation
10. Yarn dyed home textiles
OPPORTUNITIES (O) THREATS (T)

1. Pak has 16.98 million population with a 1. Production cost of textile mills has
growth rate of 2.69% including more than risen due to increasing interest rate
65% women 2. Low R&D in cotton sector resulted in
2. Implementation of the textile education low quality of cotton than rest of Asia
and fruitful policies by government over 3. Tough competition from India, China in
the last decade. value-added textiles and garments
3. Prospect of export of readymade garment products especially in export market.
and menswear segment being it untapped. 4. Due to high load-shedding, textile
4. Cheap labor and domestically available production capacity of various sub-
raw material resources sectors has been reduced by more than
5. Growing popularity of knitting industry all 30% annually.
over the world 5. Intense seasonal demand variability in
6. More participation in international the market with changing customer
clothing exhibitions like Hetrimax etc to preferences
bring in customer awareness abroad.

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S-O STRATEGIES W-0 STRATEGIES

Leverage the opportunity existing due to More investment in R&D leading to new
increasing population by adding the & differentiated design patterns, not
category for mens wear (S3, S5,O1) already existing in market, to gain
Promotional activities to attract more competitive advantage over competitors
branded customers in export market in in response to continuously changing
order to increase market share of e- customer preferences (W1,O1,O2)
commerce through participation in To step into more constructive &
international clothing exhibitions held participative culture to gain advantage of
worldwide. (S8, O6) cheap and abundant supply of Pakistani
Introduce ready to wear garment for the labor by turning seth management
existing potential female clientele base system into organized & equitable
through strategic partnership with well environment resulting in increased
know designers. (S5, S7, O1,O3) employee productivity. (W4, O4)
S-T STRATEGIES W-T STRATEGIES

There is projected decline in profitability
due to low price set than competitors for
similar products, coupled with inclining
production cost as result of inflation &
operation cost ad-ons. (S3,T1,T4)

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INTERNAL EXTERNAL MATRIX
IFE total weighted score = 2.29

EFE total weighted score = 2.95
Analysis:
Alkaram falls under quadrant 5, keeping in mind total weighted scores of both IFE and EFE
matrices, which indicates Hold and Maintain Strategies to be followed in the best interest of
its future growth. Thus, under this following approach is best for alkaram to pursue;
Market Penetration: It can improve on its consumer market share by reaching consumers
moreover through e-commerce by providing online catalogue marketing to its targeted
customers; and also improving on their existing exporting services through more product
awareness at international scale.
Product Development: It can develop menswear product segment such as mens seasonal
clothing etc. to capture their untapped market.

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BCG MATRIX
Alkaram is positioned in quadrant III that is called cash cow, which represents having
relatively good market share standing but competing in low growth industry. It enjoys a
soaring relative market share due to its unique product designs available at competitively
low price but widely distributed at all retail outlets. Furthermore, the industry is
unfortunately suffering from the slow growth rate because of high demand variability and
fast changes in product life cycle, hence making it little less attractive for the industry.
Falling in the cash cow quadrant, the strategies that could be adopted are as follows:
Product development
Diversification
Retrenchment
divestiture
Among these, being a strong cash cow, alkaram should go for the following tactic;
Product development: by bringing in menswear segment for local customers or may be by

using strategic partnership with designers like umer saeed it can introduce ready to wear
garments for existing potential female customers.
Diversification: alkaram can enter into curtain and bedcover manufacturing; it can also step
into customize tailoring based on customer choice or consumer ad-ons.

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STRATEGIC
DECISION &
RECOMMENDATION

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MATRIX ANALYSIS AND SUMMARY

ALTERNATIVE IE SPACE BCG GRAND COUNT
STRATEGIES
Forward Integration X 1
Backward Integration X 1
Horizontal Integration X 1
Market Penetration X X X 3
Market Development X X 2
Product Development X X X X 4
Concentric Diversification X 1
Conglomerate 0
Diversification
Horizontal Diversification X X 2
Joint Venture 0
Retrenchment X 2
Divestiture X X 2
Liquidation 0
Thus, above analysis of all the matrices indication the following two strategies to be
pursued for quantitative strategic planning matrix in order to extract best strategy under
strategic decision of Alkaram textile mills;
Product development: by bringing in menswear segment for local customers or may be by

using strategic partnership with designers like Umer saeed, Deepak Perwani or Asim jofa
etc, it can introduce ready to wear garments for existing potential female customers.
Market Penetration: It can focus on seasonal products only to penetrate more into the
consumer market for instance, targeting gigantic retail outlets more shelf space. Also they
can grab more of local market through good advertising. Plus export market is needed to be
captured more through customer awareness by efficient use of online catalogue and more
work into e-commerce.

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QSPM
STRATEGIC ALTERNATIVES
CRITICAL SUCCESS FACTORS WEIGHT Market Product
Penetration Development
STRENGTHS AS TAS AS TAS
State-of-the-art equipment 0.08 ---- ---- ---- ----
Strong brand awareness in target market 0.15 4 0.60 3 0.45
Diversified product portfolio with Home textile 0.10 3 0.30 4 0.40
products and fashion garments
More than 10000 labor force of young & 0.07 2 0.14 2 0.14
energetic work force plus efficient designers
ISO certification for products & processes 0.10 2 0.20 3 0.30
Self-owned power generation system 0.03 1 2
Strategic partnership with designers like Umer 0.05 3 0.15 4 0.20
Saeed to bring ready to wear garments segment
within the existing women lawn portfolio
Yarn dyed home textiles 0.05 ---- ---- ---- ----
One floor operation 0.03 ---- ---- ---- ----
Branded customers like IKEA, Wal-Mart 85%- 0.10 3 0.30 2 0.20
90% sales comes from export market
WEAKNESSES
Weak R&D facilities 0.10 2 0.20 4 0.40
Lack of HR training & development 0.05 ---- ---- ---- ----
Weak Information Systems 0.03 ---- ---- ---- ----
Seth culture resulting in discouraging of the 0.05 ---- ---- ---- ----
mere accountability in compensation processes.
Transit time more than foreign competitor 0.08 2 0.16 3 0.24
High reliance on international market profit 0.07 3 0.21 2 0.14
SUBTOTAL 1.00 2.26 2.47
CRITICAL SUCCESS FACTORS WEIGHT Market Product

Penetration Development
OPPORTUNITIES AS TAS AS TAS
Pak has 16.98 million population with a growth 0.07 4 0.28 4 0.28
rate of 2.69% including more than 65% women
Implementation of the textile education & fruitful 0.05 ---- ---- ---- ----
policies by government over the last decade.
Prospect of export of readymade garment and 0.15 2 0.30 4 0.60
menswear segment being it untapped.
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Cheap labor & domestic raw material available 0.10 ---- ---- ---- ----
Growing popularity of knitting industry 0.06 ---- ---- ---- ----
More participation in international clothing 0.15 3 0.45 1 0.15
exhibitions like Hetrimax etc.
THREATS
Production cost of textile mills has risen due to 0.02 ---- ---- ---- ----
the increasing interest rate
Low R&D in the cotton sector resulted in low 0.07 1 0.07 2 0.14
quality of cotton in comparison to rest of Asia
Tough competition from India, China in value- 0.13 3 0.39 3 0.39
added textiles and garments products especially
in export market.
Due to load-shedding, textile production capacity 0.08 ---- ---- ---- ----
of various sub-sectors has been reduced by more
than 30% annually.
Intense seasonal demand variability in the 0.12 ---- ---- ---- ----
market with changing customer preferences
SUB TOTAL 1.00 1.49 1.56

TOTAL SCORES 3.75 4.03
Analysis:
Strategy 1 - market penetration (Targeting export markets through using e-commerce, by
promotion of e-catalogue locally as well as internationally)
Strategy 2 - product development (alkaram may have strategic partnership with well known
designers to step into ready to wear garments)
Hence, the two strategies i.e. Market Penetration and Product Development are evaluated
through QSPM matrix. The total attractiveness scores of Market Penetration and Product
Development are 4.95 and 4.55 respectively. Since 3.75<4.03 therefore, product
development would be the most suitable strategy for Alkaram.
Thus, with strong finances and equity Alkaram can acquire local companies, and with
strong R&D & qualified designers and professionals it can do product development. This
strategy is already been started by creating strategic partnership with Umer Saeed a well
known designer and Alkaram is now going to introduce ready to wear garment from
coming summer for the existing potential female clientele base.

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STATEGIC
IMPLEMENTATION

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STRATEGIC LEADERSHIP MODEL FOR AL-KARAM TEXTILE MILLS

RESOURCES STRUCTURE CULTURE
State-of-the-art production Al-Karam has a separate Al-Karam encourages training
plants division for strategic planning & learning for its technical staff
It has sophisticated process It has a divisional structure It recognizes & respects right of
management system Oracle with an HOD of every division workers to exercise lawful
ERP rights of free association.
Highly motivated and young The goals of organization are It considers opinions of its
workforce of 10,000 people communicated clearly across employees and take consensus
the organization on different issues
Enhancing production capacity
in order to take more orders
Own retail outlets in different
cities of Pakistan
THE FOUR HURDLES TO STRATEGY IMPLEMENTATION
Resource Hurdles
Al-Karam is a company of around 10,000 workers & around 2,500 staff, it is growing 10-
15% every year, sales turnover is around 35-40%, it has skilled labor. However, it faces no
such hurdle in strategy implementation & manages assets without problem in allocation.
Cognitive Hurdles
Al-Karam considers its employees as an important part of the company. Everyone in the
company knows about organizational goals. Al-Karam also encourages cross-functional
teams to get the feedback from employees and to educate them about the strategy of the
company. So, theres no cognitive hurdle when it comes to strategy implementation.
Motivational Hurdles
Alkaram focuses on keeping highly qualified, young and talented workforce. It ensures safe
& healthy workplace for its employees in compliance with all applicable laws and
regulations, ensuring fire safety, adequate lighting and ventilation. It also provides
incentives, bonuses, health insurance to its employees which shows importance which it
gives in keeping employees motivated. It also provides technical training program for
technical staff when new machine enters Alkaram. The technical staff goes to that country
from where it has imported that machinery. Training programs along with reward
programs support it in strategy implementation. As result, theres no dis-motivation.
Political Hurdles
Political instability badly hampers the production process in form of deteriorating law &
order situation, resulting in frequent strikes & ultimately closure of businesses which
causes huge loss per day. In addition to it, inflation is rising which has resulted in high cost
of production & lesser profit margins. It is effectively handling these political hurdles, but
these hurdles are out of their control which causes problems in implementation of strategy.

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BALANCED BUSINESS SCORECARD

Framework for balanced business scorecard:
Matrix for Balanced Business Scorecard:
Financial perspective:
As AlKaram is not a listed company, its financial objective does not include maximizing
share price for shareholders. However, it does owe profits to its stakeholders to keep them
positively engaged in the company. Knowing the increasing number of competitors coming
in each year, it is extremely important for AlKaram to relate its value to the customers to
keep them brand loyal. This would help them in increasing revenues. On the other hand,
frequently motivating and compensating employees to make them feel obliged to be
productive for the firm could control costs.
Customer perspective:
Retaining customers is a highly difficult task especially in such a competitive industry
where switching costs arent too high. The buying power to customers is high because
there are so many other alternatives for them. To keep customers loyal to you, giving them
pre & post service is also necessary because this would make them feel important. AlKaram
could come up with a huge design magazine to attract customers before launch. However,
during the launch designers could be available at outlets to give an idea of how a dress
could be stitched. Customers may be provided with several designs to choose from. Once
the sale has been done, AlKaram can make them fill a comment card, contact them asking
about their service and if the product was suitable to their requirement. Also, to come up
with innovative products that are customer oriented keep customers glued to firm.
Internal perspective:
It is really necessary for a firm to be strong internally in order to keep a strong image
externally. Its a fact that if firms employees arent happy, their customers wont be happy
either because bad image spreads like wildfire. Therefore, it is important for the operations
to be well equipped, relations to be strong, continuous growth to exist and a well-built
image in the society.
Learning & Development perspective:

Whether an employee has been working since long or is newly recruited, building their
competencies is essential because these are crucial to organizations. They are paid for their
area of specialization and they are ought to be polished accordingly. This would even help
the organization to retain them easily. The firm should basically promote a building culture
along with teamwork in order to let other employees fill in the weaknesses of their

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colleagues. Also, this would help in sharing knowledge, expertise and advices amongst
employees which would help a few less productive ones improve themselves.
DIAGNOSTIC SURVEY OF PRIMARY & SECONDARY

MANAGEMENT PRACTICES
STRATEGY Inferior Average Superior

1 2 3 4 5
It has clearly articulated & widely understood strategy X
It has strong external antennae & quickly anticipates external X
shocks, emerging opportunities & downturns.
It has very good understanding of its competitors & can X
anticipate competitors moves.
It is focused on extending/improving its core business & is X
committed to growing them aggressively.
Subtotal of Strategy score: 11
EXECUTION Inferior Average Superior

1 2 3 4 5
Its products consistently meet customer expectations X
It consistently improves employee productivity. X
Its programs/initiatives always get desired outcomes. X
Its IT systems enhance ability to execute value prop. X
Subtotal of Execution score: 8
CULTURE Inferior Average Superior

1 2 3 4 5
It sets demanding performance standards for all its employees. X
The company consistently raises performance bar. X
The companys culture is exciting, engaging, and fun X
It has clear values that people in the company abide by. X
Subtotal of Culture score: 6
ORGANIZATIONAL STRUCTURE Inferior Average Superior

1 2 3 4 5
The company makes decisions quickly. X
The company minimizes bureaucracy. X
The companys business processes are simple. X
Company effectively cooperates across organization. X

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Subtotal of organizational structure score: 9
TALENT Inferior Average Superior

1 2 3 4 5
It has great talent & bench strength at each position X
The company successfully develops talent. X
It design jobs to intrigue / challenge talented employees X
The companys senior management is personally involved in X
recruiting and developing talent.
Subtotal of talent score: 6
MERGERS & ACQUISITIONS Inferior Average Superior

1 2 3 4 5
Company consistently identifies good M&A possibilities X
Company rarely overpays for mergers & acquisitions. X
The company is consistently better than its competitors at X
integrating mergers and acquisitions.
The companys mergers and acquisitions achieve most of their X
projected cost and revenue benefits.
Subtotal of M&A score: 10
INNOVATION CAPABILITY Inferior Average Superior

1 2 3 4 5
It is continually transforming or reshaping its industry X
Its products/devices/innovations are better than rivals X
It doesnt hesitate to cannibalize its existing business(s) X
People with new-ideas are respected & enjoy high status X
Subtotal of Innovation score: 13
TOTAL SCORE: 63
INTERPRTATION:
The above result indicates that Alkaram is performing well in some areas but it is behind it
competitors when it comes to innovation and research. This needs to be improved, through
deeper penetration in the existing consumer market. Another area where they are lacking
is their culture. The current Seth culture does not promote modernization and also it
suffocating new ideas and breakthrough thinking which is basic required for growth and
stability. Thus, upgrading need to be introduced in the culture, to motivate the employees
to perform efficiently.

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ALKARAM IN BLUE
OCEAN STRATEGY

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Companies for ages have been engaged in head-to-head competition to have sustained,
profitable growth by for competitive advantage, highest market share, and above all for
differentiation. Yet in todays overcrowded industries going head on head with competitor
and resulting in Red Ocean, a strategy which is increasingly unlikely to create profitable
growth in future. By creating blue oceans of uncontested market, company can ripe
growth by value innovation that is increase value for both the firm and its buyers, making
rivals obsolete and creating new demand. Blue ocean strategy is all about making the
competition irrelevant and creating uncontested market by creating value & demand break
value and cost trade off. Blue Ocean Strategy charts a bold new path to winning the future
by turning over traditional thinking.
Following are the six principles that every company has to work on successfully to
formulate and execute blue ocean strategies.
o Reconstruct market boundaries:- Alkaram needs to look around for and define new
markets that have potential gaps to enter, grow and earn profits. When doing so they
cannot they cannot dissatisfy their current customer market so they have to trade them
along by keeping view of the benefits that keep them stick to alkaram. AlKaram also
required to continuously improve against the potential competitors
o Focus on the big picture:- Alkaram has to keep a broader picture in mind and analyze
thoroughly what is best for them. They should first analyze the structural conditions in
which its operating, its resources and capabilities and its strategic mindset.
o Reach beyond existing demand:- Alkaram should be well assured before implementing
blue oceans that it should lead it to higher demand and better profits.
o Get the strategic sequence right:- implement steps efficiently
o Overcome organizational hurdles:- It should solve all its internal issues first
o Build execution into strategy:- alkaram needs to formulate strategy which aligns with
its competencies and capabilities.
In order to do so Alkaram textiles needs to do a thorough internal and external analysis,

look into the environment its currently operating in and also evaluate its current strategy.
Implementation of Blue Ocean Strategy in Alkaram should deliver:-

Value proposition: This is the most important aspect for implementation of blue ocean
strategy. It suggests that the buyer benefit should be the first priority. Thus the value
should be strategically priced. Currently people are delivered value by Al karam by getting
good quality fabric and colours by paying prices that are reasonable and lower than some
competitiors.
Profit proposition: Strategic price minus desired profits is target cost. Yet if the price does
not meet the expectations of the customers, volume market cannot be created. However, if
strategic price is used to set the sales price, this will attract more customers. Thus the fact
that Al karam textiles charges comparatively lesser prices on good quality cloth cannot be
overlooked. The state of art equipment that they use and further that they are importing
helps them to lower the cost of production.
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People proposition: Al karam is a firm which employees almost 10,000 labor force which is
highly motivated because it is paid more. Thus Al karam need to maintain this conformity
with its workforce and assist them to the change that will come with blue ocean and
encourage them by informing that success is waiting in the end.
ERRC GRID FOR ALKARAM:
Eliminate:- Reduce:- Raise:- Create:-

Saith culture Errors in E-commerce New categories
Energy issues information Market Share International
Piracy of communication Quality markets
designs system R&D Integrate
Delays in supply Strategic backwards
of raw material alliances Good working
Thread count culture
REFERENCES:
Pakistan Economic Survey 2010-11
http://www.alkarameurope.com/
www.alkaram.com
Karachi stock exchange
Harvard business articles

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AL-KARAM TEXTILE PVT LTD

INSTITUTE OF BUSINESS MANAGEMENT

Researching Firm level Strategy and

April 16, 2012

Enterprise/Corporation/Institute: Alkaram textile private limited

Name and rank of research partners:

Name of IoBM researchers:

IoBM STRATEGIC MANAGEMENT 1|Page

IoBM STRATEGIC MANAGEMENT 2|Page

PRIMARY ACTIVITIES: ................................................................................................................................ 29

IoBM STRATEGIC MANAGEMENT 3|Page

Financial perspective: ............................................................................................................................. 48

IoBM STRATEGIC MANAGEMENT 4|Page

IoBM STRATEGIC MANAGEMENT 5|Page

April 16, 2012

Mr. Javaid Ahmed

IoBM STRATEGIC MANAGEMENT 6|Page

IoBM STRATEGIC MANAGEMENT 7|Page

OVERVIEW OF TEXTILE INDUSTRY IN PAKISTAN

TEXTILE INDUSTRY'S ECONOMIC CONTRIBUTION 2008-09

IoBM STRATEGIC MANAGEMENT 8|Page

Lack of Research & Development (R&D) in Cotton Sector

IoBM STRATEGIC MANAGEMENT 9|Page

IoBM STRATEGIC MANAGEMENT 10 |

IoBM STRATEGIC MANAGEMENT 11 |

We do not intend to simply meet customer but also,

YARN FABRIC FINISHED PRODUCTS

IoBM STRATEGIC MANAGEMENT 13 |

Proposed Mission Statement:

IoBM STRATEGIC MANAGEMENT 14 |

IoBM STRATEGIC MANAGEMENT 15 |

PORTERS FIVE FORCES

THREAT OF NEW ENTRANTS

BARGAINING POWER OF BUYERS

IoBM STRATEGIC MANAGEMENT 17 |

BARGAINING POWER OF SUPPLIERS

D BARGAINING POWER OF SUPPLIERS YES ~ NO

IoBM STRATEGIC MANAGEMENT 18 |

5. I have many potential suppliers.

THREAT OF RIVALRY AMONG EXISTING FIRMS

IoBM STRATEGIC MANAGEMENT 19 |

F Overall Industry Favorable Moderate Un Implications

IoBM STRATEGIC MANAGEMENT 20 |

PEST ANALYSIS ON PORTERS FORCES

IoBM STRATEGIC MANAGEMENT 21 |

BARGAINING POWER OF BUYERS

BARGAINING POWER OF SUPPLIERS

THREAT OF RIVALRY AMONG EXISTING FIRMS

IoBM STRATEGIC MANAGEMENT 23 |

PORTERS GENERIC POSITIONS AND STRATEGY

Pros of Focused Differentiation

IoBM STRATEGIC MANAGEMENT 24 |

IoBM STRATEGIC MANAGEMENT 25 |

Advertising 0.10 3 0.30 2 0.20 4 0.40 1 0.10

IoBM STRATEGIC MANAGEMENT 26 |

IoBM STRATEGIC MANAGEMENT 27 |

Human Resource Management

IoBM STRATEGIC MANAGEMENT 29 |

Marketing and Sales

IoBM STRATEGIC MANAGEMENT 30 |

CORE COMPETENCY OF ALKARAM

Home Textiles Products and Fashion Garments