Assignment 2

Maimoona Bakhtawar
9655

CASE SUDY: Gul Ahmed Textile Mills (Pvt.) Ltd. - Home Textile Division – Strategic Choices
and Alternatives

SUMMARY.

Gul Ahmed Textile LTD is one of the most famous brand in Pakistan and this textile company
has one of the largest firm and household in Pakistan. Gul Ahmed is fully upright integrated
textile unit operating the textile value chain. Gul Ahmed’s most challenging factor is to being in
fashion trend in Pakistan and making their product or designs up to date. This textile entered the
retail industry with its flagship store ‘Ideas by Gul Ahmed’ and today it has the extensive chin of
more the 40 to 50 retail stores across the country and even across the borders. This brand offers a
range of products from home accessories to fashion clothing. Gul Ahmed is basically becoming a
threat of upcoming designers those who are entering into the fashion market. Gul Ahmed not
only spend money on their production but also on training and development. Their major
concerns are the training of the sales staff and their customers management department. It is
difficult for companies to compete and manage the products and their employees at the same
time and Gul Ahmed is one of them. Training of the sales and management staff is very
important, but it has been ignored every year. Fashion and clothing style change very fast.
Market is developing day by day and researchers and development department have shown less
focus on it according to the data. Profit margin is low due to the increasing price of cotton and
price of inputs. Gul Ahmed has been also under the pressure by the energy situation at home
during the last few years which also shows the impact on the margin. Many of their competitors
are working on these aspects that’s how they are eating up the major position in the market.
Their sales growth is not consistent. Rise and fall pattern can be seen in the sales chart. Their
operating expenses are increasing but not the sales. Shoes, bags, ready to wear cloths, unstitch
clothes and home accessories has been major focus for the company which helps in expending
their footprints across the borders. The instable raw material price leading towards the high input
in cost which is making difficult for the company to manage the product cost. The instability in
political has also shaken the confidence in home textile sector which has the large ratio in both
capital and labor intensive. Their home textile industry is not going according to the company’s
expectations because of this reason the company needs to act aggressively. They can use
integrative and intensive strategies horizontal integration, market penetration or market
development.
Assignment 2
Maimoona Bakhtawar
9655