Strategy Roadmap for Orange
Overview
This paper discusses the operational issues of a possible apparel retailing chain that operates in India and Pakistan and is looking to expand beyond.
Operations
Orange had a very successful Eid season in Bombay, but less so in Pakistan. There are several issues on our plate that need to be addressed:
? Open the restaurant and hair salon in Defence Z-block. These are important since they will generate revenue, buzz and traffic for the Z-block shop. One or both of these could be very successful and possibly be more profitable on a square-foot basis than the retail shops. However, they will both require substantial capital injections.
? Improve our marketing efforts in Pakistan to raise awareness of the Orange brand in Pakistan. Many potential buyers are simply unaware of the existence, location and content of our stores.
? Improve our merchandising efforts in Pakistan, in the light of lessons learned in Karachi and Lahore. We need to fix problems with wrong sizes, inadequate variety and too-slow turnover of garments on the shelf. Better interaction with Bombay manufacturing is very important.
? Work on our operational processes which are very basic right now. The IT systems are not connected, there is no stock-count or inventory control process, nationwide financial reporting is not in place
? Reconfigure and train the sales force. In Karachi the sales force need to be replaced. In all Pakistan stores, the sales force needs to be trained and have specific assignments. A process for tagging and stock-take needs to be implemented.
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