Moderna Textile
Moderna TextileRana HilalGhada SamyAmr ElghorMahmoud AssemMalak
LabibMostafa ElgoharyAbdallah AbedNada HamdyShady Ashraf
Table of contentOverview about Textile industry & Modenra
Problem DefinitionExternal analysis Internal analysis Alternatives
Evaluation and recommendation
Worldwide TextileIndustrial textile originsTextile market
Textile In EgyptEgyptian cultures were among the first to
establish textile productionImportance of textile industry in Egypt
Egyptian cotton
Moderna TextileModerna was founded by elKabbani FamilyModerna
has one central factory and four branchesModernas goal
Problem DefinitionDecember 2009.Action of the Marketing
Director.Marwans native country.Surprising dinner with the
Jordanian ambassadors wife.How did this dinner effected Marwans
plan.
Internal analysis Value chain; Core competence; internal
culture; IFAS
Value chain
Loose Fibers/ Stock Yan manufacturing fabric production
Distribution Own branches-B2B: Luxury hotels- B2C: Its branches4
BranchesTalaat HarbMohandessin MaadiShobraMain
products:UpholsteryCurtainsTextile fabricsSteps:Dying Spinning3)
Warping4) Threading-in5) Weaving6) Quality controlBasic Types
:Natural FibersSynthetic Fibers
Core competenceModerna controls the whole process: Raw material:
Best quality Egyptian CottonProduction process: Fully automated
& advanced machines and experienced labor.Distribution:
Directly to its customer without intermediaries. This forms Moderna
core product : High quality textileDistinctive competency from
competitors.Culture Modernas employees are highly experienced, well
trained and self-motivated.
The staff of is almost 150 employees which has many
benefitsInternal FactorsWeightsRatingWeighted
ScoreCommentsStrengths:Quality0.1040.40Moderna is one of the
largest and leading manufacturers of textiles producing premium
qualityWell understanding of the market0.1740.68The company builds
an experience up to 70 yearsModern equipment used0.1020.20The
factory is equipped with fully automated jacquard but Production
efficiency needs to be improved in order to meet the
competitionReaching customers0.0540.2The company sells directly to
customers through their own retailsKey accounts0.1130.33Few 5 stars
hotelsCompanys Workforce0.1030.30Having 150 well-trained
employeesInternal FactorsWeightRatingWeighted Score
CommentsWeakness:Companys target market0.1520.3Focused on
high-income customers and neglected middle and lower classesCompany
production0.0720.14Neglecting new tastes and preferences and
focusing on classic-quality textile manufacturingCompany
profitability0.1020.20Companys costs are higher and profits are
lower than its competitorsGlobal expansion0.0510.05Market is
limited to EgyptTotal12.8Avoiding Syria !There is real risk of
imitations and trademark violations due to slack copyright laws in
SyriaAny cost-related Strategy wouldn't succeed in Syria Negative
industrial growth High Local competition with low pricesPESTEL
EGYPTEconomicalpoliticalsocioculturaltechnologicalenvironmentalGDP
and its classificationLow external
interventionpopulationcommunicationGeographical locationGrowth rate
povertyinternetLabor forceReligious beliefsUnemployment
rateCategories in textile industryImports and exportsEmployment in
textile industryControl over supply chainCompetitive analysis
EFASThreats Weight Rate Comments Global economic conditions.
0.054If global economic conditions are worsening, the company
may face obstacles in expanding their marketCompetition
0.154Be aware of the competitors from other developing countries
especially ChinaPrice and quality
0.155Making balance between price and qualityPolitical
instability
0.103Threatening the company form expansionSwitching
costs0.052The company should figure out how to make the customers
loyal to it.Total1.25Opportunities Weight Rate Comments High
demand0.1253There is continued demand for textile fabrics,
upholstery and curtains.Percentage of textile industry in
Egypt0.1253The textile industry in Egypt constitutes 25% of the
countrys non-oil exportsHigh scope for expansion0.1253There is
scope for expansion of the business and for improving production
efficiencyBOP population 0.125325% Poverty line49% They cannot
afford to buy their basic needsTotal
1.5PESTELPoliticalEconomicSocio-culturalTechnological
LegalPolitical instability Jordan is a founding member of the Arab
League.Industrial production growth rate : 2.3 , 2.6, 2.7, 2.8GDP :
26.43, 28.84, 31.02Unemployment rate : 13.5Hyper competition in the
industrial factor from U.S companiesThe textile industry in Jordan
is focused on apparel representing 30% of its exports, and also
imports upholstery.Industry (15.95% of GDP )Trade: Exports --$7.54
billion: Inflation rate 1.7%Labor force: 1.66 millionUpper middle
income country in the middle east.Preferences changesPopulation
growth rate : 2.2Population: 6 million
Jordan was ranked as the 9th most globalized nation in the
worldInternet penetration rate is 65 %QIZ ( qualifying industrial
zone between Egypt, Jordan and US )Free Trade
agreementEFASOpportunities:WeightRatingWeighted
averageCommentsContinual demand for high-quality curtains and
upholstery
0.1040.4High quality demand in JordanExisting prices of European
exports and prices in Jordan are much higher than
Moderna0.1750.85Moderna can sell its products at 50%Jordan
Government encourages exports0.154.50.675QIZ, FTACould be a price
leader0.083.50.28EFASThreats:WeightRatingWeighted
AverageCommentsPolitical instability 0.1530.45Labor
issuesPreferences/ lifestyle changes0.240.8Trends form classic to
modernStrong competition from Europe 0.0530.15Jordan exporting from
Europe upholstery and curtainsEconomic and energy
instability0.130.3Inefficient raw materialsTotal1.03.905S-O
Establish manufacturing and overseas distribution presence in
Jordan to benefit from the Jordanian governments liberal policies
for exports to U.S. firms through QIZ and FTA (Free Trade Zones)No
domestic businesses that deal with upholstery and curtains, leaving
a clear market opportunity for Moderna.
W-O
Moderna could advertise its name to market modern fabrics that
are increasing in demand in the Middle East
Production costs need to be minimized consistent with quality
and competitive pricing by outsourcing fabrics for the lower-income
customer base, to China
S-T
Export high-quality fabrics at lower prices to Europe to compete
with similar products sold at much higher prices from Italy and
other European countries
With charged prices being low, Moderna could tackle labor issues
in Jordan by minimizing workforce and giving satisfying wages.
W-T
Production methodologies need to be revamped in tune with modern
technology, preferably energy saving technology to counter the
energy problems in Jordan.
Target high-profile customers in Europe and U.S., to compete
with Warda
Overall ReccomendationEntering the Jordanian market is the most
viable and suitable strategy.
