Department of Business Administration

Final Project Report on SAPPHIRE

Report title: SAPPHIRE SM

Submitted By: Anusha Saud

Amsa Kamal
Areesha Irfan
Bareera Yaseen

Class: BBA IV B

Submitted On: 21 – 11 – 2023

Submitte Miss Anum Qamar

d To:
Table of Contents
ACKNOWLEDGEMENT...............................................................................2.

INRODUCTION.......................................................................................................................3.

VISSION, MISSION...............................................................................................................4.

SWOT ANALYSIS.................................................................................................................5.

EFE MATRIC............................................................................................................................7.

IFE MATRIX.............................................................................................................................9.

CPM.............................................................................................................................................11.

FIVE FORCES MODEL.....................................................................................................13.

GRAND STRATEGY MATRIX.....................................................................................15.

QSPM..........................................................................................................................................17.

BALANCE SCORECARD.................................................................................................20.

TOWS.........................................................................................................................................22.

SPACE MATRIX...................................................................................................................24.

BCG MATRIX........................................................................................................................28.

VRIO FRAMEWORK..........................................................................................................30.

VALUE CHAIN ANALYSIS............................................................................................32.

RUMELTS CRITERIA........................................................................................................34.
ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Miss Anum Qamar for her unwavering
commitment and insightful contributions to this thorough report. Her astute suggestions,
painstaking attention to detail, and dedication to excellence have greatly influenced the
composition of this document. Her knowledge and spirit of cooperation have enhanced the
material, resulting in a comprehensive and insightful examination of this report. Her enthusiasm,
professionalism, and positive energy were greatly appreciated for this project. The important
role played by Miss Aum Qamar is truly recognized and greatly valued.
INTRODUCTION:
Sapphire is one of the top textile and fashion brands in Pakistan. Established in 1989, the
company is one of the major export firms of ready-to-wear garments in the country. People know
Sapphire products for their qualities of innovations, competitiveness and good price. It makes its
products from clothing, footwear, accessories and children to homes textiles. The firm sells its
products in more than one thousand retail outlets in Pakistan as well as through the online store.
This company, Sapphire, has a strong commitment to corporate social responsibility and
sustainability. The company also has several plans aimed at minimizing environmental
degradation while also supporting the local community. Sapphire also belongs to the Better
Cotton Initiative that seeks to improve the lives of cotton growers.
VISSION

To be among the leading textile Companies with leadership in technology, flexibility,

responsiveness, and quality. We shall share our success with our customers by applying
innovative manufacturing, certifiable quality, excellent services, and creative alliances. Arranged
to ensure that there is an in-depth understanding of our business, our customer and global
markets. We shall be an outstanding company in the industry by developing many skills in our
workforce, and creating the safest and secure work environment and will be recognized an
excellent citizen in the local and regional community through the financial and human resources
support and we shall be sensitive to the environment.

MISSION

The objective is to position ourselves as a first class provider to the sectors in which we operate
and supply yarns, fabric and textiles, as demanded by our target audience. Customer service,
sales, and manufacturing, which involves cooperation of all associates, is necessary for
fulfillment of our mission. The company will build on its tradition of truth, equity and decency
with regards to the customers, other associates, and shareholders as well as community at large
and shareholders.

There is no such missing component in the mission statement but:

• Markets: The mission statement does not talk specifically about whom the company is
targeting. Nevertheless, it makes it clear that the company wants to be perceived as a top supplier
in the respective markets. This implies that the company knows what it’s target markets want.

• Technology: There is no clear reference to technology in the mission statement. It adds that
company is dedicated towards excellence in manufacturing. The company uses technology in
many of its manufacturing processes.

• Concern for survival, growth, and profitability: It is not evident in the mission statement that
the company is concerned with survival, growth, and profitability. On the other hand, this is
implied in the company’s objective of becoming a premium supplier to the market places it
serves. To attain this purpose, the company must sustain itself, advance, and be profitable.

The correct mission statement with 9 components can be

We aim to be the leader in the worldwide textile business with the best quality, original, and
environmentally friendly products. Powered by state-of-the-art technologies, we emphasize on
quality in manufacturing which ensures comfort, functions and style while maintaining
environmental sustainability. Transparency and socially responsive, integrity based for positive
contribution in the community. Employee health, financial responsibility, and goodwill based on
ethical practices and environmental regulation are our keys for success. “We see ourselves as
trailblazers who are defining standards of excellence and sustainability in creating the industry’s
future.”

SWOT ANALYSIS:
STRENGTHS:
1. Strong Brand Identity:
The Company has built a recognizable and trusted brand in the fashion industry.

2. Quality products:
Sapphire maintains its market position by providing high-quality products and design to their
valued consumers. Before establishing our brand, we invested two years in digital printing,
rotary printing, and a new finishing factory to ensure quality control. Their own fabric
production allows them to undertake quality control and maintain the standard of their product,
which means that they have been constant and maintained an image in a highly saturated market
throughout the year. Most rivals must acquire raw materials from several locations, which may
result in quality changes.
3. Diverse product range:
Sapphire developed new line extensions such as makeup, jewelry, western wear, perfumes and
so on in order to spread their risk and provide their clients with a one-stop shop where they
could find everything to meet their fashion needs.
4. Effective E-marketing:
Ecommerce and E-marketing have been tremendously successful, bringing in 20% of income in
the last three years. Despite the fact that there are over 100 brands offering the same goods with
good internet services, the market is entirely saturated. Sapphire uses data to improve the
efficiency and efficacy of its web advertising. Alavi is a data analysis program that uses artificial
intelligence to analyze data from previous campaigns. By doing so, the app can identify the best
audience, one that is most acceptable and useful to the brand, and one that may assist them in
expanding their consumer base. This yielded great results, and they were able to increase their
earnings. This allows them to invest and indulge exclusively with the masses who will actually
buy the product. This allows Sapphire to keep ahead of their opponents and grab the lead in any
situation.

5. Affordable pricing:
Vertically integrated textile mills control the manufacturing of each product in-house. Sapphire
manufactures the yarn, then the cloth, and finally the printing and stitching, as well as controlling
everything in between. There are no outsourced production processes. Sapphire's vertical
integration allows for the possibility of innovation and increased efficiency at all stages of the
manufacturing process. All of this contributes to Sapphire's idea of selling high-quality products
at a reasonable price.
WEAKNESSES (W):
1. Lack of International Presence:
The Company primarily operates in a single country and has limited global reach.
2. Less international delivery:
Although it allows for online orders from abroad, this accounts for a very small portion of their
overall online sales. It accounts for 2.5% to 2.5% of our overall e-commerce sales, but it is not
considered an export. As a result of the government's lack of an export framework for online
sales, They consider them as local sales.

OPPORTUNITIES (O):
1. E-commerce Growth: Expanding one's online presence and upgrading one's e-commerce
platform might help a company capitalize on the expanding trend of online shopping.
2. Global Expansion: Entering international markets might provide you with new customers
and revenue streams.
3. Customization and Personalization: Offering personalized clothing options or
customization services can.
4. Collaborations: Partnering with influencers or other fashion brands for collaborations can
enhance brand visibility and appeal.
THREATS (T):
1. Competition: The clothing industry is highly competitive, with numerous established and
emerging brands vying for market share.
2. Economic Downturn: Economic recessions can lead to reduced consumer spending on
nonessential items like clothing.
3. Changing Consumer Preferences: Rapid changes in fashion and consumer tastes can make
product planning and inventory management difficult.
4. Counterfeiting: Counterfeit products have the potential to harm a brand's reputation and
sales.

EFE MATRIX:

OPPORTUNITIES WEIGHTAG RATE WEIGHTED

E SCORE

Ecommerce growth 0.13 4 0.52

Global Expansion 0.12 2 0.48

Customization and personalization 0.11 2 0.22

Collaboration 0.13 3 0.39

THREATS WEIGHTAG RATE WEIGHTED

E SCORE

Competition 0.13 4 0.52

Economic downturn 0.12 3 0.36

Changing consumer preferences 0.13 4 0.52

Counterfeiting 0.13 3 0.39

Ecommerce growth:
E-commerce growth creates a big opportunity for the garment business, given the growing trend
of online buying. As a result, we assign a weight of 0.13 to this aspect, suggesting that it is fairly
relevant. Sapphire appears to be in a good position to gain from the expansion of e-commerce,
either because to its strong web presence, user-friendly platforms, or smart marketing techniques.
Furthermore, the fact that Sapphire items are available on well-known websites such as
Bagallery, Daraz, and a plethora of others attests to the brand's effective penetration and
performance in the online market.
Global Expansion:
The lower weight of 0.12 given to global expansion indicates that this considered a less critical
factor. Global expansion can also present new opportunities, but also there may be major risks
and challenges involved. Rating of 2 indicates that Sapphire may not be as prepared or
positioned for global markets. Sapphire Retail does not have any physical locations outside of
the United States, but it does provide online ordering; nonetheless, this accounts for a very minor
fraction of their entire internet sales. Although it accounts for 2.5% to 5% of our total e-
commerce sales, it is not classified as an export. Because the government does not yet have a
system in place for exporting goods via e-commerce, it is displayed as local sales. The company
must focus on developing global expansion strategies, such as understanding consumer
preferences around the world, managing legal frameworks, and establishing efficient distribution
networks.
Customization and personalization:
When compared to other factors, customization and personalization are not extremely important
in the garment industry, hence we assign a weight of 0.11. A rating of 2 suggests that the
organization may need to increase its responsiveness to particular customer preferences in order
to meet evolving consumer expectations for customized clothing options.
Collaboration:
we assign a weight of 0.13 to this aspect, because Fashion brands need to collaborate because it
fosters creative synergy that produces distinctive, limited-edition collections that appeal to
consumers. Influencer and celebrity partnerships help brands become more visible, reach a wider
audience, and reach a variety of demographics. In addition to being creative marketing tactics,
collaborative efforts also generate excitement, differentiation, and customer loyalty. In the end,
cooperation is a tactical instrument that improves brand narrative, allows brands to adjust to
changing trends, and boosts sales and brand equity. SAPPHIRE is collaborating with Shadab
Khan and Naseem Shah, two of Pakistan's cricket players, to launch an exclusive menswear
collection for SAPPHIRE FALL / WINTER '23. But they don't collaborate with any fashion
brands.”. SAPPHIRE’s collaborative efforts could be improved, and the company should pursue
partnerships with fashion brands.
Competition:
The apparel sector is very competitive, as evidenced by the high weight of 0.13, and effectively
handling competitive pressures is critical. A rating of 4 shows that the organization is doing an
excellent job of keeping up with competitors, maintaining high quality standards, consistently
inventing, and distinguishing itself apart in order to stay ahead of the competition.
Economic Downturn:
The weight of 0.12 suggests that it is not as serious as other risks because it may not alter as
quickly in the short term. Sapphire received a 3 for readiness, indicating that it has made some
steps to manage economic uncertainty. "We have to put more [products] on discount when we
have to sell 50 units because the economy is slowing down and we are not able to sell, say, 100
units at full price," said Sapphire's CEO. This has resulted in a huge surge in the discount trend in
Pakistan. Every brand conducts monthly clearance sales. This, however, impacts us all.
Obviously, consumers will wait for the discounts before making purchases.
Changing consumer preferences:
We assign a high weight of 0.13 because it is critical to understand and respond to consumers'
preferences in order to retain customers and keep a competitive edge in the market. Sapphire
spends 1% of its annual sales on research and development (R&D), where they concentrate on
generating new goods in response to shifting consumer wants and preferences. Sapphire offers
high-quality products at moderate prices. To better cater to its clients' interests and provide them
with a one-stop shop for all of their fashion needs, Sapphire has expanded its product line to
include makeup, jewelry, western wear, luggage, and other items.
Counterfeiting:
We give counterfeit goods a high weight of 0.13 because they are of lower quality than
authentic goods. Customers may be dissatisfied with the quality if they mistakenly purchase
counterfeit clothing under the false belief that it is from the brand. Customers may come to
connect bad quality with the real company, causing the brand's reputation to suffer.
Counterfeiting causes the company to lose sales. Sapphire monitors social media platforms and
online marketplaces for counterfeit items, and they also educate their clients about the risk of
counterfeit products and provide advice on how to recognize legitimate sapphire products. This
public awareness campaign reduces the demand for counterfeit goods while empowering
customers to make more informed shopping decisions, that’s why we assign rate of 3 on this
factor.

TWS = (0.13×4) +(0.12×2)+(0.11×2)+(0.13×3)+(0.13×4)+(0.12×3)+(0.13×4)+(0.13×3)

TWS =0.52+0.48+0.22+0.39+0.52+0.36+0.52+0.39
TWS =3.4

IFE MATRIX

STRENGTHS WEIGHTA RATE WEIGHTED

GE SCORE

Strong Brand Identity 0.18 4 0.72

Quality Products 0.17 4 0.68

Diverse Product Range 0.15 3 0.45

Effective marketing 0.18 3 0.54

Affordable pricing 0.18 4 0.72

WEAKNESSES WEIGHTA RATE WEIGHTED

GE SCORE
 No international presence 0.07 2 0.14

No international delivery 0.07 2 0.14

Internal Factors:
1: Strong brand identity: In the garment sector, a strong brand identity is critical since it fosters
client loyalty and trust. This factor's weight of 0.18 implies that it is substantially more essential.
A rating of 4 implies that the Sapphire merchant is well-established and has a strong brand
identification.
2: Quality products:
In order to retain and satisfy customers, product quality is essential. The first choice of the
people is quality which is the main factor of each brand, product quality is the foundation of
customer happiness in order to meet customer expectations, nobody compromises on quality A
weight of 0.17 suggests that, although product quality is crucial, but other elements might have a
marginally greater influence on the business's overall success. A rating of 4 indicates that the
company produces high-quality products. Sapphire maintains its market leadership by offering
their consumers the highest quality products and most innovative designs. Before opening their
company, they spent two years investing in digital printing, rotary printing, and a new finishing
factory to guarantee everything was perfect. They can inspect and assure that their items are of
the greatest quality because they create their own fabric. This allows them to maintain their great
reputation year after year in a highly competitive industry.
3: Diverse product range:
The weight given to this factor is 0.15, because diversifying into new markets or product
offerings can open up growth prospects and lessen reliance on a single product or market. A rate
of 3 indicates that Sapphire developed new line extensions such as makeup, jewelry, western
wear, perfumes and so on in order to spread their risk and provide their clients with a one-stop
shop where they could find everything to meet their fashion needs.
4: Effective marketing:
The weight given to this factor is 0.18, because effective marketing initiatives have the power to
increase revenue and improve a company's bottom line. A rate of 3 indicates that Sapphire has
great skills in advertising as the brand collaborate with both celebrities and the influencers and
use all the social media platforms for effective marketing. Data efficiency is used by Sapphire in
their internet advertising strategies. Alavi is an application that uses artificial intelligence to
analyze data from previous campaigns. This allows the app to determine the optimal audience
that is both helpful and appropriate for the company, allowing them to build their audience. As a
result, they have improved and their incomes have climbed. This allows them to invest and
indulge just with the masses who will actually buy the product. In this approach, Sapphire stays
one step ahead of their competitors and maintains a lead in all situations. But sapphire
collaborative efforts could be improved, and the company should pursue partnerships with
fashion brands for more effective marketing.

5: Affordable pricing:
The weight given to this factor is 0.15 because in the fiercely competitive world of fashion,
pricing tactics are essential. People usually like those brands who have affordable prices.
Competitive pricing plays a big role in the brand's overall success because it can draw in a
larger consumer base. The 0.18 weight emphasizes how important cost is in maintaining
consumer attractiveness. Because Sapphire is a vertically integrated textile mill, their
manufacturing is controlled in house, from making the yarn to creating the cloth, and even
printing and sewing. A rating of 3 indicates that the company is competitively priced. There are
no outsourced production processes. Because they produce everything in-house, they have a lot
of opportunities to come up with new ideas and improve things. This enables them to sell high-
quality goods at reasonable prices.
6: Lack of international presence:
The lower weight of 0.07 given to global expansion indicates that this considered a less critical
factor. Global expansion can also present new opportunities, but also there may be major risks
and challenges involved. The grade of 2 indicates that the organization has not yet expanded
globally, but this could be a future strategic decision.
7: Less international delivery:
The weight of 0.07 indicates that international delivery may be assigned a lower importance due
to challenges like customs regulations, shipping costs etc. Local delivery issues might be more
immediate and manageable, impacting customer satisfaction. The rate of 2 shows that the,
company allows for online orders from abroad, but this accounts for a very small portion of their
overall online sales. It accounts for 2.5% to 2.5% of our overall e-commerce sales, but it is not
considered an export. As a result of the government's lack of an export framework for online
sales, we display them as local sales. which could be a possible area for improvement in order to
efficiently tap into international markets.
Total Weighted Score (TWS):

TWS = (0.18×4) +(0.17×4) +(0.15×3) +(0.18×3) +(0.18×4) +(0.07×2) +(0.07×2)

TWS =0.72+0.68+0.45+0.54+0.72+0.14+0.14
TWS =3.39

This indicates that, the company has a relatively strong internal position.

CPM:
SAPPHIR NISHAT
E LINEN
 CRITICAL WEIGH RATING SCOR RATIN SCOR
SUCCESS T E G E
FACTOR
Advertising 0.20 4 0.8 3 0.6
Product 0.18 4 0.72 4 0.72
quality
Diversificatio 0.15 4 0.6 3 0.45
n
Global 0.07 1 0.07 1 0.05
expansion
Price 0.20 4 0.8 2 0.4
competition
Customer 0.20 4 0.8 4 0.8
loyalty
TOTAL 1 3.79 3.02

JUSTIFICATIONS:

Advertising:
An organization's visibility, brand perception, and customer acquisition can all be greatly
impacted by marketing and promotion, which is why advertising has a higher weight 0.20.
Effective marketing initiatives have the power to increase revenue and improve a company's
bottom line...Sapphire has great skills in advertising as the brand collaborate with both celebrities
and the influencers and use all the social media platforms so the rate given to factor is 4, whereas
Nishat doesn’t focus towards celerity endorsement which creates a big impact so the rate given to
Nishat is 3. SAPPHIRE’s collaborative efforts could be improved, and the company should
pursue partnerships with fashion brands.

Product quality
In order to retain and satisfy customers, product quality is essential. The first choice of the
people is quality which is the main factor of each brand, nobody compromises on quality A
weight of 0.18 suggests that, although product quality is crucial, but other elements might have a
marginally greater influence on the business's overall success. Both brands are rich in quality
with superb designing and excellent artistry so the rate given to both is 4.

Diversification
The weight given to this factor is 0.15, because diversifying into new markets or product
offerings can open up growth prospects and lessen reliance on a single product or market.
Sapphire developed new line extensions such as makeup, jewelry, western wear, perfumes and so
on in order to spread their risk and provide their clients with a one-stop shop where they could
find everything to meet their fashion needs so the rate given to it is 4, whereas Nishat is only
revolving in such limited things like clothing that’s why the rate given is 3
Global expansion
The lower weight of 0.07 given to global expansion indicates that this considered a less critical
factor. Global expansion can also present new opportunities, but also there may be major risks
and challenges involved., both brands have only outlets in Pakistan as they don’t have
international outlets that’s why the rate given to both is 1.
Price competition
The weight given to this factor is 0.15 because in the fiercely competitive world of fashion,
pricing tactics are essential. People usually like those brands who have affordable prices.
Competitive pricing plays a big role in the brand's overall success because it can draw in a larger
consumer base. Sapphire has affordable prices; there normal lawn is of Rs:3200 that why the
rate given to sapphire is 4 whereas the normal lawn in Nishat is Rs:4000 that why the rate given
to this is 2.
Customer loyalty:
Long-term success in the fashion industry depends on retaining devoted clients. Positive word-
of-mouth, repeat business, and a solid brand reputation can result from having a highly loyal
customer base. so, the weight given to this factor is 0.20, both brands have their own loyal
customers on behalf of their services so the rate given to both is 4.

FIVE FORCES MODEL:

Threat of new entrants:

In a situation when other competitors try to enter into the clothing market especially in presence
of branded companies such as sapphire, problems are likely found.

Economy of scales is beneficial to Sapphire as they are able to produce goods at lower costs
because of large volumes produced. They may not incur investments in order to achieve cost-
efficiency, thus making it hard for upstarts to catch them.

Setting up of production facilities, acquiring of resources, and developing marketing and

distribution systems can be an expensive affair. New entrants must have a sufficient amount of
fund that will enable them to compete successfully.

They gained reputable labels of trust in both sapphire and other companies. New competitors
usually have to take their time and invest a lot of resources in building their own brand
reputation. There could be many customers that have already had great experiences with
Sapphire’s products and thus might perceive it as a highly valued brand leading them not to
change to the other ones. Perhaps, over the years, Sapphire is likely to have cultivated brand
loyalty among its clients. Established brands have an image of luxury, fashion, and dependable
after care support. It may lower chances that customers will be disappointed with a brand they
trusted because previously customers preferred well-known brands for their reliability.

Bargaining power of buyers:

Consumers’ bargaining powers are higher than average and this is attributed to their numerous
choice. However, since they can significantly influence prices, bargain for better terms, demand
quality as well as consistently compare offerings of different brands, including J., Nishatt, or
Khaadi among others, clients are a powerful force in the market. Consequently, Sapphire
believes it They use their marketing campaigns and promotion strategies that lure customers to
buy.

Threat of substitute products or services:

The company knows that customers can switch their focus from industry’s clothes like Sapphire
and turn to such companies as J., Nishat, Limelight or Khaadi. Sapphire attempts to distinguish
itself from this through great efforts of differentiation. Sapphire have since been in an expansion
path, trying to guard against threats of substitutes and seizing a big market share by producing
unique products, marketing them perfectly, and making sure they remain exceptional. Affordable
prices without compromise of quality is another notable attribute with sapphire. They try to
retain the customers by making them remain loyal in a bid to avoid getting lost to other
businesses if they are unique enough. It is important because it maintains their popularity thus
ensuring that they do not lose clients to competitors.

Rivalry among existing competitors:

This idea focuses on the level of rivalry among the companies within an economy and
aggressiveness of these rivals. This can be very competitive and in such cases a price war is
likely to occur wherein companies will strive to undersell each other. Such a result may not
necessarily mean profitability to all competitors. In order to do so, Sapphire emphasizes
differentiating its products. This is done through creation of new and distinct characteristics,
provision of additional products which are different.

Sapphire is a brand that spends significantly on advertising. They emphasize on what makes their
brands products unique through using different approaches. They also give out special offers and
vouchers so as to win new clients while keeping the old ones happy. However, throughout this
time, Sapphire maintains a competitive edge in the industry through hard work.

Bargaining power of suppliers

Supplier’s bargaining power towards Sapphire Pakistan is weak. The company has multiple
suppliers that it could select from its pool and will have no problem switching into another one.
Moreover, Sapphire Pakistan has a plant of its own that makes some room for more in their
 supply relationships. Nevertheless, a possible rise in supplier’s prices considerably may affect
Sapphire Pakistan profits.

GRAND STRATEGIC MATRIX- GSM

A tool for strategic planning, the Grand Strategy Matrix assists companies in creating plans that
are suited for their competitive environment and rate of market expansion. Plotting market
growth on the vertical axis and competitive position on the horizontal axis results in four
quadrants of this two-dimensional matrix. The grand strategy matrix is a technique for creating
novel and distinctive corporate strategies. Any company can be placed in any one of the Grand
Strategy Matrix's four strategy quadrants.

Rapid market growth.

2nd Quadrant question mark 1st Quadrant stars

 Denim  Ready to wear-RTW

 Sapphire
Weak competitive Footwear
position  Men’s Wear
 Sapphire Fragrances  Kids Wear
Strong comp

3rd Quadrant dogs 4th Quadrant cashcows

 Unstitched fabrics  Home textiles

 Accessories

Slow market growth

Justifications:

1st Quadrant

Sapphire Pakistan can certainly diversify into the kids wear market, including a range of alcohol-
free, hypoallergenic perfumes and organic fragrances and they should also invest in men’s wear
line like formal coats and sneakers. This would be a strategic move to cater to the growing
demand for safe and natural products for children. It can be the potential benefit for the sapphire.

2ND Quadrant

Sapphire is already working on recycling denim to reduce pollution. This is a commendable

initiative that demonstrates their commitment to sustainability. Additionally, launching an
athletic shoe line could be a strategic move to expand their product offerings and gain a
competitive edge in the market.

3RD Quadrant

Sapphire's primary focus on textiles may be contributing to the declining performance of its
accessories line. To address this issue, implementing a product assortment and pricing strategy
that aligns with industry trends and customer preferences is crucial.

4TH Quadrant

Sapphire Pakistan's decision to venture into the home textile market is a promising step towards
expanding its product portfolio and potentially achieving sustainable profitability. To ensure the
success of this new line, it is essential to adopt a strategic approach that emphasizes uniqueness,
continuous market analysis, and innovation.
 QUANTITATIVE STRATEGIC PLANING MATRIX- QSPM

STRATEGY 01 STRATEGY 02

Franchising can be the Sapphire can expand into

potential business model for new markets to grow their
Sapphire textile to expand business and reduce their
their market and reach new reliance on traditional
customers. markets.

KEY FACTORS WEIGH ATTRACTIVENES TOTA ATTRACTIVENES TOTA

T S L S L

SCORE SCORE

STRENGTH

Strong Brand 0.18 3 0.54 4 0.72

Identity

Quality Products 0.18 3 0.54 3 0.54

Diverse Product 0.16 3 0.48 3 0.48

Range

Effective 0.15 3 0.45 3 0.45

marketing

Affordable pricing 0.15 2 0.3 3 0.45

WEAKNESSES
No international 0.09 - - 3 0.27
presence

Less international 0.09 - - 3 0.27

delivery

OPPORTUNITIE
S

Ecommerce 0.13 3 0.39 3 0.39

growth

Global Expansion 0.13 4 0.52 4 0.52

Customization and 0.11 2 0.22 2 0.22

personalization

Collaboration 0.12 4 0.48 3 0.36

THREATS

Competition 0.13 3 0.39 3 0.39

Economic 0.12 3 0.36 2 0.24

downturn

Changing 0.13 4 0.52 2 0.26

consumer
preferences

Counterfeiting 0.13 3 0.39 2 0.26

TOTAL 5.58 5.82

STRATEGY#01

STRENGTH

 Successful franchisees contribute to the overall reputation of the Sapphire brand. Positive
customer experiences at franchise locations reinforce the brand's image as a reliable and
trustworthy provider of high-quality textile products.
 Franchisees operating in different regions can provide valuable insights into local
preferences and market trends. This information can be used to tailor product offerings
and ensure that Sapphire products remain relevant and appealing to customers in each
market.
  The franchise network can serve as a testing ground for new product ideas and
innovations. Franchisees can provide feedback on new products, identify potential issues
before full-scale launch, and help refine product offerings based on real-world market
reactions.
 By partnering with franchisees, Sapphire Textile can expand its reach into new markets
and introduce its brand to a wider audience. Franchisees will have a vested interest in
promoting the Sapphire Textile brand and ensuring that it is well-represented in their
local markets.
 Franchisees interact directly with customers in their markets, gaining valuable insights
into price sensitivity and preferences, but varying operating costs can be a challenge for
sapphire.

OPPORTUNITY

 E-COMMERCE GROWTH Franchising can expand Sapphire's online presence by

establishing a network of franchisees who can promote and sell products through their
own e-commerce platforms or partner with existing e-commerce marketplaces. This can
increase brand visibility and online reach, driving traffic to Sapphire's online store and
potentially boosting e-commerce sales.
 GLOBAL EXPANSION Franchising can accelerate Sapphire's global growth by allowing
it to expand into multiple markets simultaneously. Franchisees can establish new stores at
a faster pace than Sapphire could on its own, expanding the brand's global presence and
market share more rapidly.
 CUSTOMIZATION Franchisees can build closer relationships with their customers by
providing personalized service and attention but ensuring quality control in all
franchisees can be difficult that can manage through training, audits, and quality control
measures.
 COLLABORATION Franchisees can connect Sapphire with experts, artisans, and
specialized resources in their respective markets.

THREATS

 COMPETETION Franchisees can bring in talent and expertise to manage operations,

marketing, and sales in their respective markets. This can help Sapphire tap into
knowledge, skills, and networks, making its operations more efficient, responsive, and
competitive in each region.
 ECONOMIC DOWNTURN Franchising can share the risks and burdens of business
operations with franchisees. During economic downturns, franchisees may be willing to
bear some of the financial strain, reducing the impact on Sapphire's own finances.
 CHANGING CONSUMER PREFERENCES Franchisees can tailor marketing
campaigns and customer engagement initiatives to resonate with audiences and address
changing consumer preferences. This approach can increase the effectiveness of
 marketing efforts, strengthen customer relationships, and enhance brand loyalty in
specific regions.
 COUNTERFEITING Expanding its market reach through franchising can increase
Sapphire's brand awareness among consumers in new regions. This heightened awareness
can make it more difficult for counterfeiters to deceive customers with fake products.

STRATEGY#02

STRENGTH

 STRONG BRAND IDENTITY A strong sense of brand identification serves as the

cornerstone for a market growth strategy that works. In addition to improving recognition
and building trust, it offers a structure for efficient communication and market adaption.
 QUALITY PRODUCTS Goods of high quality help to satisfy customers, which promotes
repeat business and loyalty. Customer advocates—who provide good testimonials and
reviews—are more likely to be satisfied consumers and can aid in the brand's
establishment in new areas.
 DIVERSE PRODUCT RANGE By catering to a range of interests and preferences, a
wide product line expands the brand's appeal in new areas. Moreover, it offers chances
for upselling and cross-selling, which boosts total market share.
 EFFECTIVE MARKETING Strategic marketing aids in setting the business apart from
rivals in the new market. It influences customer decisions and propels market penetration
by educating them about the brand's advantages and distinctive products.
 AFFORADABLE PRICING Sapphire Pakistan may expand into new areas where price
sensitivity plays a significant role in influencing customer purchase decisions by
providing reasonably priced items. This may result in a large expansion of the clientele
and market share of the business, together with a strong likelihood of financial success.

WEAKNESS

 NO INTERNATIONAL PRESENCE The risk of entering a new market is higher than

that of regulating an existing one. Overcoming numerous entrance obstacles, including as
tariffs, laws, and cultural differences, is typically necessary when expanding into new
markets. It could be more difficult for Sapphire Textile Pakistan to get beyond these
obstacles and take a firm hold in untapped areas.
 LESS INTERNATIONAL DELIVERY Restricted international distribution may result in
increased shipping expenses, raising the cost of entering new markets and lowering profit
margins.

OPPORTUNITY

 E-COMMERCE GROWTH One important development that is changing the retail sector
and giving businesses new chances to reach a wider audience and attract more clients is
 the rise of e-commerce. Sapphire Textile Pakistan may grow into new markets by
utilizing e-commerce, without having to have a physical presence in those regions
 GLOBAL EXPANSION Sapphire Textile Pakistan may expand its clientele, enter new
markets, and lessen its dependency on established markets by pursuing global expansion
as a strategic move. The business may change its goods and mark up new markets by
entering new geographic areas and gaining access to new possibilities, trends, and
customer preferences
 COSTOMIZATION Customers are looking for products that reflect their unique tastes
and preferences, so customization and personalization are becoming more and more
important.
 COLLABORATION Sapphire Textile Pakistan can overcome obstacles and broaden its
reach more successfully by working with other international companies in the textile
industry and beyond to gain access to new markets, resources, and expertise.

THREATS

 COMPETETION In order to thrive in these competitive markets, Sapphire Textile

Pakistan will need to differentiate its products, offer competitive pricing, and deliver
exceptional customer service.
 ECONOMIC DOWNTURN As consumer preferences change over time, the company
will need to be able to consistently adapt its products and marketing strategies in order to
stay ahead of the curve.
 CHANGING CONSUMER PREFERENCES Market expansion may face difficulties
during recessions. Spending by consumers would decline, and market volatility might
rise. But there are other benefits to expanding into new areas during a slump, like
reaching out to value-seeking customer segments or setting the brand apart.
 COUNTERFEITING Entering the international market. The company's profitability,
sales, and brand reputation can all be negatively impacted by counterfeiting.

CONCLUSION

Sapphire Textile finds greater appeal in the approach "Sapphire can expand into new markets to
grow their business and reduce their reliance on traditional markets" than in the other one since it
presents chances for both growth and long-term sustainability. Strategic execution of
implementation is necessary, taking into account the distinctive qualities of each market and
emphasizing the development of a robust and well-known brand worldwide.

The Balance Scorecard:

S.N Area of objectives Measures Time Responsible

O
1 Customers
 Customer Gather information by their Daily basis Social media
 satisfaction online reviews, regular team
feedbacks, suggestions,
increasing sales.
Daily basis Social media
 Customer collect data from website team
experience reviews and comments on their
postings on Facebook,
Instagram, and reviews on their
website to resolve customer
concerns and enhancing the
overall customer experience.
2: Employees
 Strengthen Introduce Training and As per HR department
employee skills development programs needs
and knowledge according to the changing
environment in the textile
sectors, the soft skills training
courses are encouraged in the
company as it enhances the
sales and the marketing.

 Acknowledging
and appreciate They show their appreciation Based on HR department
employees and acknowledgement for their their work
workers by offering and needs
competitive salaries, extensive
benefit packages, performance
bonuses, paid time off, medical
benefits, and equal
employment opportunities for
people of all backgrounds.
3 Financials
 Increased sales Reach a 24.95% increase in Annually Finance
sales department

 Enhance ROA and

ROE Compared to the industry Annually Finance
average of 5.50%, the department
company's Return on Equity
(ROE) is 17.14% which
substantially higher. It
indicates that the company is
generating higher returns for its
shareholders in comparison to
the industry average.
The Return on Assets (ROA)
 of the company is 4.64%,
marginally higher than the
4.5% industry average. It
indicates that the business is
making good use of its
resources to turn a profit.
4: CSR
 Good health and Investing in numerous Ongoing CSR department
well being hospitals across the nation and
managing free eye camp for
over 20 years, the organization
has consistently contributed to
the development of a stronger,
healthier country
 Education
Established four schools that Ongoing CSR department
annually assist over 25,000
students in receiving a high-
quality education from
underprivileged families.

TOWS:

STRENGTH WEAKNESS
 1: Strong Brand 1: Lack of International
TOWS Identity: Presence:
MATRIX:  2: Quality Products: 2: Lack of international
3: Diverse Product Range: delivery:
4: Effective E-marketing:
5: Affordable pricing:

OPPURTUNITES SO STRATEGIES WO STRATEIGES

1. E-commerce Growth: 1. Sapphire invest an amount 1. Globally presence create a
2. Global Expansion: of 1% of its sales each year strong impact on brand as
3. Customization and on research and development well as there is revenue
Personalization: to achieve those efficiencies, generation and customers
4. Collaborations: they work on quality and easily trust on your brand.
customization clothing. (we They have to work a lot on
work on product premier retail outlets and
development, clothing is our focus on their aim to fulfil
strength) (S2, O3) their customer on the right
2.By expanding the brand into time. (W1, O2)
 foreign territories, they are 2. Companies can profit on
increasing awareness, develop varied market demands,
a global audience, make an preferences, and purchasing
identity and of course grow power by selling their
their business. Their focus is products or services abroad.
on efficiency, consolidation This raised the possibility for
and margin increase with revenue and profit. A
profit globally. (S1, O2) corporation can unleash the
3.Collaborating with niche potential for increased sales
influencers that aligns with volume by utilizing an e-
your brand can work wonder commerce platform. (W2,
for the business partnering O1)
with influencer’s can help
business boost sales and
elevate their brand profiles.
(S4, O4)
THREATS ST STRATEGIES WT STRATEGIES
1. Competition: 1. Diversify product offerings 1. As the international brands
2. Economic Downturn: to reduce dependence on step inn there’s lot of
3. Changing Consumer seasonal sales and counteract competition among clothing
Preferences: brands that’s why sapphire
the impact of economic
4. Counterfeiting: has to become a key player,
fluctuations. Companies with work smartly, show the
diverse product portfolios are uniqueness and keep an eye
often better able to weather on the competitor to sustain
economic downturns or its business. (W1, T1)
changes in consumer 2. Consumer preferences
preferences. This is because change I n minutes due to a
lack of delivery services, and
they have multiple sources of
they shift to other trends,
revenue and can pivot to resulting in a loss for the
focus on different products or organization. (W2, T3)
markets as needed (S3, T2)
2. Customers are fashion
conscious and have different
preferences, they want good
quality with affordable prices
as well, and they have to
identify the trend in advance.
Work like key players of the
firm and respond very quickly
in trend. (S5, T3)
3. Sapphire Pakistan can use
anti-counterfeiting measures
 such as holograms, RFID
tags, and watermarks to make
it more difficult to counterfeit
its products. Sapphire
Pakistan can educate
consumers about the dangers
of counterfeit products and
how to spot them. This can
help to reduce demand for
counterfeit products. (S4, T4)

SPACE MATRIX:

Internal Strategic Position (ISP):

Financial Strength (FS): (active strength)
1. Sapphire's financial results have been excellent lately. The company declared a net
profit of Rs. 3.062 billion on revenue of Rs. 52.880 billion for the fiscal year that
concluded on June 30, 2023. The operating profit margin for the company was
12.51%, while the gross profit margin was 14.50%.
2. Sapphire's return on assets (ROA) and return on equity (ROE) are in line with the
average ROA and ROE of Pakistani fashion sector enterprises. The industry
averages for ROE and ROA are 5.50% and 4.50%, respectively. Compared to the
industry average of 5.50%, the company's Return on Equity (ROE) is 17.14% which
substantially higher. It indicates that the company is generating higher returns for its
shareholders in comparison to the industry average. The Return on Assets (ROA) of
the company is 4.64%, marginally higher than the 4.5% industry average. It indicates
that the business is making good use of its resources to turn a profit.In the past few
years, sapphire's ROA and ROE have been increasing. This is due in part to the
company's good financial performance and strict financial management style.
Competitive Advantage (CA): (high market share)

1. 1. Sapphire is expected to have a 30% market share in the Pakistani fashion industry by
2023. With over 60 locations across Pakistan, the firm is the largest fashion retailer in the
country.

2. 2. Sapphire debuted a sustainable apparel collection made of regenerated cotton in 2022.

Sapphire's R&D team created the range in response to rising consumer demand for
 environmentally friendly clothing. Sapphire launched an AR-powered virtual try-on app
in 2023. Customers may virtually try on garments before purchasing them via the app.
Sapphire's R&D team created it to provide customers with a more convenient and
personalized purchasing experience.

3. Sapphire has a customer loyalty program that rewards customers for their support of
Sapphire. The program provides a number of advantages, including discounts, unique
offers, and early access to new products.

External Strategic Position (ESP):

Industry Strength (IS): (OVERALL REPUTATION OF SAPPHIRE IN TEXTILE
INDUSTRY
1. Sapphire has made marketing and branding investments in order to raise brand awareness
and attract new customers. The company's strong brand presence has helped it grow and
gain market share.
2. Sapphire has a good financial position, which allows it to invest in its operations, expand
its business, and pursue new prospects. The financial health of the organization originates
from its strong sales performance, efficient cost management, and cautious financial
strategy.
3. Sapphire has improved its productivity significantly, allowing it to manufacture more
effectively, cut expenses, and increase its overall competitiveness. The company's
productivity dedication has been critical to its sustained success and expansion in the
Pakistani fashion sector. Sapphire has implemented a lean manufacturing system, which
has reduced waste by 15% and improved production efficiency by 10%. Sapphire
implemented an automated inventory management system, which reduced stock outs by
20% while increasing order fulfillment accuracy by 95%. SAPPHIRE IS IN
CONINIOUS IMPROVEMENT
Environmental Stability (ES):

1. Sapphire is working with artificial intelligence (AI) to improve product

recommendations, customer support, and fraud detection. The company is employing
artificial intelligence to create chatbots that can answer client questions, provide product
recommendations, and process orders. Sapphire also use artificial intelligence to detect
fraudulent transactions in real time.
2. Sapphire's prices are relatively reasonable, particularly for unstitched women's outfits,
children's clothing, and accessories. As a result, the brand is a favorite choice among
budget-conscious buyers. Sapphire, on the other hand, provides a range of premium
products at higher price points. This enables the organization to serve a broader spectrum
of clients while increasing earnings.
3. Over the years, Sapphire has built a strong brand recognition and consumer devotion,
making it difficult for new entrants to obtain market share. Consumers are accustomed
with and trust Sapphire's products, making them less inclined to move to a new
competition.
 FINANCIAL STRENGTH (FS) ENVIRONMENTAL STABILITY (ES)
 Capital +5  Technological Change -1
 ROE + 4  Price Range -3
 ROA +6  Barrier to Entry - 2
AVERAGE SCORE = + 5 AVERAGE SCORE = -2
INDUSTRY STRENGTH (IS) COMPETITVE ADVANTAGE (CA)
 Growth +6  Market Share -1
 Financial stability +5  R &D -2
 Productivity +5  Customer Loyalty -2
AVERAGE SCORE = +5.3 AVERAGE SCORE = -1.6
TOTAL X – AXIS SCORE = 10.3 TOTAL Y – AXIS SCORE = - 3.6

FS 1 2 3 4 5 6

CA 6 5 4 3 2 1 1 2 3 4 5 6 IS
A
6 5 4 3 2 1
 BCG MATRIX:

STARS QUESTION MARKS

1. Ready to wear (RTW) 1. Denim
2. Men’s Wear 2. Sapphire Footwear
3. Kids Wear 3. Sapphire Fragrances
High market share with high market Low market share with high market
growth growth

CASH COWS DOGS

Home textiles 1. Unstitched fabrics
High market share with low market 2. Accessories
 growth Low market share with low market growth

Business Unit Relative Market BCG Justification

Market Growth Category
Share Rate
Ready-to-wear 25% 15% Star Sapphire Textiles Pakistan, the largest RTW
(RTW) High High retailer in Pakistan, has a market share
exceeding 25%. The RTW market is projected
to record a CAGR of over 15% in the years to
come. As a result, RTW is Sapphire Textiles
Pakistan’s star business unit.
Extensive retail network of Sapphire spread in
Pakistan- Wide range of RTW products for
different customer needs- High brand image and
credibility.
Sapphire Men's 25% 10% Star Sapphire Men’s Wear is the largest men’s wear
Wear High High retailer in Pakistan, with a market share of more
than 25%. The men’s wear market is projected
to register a CAGR of more than 10% for the
ensuing years. As a result, Sapphire Men’s Wear
represents the star business unit for Sapphire
Textiles Pakistan. THE REASON OF HIGH
MARKET IS COLLABORATION WITH
CRICKETERS AND SPONSOR THEIR MENS
WEAR
The reasons for this growth are mainly due to
urbanization, high-disposable income and
trendier men. Sapphire Men’s Wear has
established good image in Pakistan. It also
involves quality, style, and being affordable
which makes this brand very popular amongst
Pakistani men.
Sapphire Kids' 15% 15% Star With a market share of more than 15%,
Wear High High Sapphire Kids' Wear is one of Sapphire Textiles
Pakistan's expanding business units. Over 15%
compound annual growth rate is anticipated in
the kids' apparel market in the upcoming years.
As a result, Sapphire Kids' Wear is Sapphire
Textiles Pakistan's top business division.
Sapphire Kids' Wear is doing a great job of
broadening the appeal of its brand to include
stylish apparel for older kids in addition to
traditional kids' wear. Growth in sales is being
fueled by this expansion, which is drawing in
 new clients.
Home textiles 20% 10% Cash cow With a market share of more than 20%,
WEAK High Low Sapphire Textiles Pakistan is a significant
MARKETING IS participant in the home textiles industry. In the
REASON OF LOW upcoming years, it is anticipated that the home
GROWTH textiles industry would expand at a CAGR of
more than 10%. As a result, Sapphire Textiles
Pakistan's cash cow business area is home
textiles.
Sapphire offers a wide variety of home textile
products. - Robust market share in both home
and foreign markets - Effective cost control and
manufacturing procedures
1. Unstitched 15% 5% Dog  Reduced market share as a result of shifting
fabrics Low Low customer preferences; fierce competition
2. Accessorie 2% from cheaper, unbranded materials; and little
s Low room for expansion in the home market.
 The shift in customer preferences towards
ready-to-wear (RTW) garments has resulted
in a fall in the sapphire unstitched fabrics
market in Pakistan in recent years. Factors
like growing urbanization, hectic lifestyles,
and rising disposable incomes are what are
causing this trend. Consequently, Sapphire
Textiles' unstitched collection business has
been under pressure since the market share
of unstitched fabrics has been declining.
 Sapphire Accessories is a relatively small
business, holding less than 2% of the
market. Pakistan's accessory sector is
likewise not expanding very quickly and is
somewhat tiny. Sapphire Accessories thus
does not produce a significant amount of
cash flows for the business DUE TO HIGH
PRICES AND NOT SO TRENDY To
preserve its brand image and provide a wide
selection of products to its clients, the
company can decide to continue with this
venture.
Denim 10% 8%  The rise in Pakistani demand for denim
Low High items;
Sapphire 5% • Sapphire's recent debut into the denim
Footwear Low Question market;
mark • Possibility of growth into additional
Sapphire 10% 8% product categories and markets;
Fragrances Low High Sapphire Footwear is a very new venture for
 Sapphire, holding less than 5% of the
market. Nonetheless, the business is
expanding quickly; over the previous year,
revenue increased by more than 50%. This is
because Sapphire has a great brand
reputation and shoes are becoming more and
more popular in Pakistan. To sustain its
development trajectory, Sapphire Footwear
will need to keep up its innovative efforts
and marketing expenditures, though, given
how fiercely competitive the footwear
business is.
 MARKET SHARE OF FRAGRANCES I
LOW BCZ SAPPHIRE IS WORKING
RELATIVELY HIGH PRICES BUT LESS
QUALITY With a market share of less than
10%, Sapphire Fragrances is a new business
division of Sapphire Textiles Pakistan. Over
8% compound annual growth is predicted
for the fragrances market in the upcoming
years. Nonetheless, there is fierce
competition in the fragrances business. As a
result, Sapphire Textiles Pakistan's Sapphire
Fragrances business unit is marked with a
question mark.

VRIO FRAMEWORK:
. It is based on four main criteria:
Value: Does the resource or capacity add value to the customers' lives?
Rarity: Is the resource or capability uncommon or easily replicated?
Imitability: Can competitors simply replicate the resource or capability?
Organization: Can the organization effectively organize and deploy its resources and
capabilities?

Value: Customers benefit from Sapphire Textiles' resources and expertise in a variety of ways.
The company's strong brand reputation aids in client acquisition and retention. Customers like
Sapphire Textiles' products for their quality and elegance. The company's extensive supplier
network assists it in obtaining high-quality raw materials at competitive costs, allowing it to
make high-quality products at a cheaper cost. Sapphire Textiles' talented team can efficiently
 produce high-quality products, allowing the company to satisfy client demand while also
lowering expenses. The company's emphasis on innovation enables it to develop new goods and
processes to fulfill the needs of its consumers.

Rarity: The resources and capabilities of Sapphire Textiles are unique or difficult to reproduce.
The excellent brand reputation of the organization is a significant asset that is tough to
reproduce. Sapphire Textiles' supplier network is also a key asset that is tough to duplicate. The
skilled workforce of the organization is likewise a valuable asset that is tough to reproduce. The
focus on innovation at Sapphire Textiles is also a valuable asset that is tough to imitate.

Imitability: The resources and capabilities of Sapphire Textiles are difficult to duplicate.
Because it is the result of years of hard work and dedication, the company's excellent brand
reputation is tough to mimic. Sapphire Textiles' supplier network is tough to replicate because it
is built on long-standing connections. The competent team of Sapphire Textiles is impossible to
mimic because it is the result of years of training and experience. Sapphire Textiles' innovation
focus is tough to replicate because it necessitates a culture of creativity and innovation.

Organization: Sapphire Textiles is able to effectively organize and deploy its resources and
competencies. The organization has a competent management team that can make informed
judgments and efficiently implement them. Sapphire Textiles fosters an innovative culture that
encourages people to think outside the box and come up with fresh ideas. Sapphire Textiles
places a high value on client satisfaction, which motivates the company to meet its customers'
expectations.

RESOURCE VALUE RARITY IMITABILITY ORGANIZATION COMPETITIVE

ADVANTAGE
Strong brand High High Moderate High Yes
reputation
Vertical High High Moderate High Yes
integration
Design expertise High High Moderate High Yes
Efficient supply High Moderate Moderate High Yes
chain
Strong financial High Moderate Moderate High Yes
position
Employee skills High Moderate Moderate High Yes
and experience
IT infrastructure High Moderate Moderate High Yes
1. Strong brand reputation: Sapphire Textiles has been in business for almost 40 years and
has established a solid reputation for quality and style. This is a difficult reputation to
replicate because it is built on years of consumer loyalty and trust.
2. Vertical integration: Sapphire Textiles is one of Pakistan's few vertically integrated textile
enterprises. This integration provides the organization with a substantial cost advantage over
its competitors.
3. Design expertise: Sapphire Textiles is a talented design team that creates attractive and
unique designs. Because they are founded on the company's distinct creative vision, these
designs are difficult to copy.
4. Efficient supply chain: Sapphire Textiles has an efficient supply network, allowing them to
develop and deliver items promptly and affordably. This efficiency is difficult to replicate
because it is built on the company's own logistical systems and supplier connections.
5. Strong financial position: Sapphire Textiles is in good financial shape, with a healthy
balance sheet and a high credit rating. This position is difficult to replicate because it is
founded on the company's lengthy history of success and prudent financial management
procedures.
6. Employee skills and experience: Sapphire Textiles employs qualified and experienced
workers. These individuals are tough to replace because they have the requisite knowledge
and ability to develop high-quality products and deliver exceptional customer service.
7. IT infrastructure: Sapphire Textiles has a cutting-edge IT infrastructure that supports its
operations and allows it to collect and analyze data. Because it is based on the company's
own software and processes, this infrastructure is difficult to replicate.

VALUE CHAIN ANALYSIS

HOW WE MADE THE PRODUCTS AND MANUFACTURE Sapphire Textile Mills Limited
(STML) is a leading vertically integrated textile manufacturer and retailer in Pakistan. The
company's value chain encompasses the entire process of transforming raw cotton into finished
apparel, spanning from cotton cultivation to retail sales.

Upstream Activities:

 Cotton Cultivation: STML sources cotton from a network of farmers and ginners across
Pakistan. The company emphasizes sustainable cotton cultivation practices and has
established a Direct-to-Grower™ Programme to promote transparency and traceability in its
cotton supply chain.
 Yarn Production: STML operates spinning mills to produce yarn from the raw cotton it
sources. The company utilizes state-of-the-art spinning technology to ensure high-quality
yarn production.
 Fabric Manufacturing: STML's weaving and knitting MACHINE units transform yarn into
various types of fabrics, including denim, lawn, and knitwear. The company employs
 advanced weaving and knitting machines to produce high-quality fabrics that meet
international standards.

Midstream Activities

 Dyeing and Finishing: STML's dyeing and finishing facilities impart color and functional
properties to the fabrics. The company employs eco-friendly dyeing processes and adheres to
stringent environmental standards.
 Printing: STML's printing facilities add designs and patterns to the fabrics using various
printing techniques, such as rotary screen printing and digital printing.
 Embroidery: STML's embroidery unit embellishes garments with intricate embroidery
designs, adding value and appeal to the products.

Downstream Activities:

 Garment Manufacturing: STML's garment manufacturing facilities cut, sew, and assemble
fabrics into finished apparel. The company employs skilled labor and utilizes advanced
sewing machines to produce high-quality garments.
 Retailing: STML operates a network of retail stores across Pakistan, offering a wide range of
apparel and accessories under its own brand name, Sapphire. The company also sells its
products through online channels and international distributors.

Logistics and Supply Chain Management:

STML maintains an efficient logistics and supply chain management system to ensure the
smooth flow of goods from raw materials to retail stores. The company utilizes technology
solutions to optimize its supply chain operations and minimize lead times.

Sustainability Initiatives:

STML is committed to sustainable practices throughout its value chain. The company has
implemented various initiatives to reduce its environmental footprint, promote responsible
sourcing, and ensure fair labor practices.

Innovation and Technology:

STML continuously invests in innovation and technology to enhance its product quality,
manufacturing efficiency, and supply chain management. The company adopts new technologies
and processes to stay ahead of industry trends and maintain its competitive edge.

RUMELT’S CRITERIA
Criteria Description Justification
Consistency The strategy The company's strategies are aligned with its goals to become a
must be market leader in the fashion industry, the company has established a
internally trusted and recognizable brand. By offering their cherished
consistent. customers and client’s high-quality products and designs at
affordable prices as compared to its rivals, Sapphire maintains its
market position. Sapphire expanded their product offerings to include
jewelry, makeup, western wear, and other items to mitigate risk and
offer customers a one-stop shop for all their fashion requirements.

Consonance The strategy Saphire follows the trends in order to compete its rivals. Since their
must be rivals have a wide range of products, likewise they developed a
externally diversified product range that will satisfy a wider range of needs for
consistent. the modern consumer. Sapphire is working to develop products to
meet this need with industry leaders.

Advantage The strategy Sapphire Pakistan’s strategic move gives them a competitive
must create or advantage because it gives the company an edge over their
maintain a competitors, They set themselves apart from competitors with their
competitive distinctive designs, diversified product range, outstanding quality,
advantage. competitive pricing, and powerful brand identity.

Feasibility The strategy The strategy is practical considering the organizations’ resources and
must be feasible. capabilities. They have their own production capabilities and a
diverse product line in an extremely competitive market. They are
also very technologically advanced, possessing all the equipment
required to produce high-end goods, and employ successful
marketing strategies to keep the brand at the forefront and to stay one
step ahead of their rivals in every circumstance.