Assignment on

SWOT Analysis of Gildan (G.A.B) activewear Bangladesh limited

Submitted to: Mamtaj Akter

Associate professor
Department of Marketing
Faculty of Business Administration
Jahangirnagar University

Submitted By : Md. Robiul Awal

ID: 20222121
Major: Human Resource Management
Batch: 33rd
Program: EMBA, Faculty of Business Administration
Jahangirnagar University

Date of Submission: 30 December, 2022

 Background of Gildan Activewear Inc.

Gildan (G.A.B) Activewear Inc. is a Canadian manufacturer of branded clothing, including

undecorated blank activewear such as t-shirts, sport shirts and fleeces, which are next decorated
by screen printing companies with designs and logos. The company as well as supplies branded
and private label athletic, casual, and dress socks to retail companies in the United States
including Gold Toe Brands, Powers ox, Silver Toe, Aura, All Pro, and the Gildan brand. The
company also manufactures and allocates Under Armor and New Balance brand socks. The
company has almost 42,000 employees worldwide, and owns and activates manufacturing
facilities in Rio Nance, Honduras and the Caribbean.

Glenn and Greg Chamandy founded Gildan in 1984 with the achievement of a knitting mill
in Montreal, Quebec, Canada, to make cloth to supply the Harley Inc., the childrenswear
business previously owned by the family. It later extended to sell t-shirts made of 100% cotton
to wholesalers, which resold them to United States and Canadian screen-printers, to be decorated
with designs and logos. By 1994, Harley was closed in order to attention on the expansion of
what had become Gildan Activewear.

Gildan has factories in low pays countries like Honduras and Haiti, and that has allowed Gildan
to lower its price per shirt to below that of Chinese manufacturers as of 2006.

In 1997, Gildan opened its first offshore sewing facility. Located in Honduras, this plant
employed 1,200 workers and was vertically integrated. Within just a year, the company made an
initial public offering and was publicly listed on both the New York Stock Exchange and the
Toronto Stock Exchange.

Gildan became the United States’ leading wholesaler of 100 percent cotton t-shirts by 2001, and
the following year, the company opened a new facility in Honduras. Located in the city of Rio
Nancy, this facility handles knitting, bleaching, dyeing, cutting and finishing. The company
similarly opened its first large-scale distribution center in Eden, North Carolina in 2001. In 2002,
Gildan propelled its Biotop system, which treats wastewater using bacteria, gravity and sunlight
before recurring clean water back to the environment.
Bacground of Gildan activewear Bangladesh

 In 2010, Gildan invested $15 million in a Bangladesh company known as Shahriyar Fabric
Industries Limited. It complete this move in order to support planned development in Europe and
Asia. In May of 2012, Gildan acquired the Anvil Holdings, Inc. The parent company of Anvil
Knitwear, Anvil Holdings is well-known for manufacturing environmentally friendly, recycled,
bearable and organic clothing for infants, children and adults. The year 2012 was also a big year
for Gildan because they supported the Gildan New Mexico Bowl, which was played in
Albuquerque.

In first December 2012, Gildan began talking to the media about consecutively an ad during the
2013 Super Bowl. Part of a $25 million marketing movement headed by Devito/Verdi, the 30-
second ad aired during the third quarter.

Vision of Gildan

The vision declaration for Gildan Activewear Inc is its calculated plan for the future – it
expresses what and where Gildan Activewear Inc Company desires to be in the future. The
vision statement for Gildan Activewear Inc is a document categorizing the goals of Gildan
Activewear Inc to facilitate its strategic, managerial, as well as general decision making
procedures.
The vision statement of Gildan Activewear Inc is brief and to the point. This means that the
company has not used long dialects and dialogues to delivers its opinion ad stance to the public
and relevant stakeholders. The vision statement should be brief and comprehensive – it should
communicate the essence of the business, and its future plans to help the stakeholders understand
its business philosophy and business strategy.

Mission of Gildan

The mission statement for Gildan Activewear Inc is a public article that details the standards and
tactical aims of Gildan Activewear Inc. The mission statement of Gildan Activewear Inc also
classifies the purpose of the organization presence, highlighting the services and the goods it
offers. Moreover, the mission statement also recognizes the organization’s functioning goals for
Gildan Activewear Inc, the procedures the company uses to attain those, the target customer
groups, and the region where the company works.

2.2.1. Customer satisfaction

The mission statement of Gildan Activewear Inc focuses on addressing issues of customer
satisfaction. The mission statement of Gildan Activewear Inc has identified its target customer
groups, and also identified their needs and demands. The mission statement reflects on how its
products and services work towards increasing customer satisfaction for its target customers.
Board and Management
Corporate Strategy

What is SWOT Analysis?

 Strength weakness
Low cost structure. Internal corporate politics and nepotism
Skilled labor force. High employees turnover rate
Large scale vertically integrated supply chain Quality control
leading to enhance efficiency The company heavily relies on the small
Diversified portfolio on company owned number of customers.
brands. Market research.
Dependence on limited number of outside
suppliers

Opportunities Threats
Cheap and available skilled workers Fluctuating and volatility of the price of raw
Expansion of manufacturing capacity to materials for bargaining power of suppliers
increase sales, maintain competitive cost and Increasing competition
enhance diversification Exchange rate
Shift in consumer trends and preferences.
New entrants

Strength of Gildan activewear Bangladesh limited

 Low cost Structure: Gildan Activewear low cost structure helps it produce at a low cost
and sell its products at a low price, making it affordable for its customers.
 Skilled Labor force: Gildan Activewear has invested extensively in the training of its
employees that has resulted in it employing a large number of skilled and motivated
employees
 Large scale vertically integrated supply chain leading to enhance efficiency: Gildan
activewear Bangladesh is a leading integrated manufacture of basic apparel such as
 activewear underwear and hosiery products.vertically integration provide the company
strong oversight, enhance efficiency and reduce disruption.
 Diversified portfolio on company owned brands: Gildan Bangladesh diversified their
portfolio for market leadership such as George, Anvil, Alstyle, Silk, Secret American,
apparel and comfort color

Weakness of Gildan activewear Bangladesh limited

 Internal corporate politics and nepotism: In this organization nepotism to too much high
for local higher authority and unhealthy corporate politics.

 High employee turnover rate: Here higher employee turnover rate compared to
competitors. This means that it has more people leaving the job, and as a result, it is
spending more on training and development as employees keep leaving and joining.
The performance appraisal is not in a systematic manner. People are often not
appraised for their performance. This leads to lower work morale and lack of
promotion opportunities for employees.

 Quality Control: Gildan Activewear has a lower budget for its quality control
department than competitors. This leads to lack of consistency and the possibility
of damage to quality across its various outlets.

Opportunities of Gildan activewear Bangladesh limited

 Cheap and available Skilled workers: increase in education and training by

numerous institutes has increased the amount of skilled labor available within the
country. This means that if Gildan Activewear Inc is able to hire skilled labor, it
would have to spend less on training and development, therefore, saving costs.
 Expansion of manufacturing capacity to increase sales, maintain competitive cost and
enhance diversification: Company increase their new project more than 100 acre land
acquired in Nayarhat Savar Dhaka. Where they planned to make ecofriendly industrial
park.
Threats of Gildan activewear Bangladesh limited
  Exchange Rate: the exchange rate keeps fluctuating and this affects a company
like Gildan Activewear Inc that has sales internationally, while its suppliers are
local.
 Fluctuating and volatility of the price of raw materials for Bargaining power of
Suppliers: The bargaining power of suppliers has increased over the years with
the decrease in the number of suppliers. This means that the costs of inputs
could increase for Gildan Activewear Inc.
 New entrants: there have been numerous players that have entered the market
and are gaining market share by gaining existing companies’ market share. This
is a threat to Gildan Activewear Inc as it can lose its customers to these new
entrants.

Recommendation and conclusion

Conclusion
The main objective of the SWOT analysis is to help in identifying the strategies that can be used
by the company to build on its strengths, eliminate its weaknesses while making the most of
opportunities and countering threats.