History of Ammar Textile Limited

Ammar textiles limited were incorporated in September 1981 and Mr. Bilal was the

first Managing Director of it. With the help of textile engineer Mr. Tom Tongue and

Ms. Zina Roworth, A British designer Mr. Bilal select various knitting, dyeing and

finishing machines.

Meanwhile for success Mr. Bilal invest on their employees, Mr. Yasir Waheed was

selected for this project and he obtained degree of Textile Designing from UK.

Mr. Tom Tongue worked with Ammar Textile on a contract for two years as General

Manager of Production. During this period he helped Mr. Bilal in training of

employees as well as preparing designs for first domestic market offer.

Keeping the trend of “Quality Conscious People” Ammar Textiles Company Limited

target their Market upper class of Society but there is a threat from strong brands in

market with verity of product and heavy advertisement like Omega, Bonanza and

Oxford.

With vigorous advertisement approach, Ammar Textile use the electronic media. i.e

(Pakistan Television PTV) and print media they launched their first summer

collection in June 1983. But unfortunately the product was failed to gain the trust of

public due fabric color.

In 1984 “Ammar Textile” name was established as a producer of good quality textile

products, on the bases of their good quality they are offered their products for export

but management declined by saying that they want to stable first before exports.

In the end of 1984when Mr. Yasir return, the idea of exports was once again came

into mind at that time some well establish competitors were already exporting their

products to Europe. By maintaining strict employee training the become able to meet

British Textile Standards.

By the mid of 1985 (ATL) gain the trust of international market as they just get

samples to manufacture according to these, for smooth running of Export Operations

Individuals were hired form the market.

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In 1985, they received a letter from the vice president of Harper Industries saying that

they were interested in doing business with ATL. A Meeting of top management was

called so as to discuss various issues and concerns regarding Pricing, Shipment and

Capacity utilization in this regard.

Strategies used in this Case Study

In this case study corporate level strategy is used

Corporate level strategies

Managers at the top level of the organization are responsible for corporate level

strategies

Types of Corporate Strategies

There are three main categories of corporate strategies, growth, stability & renewal.

First of all Stability Strategy is used, as Ammar Textiles limited wanted to get on a

firm footing before taking up exports. This phase of stability is of long period.

After becoming stable, Ammar textiles limited moves towards Renewal Strategy.

Renewal Strategies

The decision of exporting goods turned the ATL strategy towards renewal strategy.

Turnaround: Addressing critical long-term performance problems through the use of

strong cost elimination measures and large-scale organizational restructuring

solutions. This is used when the organizational problems are more serious and critical

After Renewal strategy, Ammar textiles limited move towards Growth Strategy.

Growth Strategies

A strategy that seeks to increase the organization’s business by expanding the number

of products offered or market served. By pursuing the growth strategy, the

organization may increase sales revenues, employees, market share.

In Growth Strategy, Concentration is adopted.

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Concentration: Focusing on a primary line of business and increasing the number of

products offered or markets served.

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Questions of the Case Study

Q.1. Do the SWOT analysis of this Case Study

Strengths

i. Hiring of professionals from abroad, those who have a vast experience in

textile industry to get strong position.

ii. Emphasis on employee training & development and giving them opportunity

to study abroad and get higher education according to work requirements and

demands

iii. By Training of local employees Ammar Textiles can now compete with

international competitors and British Institute of Textiles Standards any time.

iv. Due to intensive market Research and Development efforts, the product

quality and price was fine tuned and distribution system was also streamlined.

v. By using the latest technology in machines, they were able to fulfill the orders

satisfactorily which gave them an edge over their competitors.

vi. Target market middle and upper middle class, mostly youngsters who are

college students both boys and girls as well as who prefer better quality.

vii. Egyptian cotton was used in the summer collection which was rated as of the

highest quality by the customers.

viii. Due to Lower Labor Cost in Pakistan, they can price their products 10% to

30% below their International competitors.

ix. Cost affective availability of high quality Cotton and Raw material in Pakistan

provides Ammar Textiles Ltd with an advantage over its international

competitors.

x. Fashion shows and presentations to potential buyers were arranged in New

York.

xi. International quality packing, documentation and other formalities of

exporting business were learnt to which other organization does not give

importance.

xii. Being Quality conscious AMMAR Textiles Limited earned a good name in

the production of good quality of fashion wear only in 2 years of its

incorporation.

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Weakness

i. In start prices were high due to the wrong estimation of the buying power of

their target market as a result prices were cut down to 40%.

ii. Colors of the products offered in the first summer collection, were not fast and

tended to bleed.

iii. External weakness is that all over the Pakistan there is weak link in production

and quality control.

iv. Capacity constraints

Opportunities

i. Both Domestic and International Market have a strong demand of high quality

Knitwear products from Pakistan.

ii. Consistency in Product Quality

iii. Assurance of Technical competency

iv. Reliability in Timely delivery

v. Launching of products International market

vi. Successful meeting with the VP of Harper Industries can take Ammar Textiles

Ltd. to new heights.

Threats

i. Other brands in market were doing heavy advertisement.

ii. Omega, Bonanza, Oxford had many times higher turnover as compared to

Ammar.

iii. Other Brands had a well established distribution system.

iv. Competition with international competitors/market

v. Shortage of Time and logistics problems

vi. Pricing issue as compared to Hong Kong, Italy or Spain

vii. Shipment and Capacity utilization issues

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