STRENGTHS

1) ISO Certification:
Al-Karam Textiles have received ISO 9000, as well as ISO 14000 certifications from internationally
renowned ISO auditors. This is a big strength because the existence of non-harmonized standards for
similar technologies in different countries or regions can contribute to so-called technical barriers to
trade.
2) State of the art equipment
Al Karam Textiles have imported the latest machinery from Europe. Their machinery comprises of
equipment used in spinning and weaving. They use the latest type of loom. Therefore, their products are
capable of meeting international standards of weaving, dyeing and printing, for example using dyes that
do not irritate the skin.
3) Brand Name
Al-Karam Textiles have established a big name for themselves in the textiles and garments industry. Their
brand name is very strong in the Pakistani mass and industrial market as well as some industrial buyers
in the USA and Europe. Their brand name has a lot of appeal in the Pakistani mass market and they have
very loyal customers, who trust the quality of design and the quality of the cloth itself.
4) Availability of cheap labor
Although their workers are paid better than other workers in the same industry, their wage rate is still
much lower than what workers get in other countries. This, coupled with their modern machinery, gives
them the competitive edge over rival firms in the global marketplace.
5) Access to high quality cotton (in short staple category)
Al-Karam Textiles produces yarn for its fabrics, as it has a composite spinning unit. This basically means
that it makes its own thread, uses that thread to produce the cloth and use that cloth to make finished
items like bedsheets, towels and clothes etc.
6) Own Power Generation
Al Karam Textile Mills are powered by their own 6.4 M Watt Generator and hence are not dependant on
KESC power supply. Power costs in the country, especially in Karachi are among the highest in the world
also load shedding plays havoc with production schedules.

Weaknesses
1).Weak Information Systems
Al-Karam Textiles is an established textile company, which has excellent production facilities. They have
excellent machinery and CAD/CAM systems. But it is still conventionally operated most of the emphasis
is on machine and worker efficiency. They still have not progressed to the information systems, which can
help their cause in the international arena.
2). Seth culture
The work culture in Al Karam textiles is like that of a traditional Seth owned company. There is no little
formal documentation in the offices, the people are hired on an ad-hoc basis, qualifications are not taken
into account while selecting the people for their jobs, and the growth of the company is dependant on the
wishes and whims (the personal vision) of the Seth. In these cases, it is hard to separate the owner from
his company. The Seths personality decides the future path of the company.

3). Weak R&D facilities

There is hardly any investment in research and development in the Al Karam Textiles, or indeed in any
other Pakistani industry, which puts Pakistani textile companies at a significant disadvantage in the world
forum. Pakistans main competitors, India and China, on the other hand have been investing heavily in
BMR for a longer period of time and so have infrastructure already in place to exploit the situation that is
expected to arise in 2005 with the abolishment of quotas.
4). Lack of HR development
Modern technology in the textile sector requires educated and trained technicians. Similarly, modern
management techniques are a major need, particularly in areas of Marketing, Finance and Human
Resource Management.

Opportunities

Big opportunities in the local low-end market

International brand of designer wear

Threats

Political/Economic Instability

Piracy of designs

Brand name infringement

Tough international and national competitors

Lack of conducive environment for business

Absence of quota under WTO

Anti-dumping laws

Uncertainty of Cycle