Table of Contents

1. company profile ............................................................................................................................ 1-2

2. Defination of IFE & EFE Matrix......................................................................................................... 3

3. Strengths, Weaknesses, Opportunities, Threats (SWOT) Matrix .................................................... 4

4. IFE Matrix ......................................................................................................................................... 5

5. EFE Matrix ........................................................................................................................................ 6

 COMPANY PROFILE

Arvind Lifestyle Brands Limited owns and operates apparel retail stores in India. The
company owns value retail chain Megamart and a slew of international and local brands,
such as Gant, Arrow, US Polo, Elle and Flying Machine. The company was formerly
known as Pinnacle Risk Advisory Services Limited and changed its name to Arvind
Lifestyle Brands Limited in September, 2008. The company was incorporated in 1995 and
is based in Bengaluru, India. Arvind Lifestyle Brands Limited operates as a subsidiary of
Arvind Ltd.
Arvind was once considered a non-serious apparel brand and retail player after it sold its 40
per cent stake in its joint venture with VF, thereby letting go of the Lee and Wrangler
brands. But the textile conglomerate has come a long way since then evident from its
decision last month to acquire the India operations of international apparel brands
Debenhams, Next and Nautica. The three global brands have added a few more feathers to
Arvind Lifestyle Brands, subsidiary of Arvind Ltd, which already boasts of an impressive
kitty comprising Tommy Hilfiger, US Polo Assn., Elle, Geoffrey Beene, Arrow and the
likes. What's more, acquiring the business operations of Debenhams also means Arvinds
foray into the department store segment.
Most companies these days are investing in being a brand footprint player and Arvind is
one of them. It already has its own brand. This acquisition is in tandem with Arvinds
vision to be such a player, says Harish Bijoor, CEO of Harish Bijoor Consults Inc.
This should not be difficult for Arvind, given the experience it has in managing the Indian
franchise of international brands. For instance, in the mass sportswear segment, the
company already claims to be a market leader with brands like Ruggers and Cherokee
which it sells in Megamart. Add to that, Arvind is gaining ground gradually with brands
like Arrow Sport, Izod and USPA in the premium segment and Gant in the super premium
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segment. Nautica will be an addition to our sportswear portfolio in the super premium
segment. Arvind has a strong presence in menswear and value retail.

In fact over the last three years with a CAGR of 38 per cent, Arvind is the fastest growing
company in the apparel brands and retail space. The 38 per cent CAGR in apparel brands
and retail space is one of the fastest growth figures in an industry that is growing by 20 per
cent. According to Wazir Advisors, a retail and management consulting firm, of the total Rs
200,000 crore worth apparel retail market in 2011, about 50 per cent is branded, wherein
the share of international brands is growing.

Initially, indigenous brands like Color Plus began well in India. However, it takes a lot of
time in building indigenous brands in the country. Hence, developing a portfolio of
international brands seems to be the obvious choice. Moreover, in mid-premium and
premium segments, international brands will rule in the time to come. If one wants to be
present in this segment, inorganic growth is the only way, asserts Prashant Agarwal, joint
managing director, Wazir Advisors.

While its peers Reliance and Madura have also been engaged in building international
apparel brands portfolio, Arvind, say experts, is much fitter to do the same. It doesnt
matter whether one is in mens, womens or kids wear segment if you have the expertise
to acquire and manage an international apparel brand franchise. And Arvind is adept in it.
Since some years now, the Arvind Brands team has gained expertise in logistics, design,
supply chain, sourcing, product development, front end management and retail store
management - things that are necessary to run a global apparel brands portfolio, adds
Agarwal.

Arvind Brands & Retail is a wholly owned subsidiary of the Rs 4000 crores Arvind Ltd
group (a company listed at the BSE), which is a global leader in development and
production of textiles. Being a part of India's largest integrated Textile Company, which
operates across the entire value chain from design to fabric, Arvind Brands & Retail has its
footprints strongly held both in the domestic as well as in the international market.

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EFE Matrix.

it is a strategy tool used to examine companys external environment and to identify the available
opportunities and threats.When using the EFE matrix we identify the key external opportunities
and threats that are affecting or might affect a company. we get these factors from by analysing
the external environment with the tools like PEST analysis, Porters Five Forces or Competitive
Profile Matrix.

IFE Matrix.

It is a strategy tool used to evaluate firms internal environment and to reveal its strengths as well
as weaknesses. Strengths and weaknesses are used as the key internal factors in the evaluation.
When looking for the strengths, ask what do we do better or have more valuable than our
competitors have ? In case of the weaknesses, ask which areas of our company could improve
and at least catch up with our competitors ?

Weights :Each key factor should be assigned a weight ranging from 0.0 (low importance) to
1.0 (high importance). The number indicates how important the factor is if a company wants to
succeed in an industry. If there were no weights assigned, all the factors would be equally
important, which is an impossible scenario in the real world. The sum of all the weights must
equal 1.0.

Ratings :The meaning of ratings is different in each matrix, so well explain them separately.

EFE Matrix. The ratings in external matrix refer to how effectively companys current strategy
responds to the opportunities and threats. The numbers range from 4 to 1, where 4 means a
superior response, 3 above average response, 2 average response and 1 poor response.

IFE Matrix. The ratings in internal matrix refer to how strong or weak each factor is in a firm.
The numbers range from 4 to 1, where 4 means a major strength, 3 minor strength, 2 minor
weakness and 1 major weakness. Strengths can only receive ratings 3 & 4, weaknesses 2 & 1.
The process of assigning ratings in IFE matrix can be done easier using benchmarking tool.
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 Strengths, Weaknesses, Opportunities, Threats (SWOT) Matrix:

STRENGTH
1. Strong portfolio of domestic and
international brands.
2. Identifiable corporate name with a
good reputation.
3. strong sales and service network.
4. Wide geographical presence.
5. Qualified and trained personnel.
6. Strong brand name.
WEAKNESS
1. Lack of fresh ideas
2. Presence in only big cities
3. Not doing enough to build brand
equity.
4. Low presence in tier 2 and tier 3 cities.
5. Little promotion and advertisement.

OPPORTUNITIES THREATS
1. Changing retail scenario 1. Competitors like levies ,wrangler ,
2. Rapid growth in age group of 15-44 Louis phillipe etc.
years 2. Cheap imports from China, Thailand,
3. Aggressively enter in the Tier 2 and Bangladesh
Tier 3 cities. 3. Raw Material Cost increasing
4. Sourcing fabrics from Low Cost Continuously
Countries 4. Competition Rises from
5. Market expected to be more competitors brands.
profitable till 2020. 5. Labor Cost Increase in importing
countries.
6. Implementation of new tax policy.

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 IFE MATRIX

STRENGTH

Key Internal Factors Weight Rating W. Score

1.Strong portfolio of domestic and 0.12 4 .48

international brands.
2.Identifiable corporate name with a good 0.09 4 0.36
reputation.

3.strong sales and service network. 0.07 3 0.21

4.Wide geographical presence. 0.1 4 .4

5.Qualified and trained personnel. 0.09 3 .27

6.Strong brand name. 0.06 3 0.18

WEAKNESS

1.Lack of fresh ideas 0.1 1 .1

2.Presence in only big cities 0.06 2 .12

3.Not doing enough to build brand equity. 0.17 1 .17

4.Low presence in tier 2 and tier 3 cities. 0.06 1 .06

5.Little promotion and advertisement. 0.08 2 .16

Total 1.00 2.51

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 EFE MATRIX

OPPORTUNITIES

Key External Factors Weight Rating W. Score

1.Changing retail scenario 0.15 3 0.45

2. Rapid growth in age group of 15-44 years 0.15 4 0.60

3. Aggressively enter in the Tier 2 and Tier 0.10 3 0.30

3 cities.
4. Sourcing fabrics from Low Cost 0.10 2 0.20
Countries
5. Market expected to be more profitable 0.10 3 0.30
till 2020.

THREATS

1. Competitors like levies ,wrangler , 0.10 1 .10

Louis phillipe etc

2. Cheap imports from China, Thailand, 0.05 2 .10

Bangladesh.

3. Raw Material Cost increasing 0.05 2 .10

Continuously

4. Competition Rises from competitors 0.05 3 .15

brands.
5. Labor Cost Increase in USA 0.07 2 .14

6.Implementation of new tax policy. 0.08 2 .16

Total 1.00 2.6

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