Gobi Background information - Business Strategy Assignment

Internal Code: MAS5945

Business Strategy Assignment:

In recent years, the company used its net profit for direct investment of management and equipment, which made the “Gobi” JSC cashmere sector leading top company that has an advanced modern technology. Between 2009 and 2015, Gobi; JSC has been constantly upgrading its industrial capacity and its latest upgrade was the installation of new whole garment knitting machine, a machine that knits products without any stitches. In 2015, the company introduced new Gobi-Mongolian Organic Cashmere Brand that is made in natural goat cashmere colours instead of using bleach and colouring. In September 2015, the company was revalued and as a result, the value of its immovable properties was increased by MNT 6.27 billion. The management structure of the company consists of 10 members—Board of Directors and the CEO. Current Board of Directors was elected at 2015 AGM and consists of 9 members, of which 5 are independent. The CEO of the company is Baatarsaikhan Tsagaach. The decision-making process of “Gobi” JSC’s management team is making an important contribution to the growth of sales income and the company market share in the domestic market. As for wool industry sector, in 2016, Mongolia produced 23,010 tons of wool, of which domestic industries purchased 91.7 of total wools and deep processing was done for 60 percent of it to produce end products of MNT 331.0 billion. Of which, 4,035 tons of raw cashmere and 630.0 tons of combed cashmere and more than 300 thousands of knitted products with a total amount of more than MNT 300 billion products were exported. The company is insensitive to the exchange rate fluctuation, in other words, the effect of local currency depreciation to the sales income is low. Sales in the foreign market account for 39 percent of total sales income of “Gobi” JSC, of which knitted products account for 63 percent. Questions: 1) What is the market size? 2) Tax tariff of the cashmere product import 3) Segmentation, target audience, positioning, price, 4) Who are their competitors 5) Must have relevant data 6)Action plan for next 5 years