Question

This is an extract describing a fashion house noted for custom-made gowns in Ghana. Use the case information to answer the questions that follow. Pistis is a Ghanaian based fashion house headquartered in Accra. The company currently stands at the frontline of the fast growing African fashion industry while making major strides on the international markets. Pistis, at the core, prides itself on creating master pieces for every client and, as result, has garnered a name as the leader in special occasion clothes. From their unique hand beaded bridal gowns to their creative use of African fabrics such as kente, the brand aims at making every woman standout as royalty in a Pistis gown. All clothing are specially made to order and the organisation does not stock clothing. There are minimum slots per month for the clothes that can be made so its best to confirm an order when you are certain with the dates to start the process. The organisation has only one facility in Ghana but has a website where orders can be placed online. Pisits was started in 2008 by Kabutey and Sumaya right after graduating from Vogue Style School of School and Design in Accra, Ghana. The brand was founded on a common vision of uniquely providing the perfect fit and style to a fast evolving woman who exuberates ambition, reveres culture and embraces innovation. By acknowledging the demand in the growing African and global market, the brand, through the years, has grown expediently by focusing on providing customers with the best service through rigorous product development in regard to originality and quality. Pistis has been featured in various shows such as the Runway Dubai Season III, Glitz Africa Fashion Week 2013, Radiance Bridal Show and headlining 3 seasons of the Vlisco Fashion Show in Ghana. In addition, Pistis has had the opportunity to dress the finalists for the Miss Malaika Pageant Ghana for 2012, 2013, and 2014 seasons. Through the years, Pistis has had the opportunity to dress dignitaries, celebrities, corporate executives, religious leaders and most importantly, the hardworking everyday woman.


a. If a key need of the customer segment the organisation aims to fill is increase rate of innovation, how would the key customer need identified influence the implied demand uncertainty? (3 Mark) b. Which capabilities of responsiveness (mention 2) does the organisation’s supply chain possess (use information from the case to explain why)? c. How can the organisation use the pricing driver to a. Match supply and demand b. Increase responsiveness c. Increase efficiency?

Answer 1

Answer a:

In order to apply the increase in the rate of innovation in the product, Pistis need to know the exact demand of the customers for the product and their specific needs so that Pistis can fulfil the demand of the customers. In case of uncertain demand, Pistis may not be able to identify the exact needs of the customer and they would not be able to implement the innovation within the given time period. This may result into the non fulfilment of the expectations of the customers which may bring down the brand image of Pistis.

Answer b:

Currently, the organisation fulfils the need of the customers when they order for the product to Pistis. Pistis does not store the finished apparels in its inventory. Hence, Pistis work on Just in time responsive strategy where the supply chain of Pistis begins when the customer places an order with Pistis.

Answer c:

a. Since, the demand for the products of Pistis is high; it can charge higher prices to its customers by ensuring that it still maintains its competitive strategy in terms of cost leadership.

b. Since the company is highly responsive in nature, it can charge high prices to the customer as per the delivery time desired by the customers. However, if Pistis charges less price to its customers, the demand for its products will be exceptionally high.

c. Higher prices of the product as a result of higher demand will lead to the higher revenue generation. This will result into increase in the efficiency of the company as a result of motivation derived from the increased sales.