What is the vision and mission of Moderna Textiles?

- What are the economic, social, political, and technological factors affecting
the textile industry at the time of the case?
- Why is the Syrian and Jordanian textile industries competitive compared to
the Egyptian textile industry?
- How can Moderna Textile expand and where? What are the strategies that it
can follow in expansion?

Vision Statement
Moderna Textiles seeks to be a high-quality, higher-end industrial textile
producer at competitive prices in the Middle Eastern market.
Mission Statement
Moderna Textiles is a high-quality producer of textile fabrics, upholstery and curtains
products, seeking expansion into Syria and Jordan from its present
manufacturing and marketing base in Egypt.
Economic factors affecting the textile industry are
The textile sector in Egypt contributes in the economic growth as it
has a share of 27% of total manufactured production in Egypt and
around 3% of GDP making it the third largest contributor to GDP
after tourism and Suez
Canal. In the period
2005-2010, the
industry on average contributed by 18% to industrial value
added,
and by 28% of total non-oil exports.
Social Factors
In the social aspect, the stratifi cation of textile consumption was
mainly defi ned by economic wealth; while linen has been universally
consumed by all walks of people, silk or certain types of wool
products were available for the rich and the nobility.
The textiles industry has been also a major employer ranking the
fi rst together with the food processing industry as the largest
industrial sector employers.
Estimates number of worker is between 400,000 thousands and 1.2
million direct labor and between 800,000 thousands and 1.2 million
in related sectors The industry is also the largest contributor to
wages
in the
industrial sector representing
around the
quarter of wages paid the textiles industry absorbs around 20% of
the industrial labor force.
Technological eff ect
The public sector textile companies have a lot of inherent problems;
the old machinery, outdated technology is the major problems.
Consequently, almost all clothing exporters import raw materials
from abroad and losing the competitive advantage of using high
quality Egyptian cotton.
In addition, the limited marketing and R&D capabilities enhanced
the sectors trouble.

Political Factors aff ecting the textile industry are

While Egypt focused on producing and trading raw cotton before 1950, the
focus of Egyptian textile industry moved to production of woven cotton fabric
and other types of textiles after 1950
Nationalize textile industry was by Gamal Abdel Nasser in 1960s then the
new regime based on military power persecuted demonstrations of trade
unions of textile industry, many textile unions changed their mind to become
a good cooperator of the Nasser regime. At the end, leftist trade unions were
almost ousted, trade unions being apparatus of state-planned economy, and
finally the entire textile industry was nationalized under direct control of
Egyptian government.
by the 1970s the state encouraged private enterprises, and in the 1990s the
governmental control over textile unions became lenient.
The government has stopped investing in this sector since the early
1990s as it slated the fi rms for privatization.
The Syrian and Jordanian textile industries competitive
compared to the Egyptian textile industry for the following
points
1. Continuous demand for high-quality industrial and high-income

home fabrics such as curtains and upholstery.

2. The existing prices for European imports of upholstery and curtains

into the Middle East are much higher than the prices for similar
products by Moderna.
3. Prices in Jordan are much higher for the same quality products as in
Egypt, which is Modernas manufacturing and distribution base.
4. Syria is as labor-intensive as Egypt, the original manufacturing base
of Moderna
5. Potential Syrian customers place high value on quality.
6. The Jordanian government encourages exports to U.S. fi rms through
QIZ and FTA.
7. The textile industry in Syria accounts for 30 percent of industrial
employment.
8. The industry in Egypt constitutes 25 percent of the countrys non-oil
exports.
9. The textile industry in Jordan is focused on apparel, and imports
upholstery.
10.
There is scope for expansion of the business and for improving
production efficiency.
Moderna Textile can expand by fi rst make an aggressive
competition with Lebanese textile company WARDA and expanding
its operations overseas to the USA, and in the process, continue to
market high-quality textiles at reasonable prices for the currently
high-priced Middle Eastern and European markets

Then begin to invest in Jordan only to take the benefi t of the QIZ
and FTA.
Moderna have the opportunity to make a high market growth with a
very competitive position in the market which conclude to a
competitive strategy could be followed to expand in the new
market.