MIT Swot analysis of uniqlo, O. Stable free cash flow provides opportunities to invest in adjacent product segments. This brand portfolio can be extremely useful if the organization wants to expand into new product categories. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies.
Certain capabilities or factors of an organization can be both a strength and weakness at the same time. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies.
Opening up of new markets because of government agreement — the adoption of new technology standard and government free trade agreement has provided UNIQLO an opportunity to enter a new emerging market. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets.
Swot analysis of uniqlo, Competitive Strategy New York: Williamson, Markets and Hierarchies New York: It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical. Free Press, ; L. Government green drive also opens an opportunity for procurement of UNIQLO products by the state as well as federal government contractors.
Reliable suppliers — It has a strong base of reliable supplier of raw material Swot analysis of uniqlo enabling the company to overcome any supply chain bottlenecks. New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future.
Chandler, Strategy and Structure Cambridge, Mass.: It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
It provided an evaluation window but not an implementation plan based on strategic competitiveness of UNIQLO SWOT is a static assessment - analysis of status quo with few prospective changes. This is one of the major limitations of SWOT analysis.
Free Press, A. Automation of activities brought consistency of quality to UNIQLO products and has enabled the company to scale up and scale down based on the demand conditions in the market. As mentioned earlier even though UNIQLO is successful at integrating small companies it has its share of failure to merge firms that have different work culture.
SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. Secondly the supply of new products is not regular thus leading to high and low swings in the sales number over period of time. Liability laws in different countries are different and UNIQLO may be exposed to various liability claims given change in policies in those markets.
As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix.
Limitation of Weighted SWOT analysis of UNIQLO This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically. With more cash in bank the company can invest in new technologies as well as in new products segments.
Successful track record of developing new products — product innovation. Strong distribution network — Over the years UNIQLO has built a reliable distribution network that can reach majority of its potential market.
Strategy is about making choices and weakness are the areas where an organization can improve using SWOT analysis and build on its competitive advantage and strategic positioning. Days inventory is high compare to the competitors — making the company raise more capital to invest in the channel.
Not highly successful at integrating firms with different work culture. Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors.
This lack of choice can give a new competitor a foothold in the market. A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines.
Right now the investment in technologies is not at par with the vision of the company.
There are gaps in the product range sold by the company. Need more investment in new technologies. For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors.
High attrition rate in work force — compare to other organizations in the industry UNIQLO has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
Given the scale of expansion and different geographies the company is planning to expand into, UNIQLO needs to put more money in technology to integrate the processes across the Swot analysis of uniqlo.
Lower inflation rate — The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of UNIQLO. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in.SWOT Analysis 1) Strengths UNIQLO was deemed successful because of its commitment in divergence which supports the individuality of each family member as well as those with fashion-forward and edgy people.
Uniqlo SWOT Analysis. Strengths. 1. Uniqlo is Japan's leading clothing retail chain in terms of both sales and profits. killarney10mile.com company also operates innearly 15 countries worldwide. killarney10mile.com very discounted prices which increase footfall in store.
killarney10mile.com presence in international market. 5. Uniqlo had begun outsourcing their clothing. Chapter 7 SWOT Analysis Strength · Production Regions – The largest percentage of merchandise sold in UNIQLO business operations, which are the core activity of the Group, is manufactured in China and other countries in Asia and then imported into Japan.
For this reason, in the event that major changes occur in the political. This is the SWOT analysis of Uniqlo. Uniqlo is a Japanese fashion brand which has pan-global popularity. Uniqlo which is a fully owned subsidiary of Fast Retailing Co Ltd, is a specialist in casual clothing.
As of the year Uniqlo has a chain of stores spread across 20 countries. SWOT analysis is a vital strategic planning tool that can be used by UNIQLO managers to do a situational analysis of the company.
It is a useful technique to understand the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) UNIQLO is facing in its current business environment.
Analysis (Strengths, Weakness, Opportunities, Threats) SWOT Analysis is a useful technique for understanding the Uniqlo strengths and weaknesses, and for identifying both the opportunities open and the threats Uniqlo faces.Download