SWOT Analysis

Topics: United States dollar, Flagship, Retailing Pages: 8 (1353 words) Published: November 18, 2014
SWOT Analysis

 

STRENGTHS

 Highly Efficient store operation

 Expertise in inventory control

 Expertise in distribution and store development

 Global materials procurement

 High quality products

 Devotion to low-cost management and the direct coupling of production and sales at the fastest possible speed and lowest possible cost (Fast Retailing Annual Report, 2005).

 Directly engages in all product planning, production, quality control, distribution, sales and sales promotion activities (Fast Retailing Annual Report, 2005).

 UNIQLO products are inspired and shaped by a great variety of information such as customer opinions and market trends around the world (Fast Retailing Annual Report, 2005).

 UNIQLO stores offer comprehensive selection of men’s wear, women’s wear and clothing for children and infants, making them the ideal spot for families of all ages to shop (Fast Retailing Annual Report, 2005).

 

WEAKNESSES

 UNIQLO entered the American market in 2005. Analysts argue that the most difficult adjustment for the Japanese Apparel Retailer is the very thing that made it a huge success in Japan – its focus on basic rather than cutting edge clothes. American consumers differ from their counterparts in Japan. American consumers demand more than the basics. Analysts believe that one of UNIQLO’s weaknesses is its limited fashion elements (Roberts, 2005).

 Corporate Acquisition – Fast Retailing engages in Merger and Acquisition (M&A) activities as one of its management strategies for the expansion of its operations. Through these activities, the Group seeks to pursue synergies with companies and operations that are the objects of its M&A activities and optimize its business portfolio, thereby aiming to maximize the Group’s business value. However, in cases where the Group is unable to realize the expected profit and benefits of M&A activities, this could have an adverse impact on the business results.

 

OPPORTUNITIES

 Emerging trends in the fashion and apparel markets; companies operating in the global arena are expanding their business activities

 Free trade zone has grown and the fashion and apparel markets have become increasingly borderless

 Globalization has spurred greater simultaneity in fashion trends around the world; trends spread like wildfire around the globe

 Innovations in information technology have increased the speed with which information travels throughout the world

 Low-price apparel market remains underdeveloped in Japan, presenting a huge business opportunity

 

THREATS

 Intense Competition – In each of its businesses, the customers of the Group are consumers who are always highly discriminating about merchandise, services and price, and the Group engages in tough competition with other companies in its industry in Japan and overseas (Fast Retailing Annual Report, 2006).

 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, economic and/or legal environment and natural disasters are experienced in China and other producing countries, this could have an adverse impact on business results (Fast Retailing Annual Report, 2006).

 International Operations – UNIQLO operates in the UK, China, Hong Kong, the United States and South Korea. If the Group is unable to deal with the uncertainties of changes in market needs and product trends in its overseas markets or if economic fluctuations occur, political and economic conditions become turbulent, or changes occur in legal regulations and/or other conditions, these could have an adverse impact on business results (Fast Retailing Annual Report, 2006).

 Foreign Currency – The...
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