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Uniqlo Swot Essay

334 words - 2 pages

SWOT:
INTERNAL ENVIRONMENT
STRENGTH
• UNIQLO is Japan’s leading clothing retail chain in terms of both sales and profits.
• The company also operates in nearly 15 countries worldwide
• Discounted prices but decent quality product
• Strong presence in international market
• Outsourcing their clothing manufacturing to factories in China where labor was cheap, a well-established corporate practice
• A strong workforce of over 30,000 employees
• Very accessible website
• High quality product
• Expertise in distribution and store development
• Expertise in inventory control
• High ...view middle of the document...

planning, production, quality control, distribution, sales and sales promotion activities

WEAKNESSES
• Despite being a popular brand it has a limited brand recall
• Product variety and launching based on the four seasons
• Bargaining power of customers high hence brand switching affects value
• Import tax and currency conversion causing higher costs

EXTERNAL ENVIRONMENT

OPPORTUNITIES
• Brand image
• Brand awareness
• Access social media and viral advertising to start two-way communication with customers
• Emerging trends in apparel market
• Use global portion of the business to expand their business activities
• Increase global presence
• Innovations in information technology can increase the speed in which information travels throughout the world
• Low-price apparel market remains underdeveloped in Japan, presenting a huge business opportunity
• Free trade zone has grown and the fashion and apparel markets have become increasingly borderless

THREAT
• Domestic and global market are increasing with competition
• Brand switching could happen easily as only concentrated target segment for clothing
• Regulation in certain countries for FDI slow aggressive growth
• In the event of a major change in the political, economic and/or legal environment and natural disasters are experienced in China or other producing countries, this may have an adverse impact on business results

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