iv it is an important factor to remain ahead of the competitors in the fashion

Iv it is an important factor to remain ahead of the

This preview shows page 4 - 7 out of 10 pages.

iv) it is an important factor to remain ahead of the competitors in the fashion apparel industry mostly therefore it is an important factor into, UNIQLO needs to put more money in technology to integrate the processes across the board.
Image of page 4

Subscribe to view the full document.

Threats for Uniqlo i) The rising raw material cost has been considered an important factor that can pose a threat to the UNIQLO profitability , it’s a major threat that can hamper UNIQLO’s Profitability. ii) Imitation of the counterfeit and low quality product is also a threat to UNIQLO’s product especially in the emerging markets there is a risk of UNIQLO‘s products being copied, either by their competitor (the designs) or by irresponsible people that practice counterfeiting. Moreover, Uniqlo‘s consumers are popularly known as loyal consumers to the brand. iii) Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors iv) The company has developed numerous products but those are often response to the development by other players. Secondly the supply of new products is not regular thus leading to high and low swings in the sales number over time. v) New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future which poses as a serious threat for UNIQLO’s growth. vi) Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of UNIQLO if not taken care of. vii) Intense competition is one of the biggest threats because of the new and affordable products from different stores and other competitors in terms of consumers’ loyalty. Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales. Opportunities for Uniqlo i) The new technology provides an opportunity to UNIQLO to practices differentiated pricing strategy in the new market It factor enables the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions. ii) Decreasing cost of transportation is an important factor because of lower shipping prices can also bring down the cost of UNIQLO’s products thus providing an opportunity to the company - either to boost its profitability or pass on the benefits to the customers to gain market share. iii) Government green drive is an interesting initiative though the implementation is difficult. But it also opens an opportunity for procurement of UNIQLO products by the state as well as federal government contractors. iv) The market development will lead to dilution of competitor’s advantage and enable UNIQLO to increase its competitiveness compare to the other competitors .
Image of page 5
v) Lower inflation rate – The low inflation rate bring more stability in the market, enable
Image of page 6

Subscribe to view the full document.

Image of page 7
  • Fall '17
  • Prof. Gautam Saha

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes