ii Automation of activities brought consistency of quality to UNIQLO products

Ii automation of activities brought consistency of

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ii) 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
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market and has been the company’s strength but doesn’t provide the brand a competitive edge as all its competitors have also been doing. iii) Successful track record of developing new products and product innovation is one of the specialities and uniqueness of Uniqlo. This strategy exists to strengthen the image of Uniqlo as the designer and product team works out ways to find out new and innovative products. However in the apparel industry, innovation and copying goes hand in hand. iv) Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. v) Strong distribution network – Uniqlo controls most of the supply chain and distribution of the products from its headquarters. Over the years UNIQLO has built a reliable distribution network that can reach majority of its potential market. vi) Strong Brand Portfolio – The brand and therefore over the years UNIQLO has invested in building a strong brand portfolio. viii) Strong dealer community – It has built a culture among distributor & dealers where the dealers not only promote company’s products but also invest in training the sales team to explain to the customer how he/she can extract the maximum benefits out of the products. WEAKNESS OF UNIQLO i) Not highly successful at integrating firms with different work culture. 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. As mentioned earlier, the problem in apparel industry is that it is very easy to copy each other‘s designs. This weakness is one of the toughest to deal with. Besides Uniqlo, there are a lot of other brands that reach the international market that also build an exclusive image for them self. Therefore sometimes public cannot differentiate products from Uniqlo and their competitors. In other words, it is going to be easy for them to switch from one brand to another. ii) High attrition rate in work force compare to other organizations in the industry UNIQLO has a higher attrition rate h they spend a lot more compare to its competitors on training and development of its employees. iii) Days inventory is high comparison to the competitors – making the company raise more capital to invest in the channel. This can impact the long term growth of UNIQLO. Limited success outside core business as even though UNIQLO is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.
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  • Fall '17
  • Prof. Gautam Saha

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