logo

Economics- Assignment (Solution)

   

Added on  2021-06-17

8 Pages1826 Words38 Views
Running head: ECONOMICS ASSIGNMENTEconomics assignmentName of the student:Name of the University:Author note

ECONOMICS ASSIGNMENT1Introduction:Characterized by a variety of competitive supply chains, niche endeavours anddifferent business models, fashion industry is one such sector that makes up a major portionin the global apparel and textile industry (Anwar, 2017). With the rise of the globalisation,firms are becoming highly mobile and the industry has been spreading all around the world atthe speed of rocket. One such brand is Uniqlo who have capitalized on their capability tofabricate apparel that reflect the latest trend at a reasonable price to become a major player inits respective field. Uniqlo, introduced back in 1984 in Japan is now a global brand, which isknown for its outstanding products and services (Uniqlo.com, 2018). The brand not onlyoperates in the Japan, rather it has expanded its business to the various places like London,Europe, USA, and other places in Asia too making it a global apparel brand (Caro &Martínez-de-Albéniz, 2014). With their superiority product the brand has become a famoushigh quality fashion brand in the Australia and this essay is aimed to analyse the market ofthe same for the Uniqlo. Through this essay, it will portray the market knowledge of the firmand considering the market structure, it will highlight the short run and long run profits inorder to depict its sustainability. Number of sellers and market structure:Uniqlo is one of the fastest growing retailing group in the fashion industry, which isoften acknowledged as the most successful brand in the world at present (Schulz &Stockmann, 2016). With their vast global expansion since 2001, the brand has marked itselfas one of the market leader that has potential to operate both in the US and the UK market,considering the differentiated demand structure of both the states. Presently Uniqlo has beenoperating in Oceania region too in order to keep up their pace to become global. In Australiait is accounted as one of the largest apparel brand that has vast amount of potential to becomethe market leader (Liu, Liu & Fan, 2017). Considering the market structure of the apparel

ECONOMICS ASSIGNMENT2industry in the Australia, it can be said that the brand operates in oligopoly market, where thearch rivals of the brand are GAP, American Apparel, Zara, Benetton, H&M, United Coloursand others (Anwar, 2017). In Australian apparel industry, there are almost seven to eightlarge market players that makes it an oligopoly market. Market knowledge:As it has been observed from the apparel industry of the Australia has moderatenumber of market players that makes the marker oligopoly in nature. Under this scenario,market knowledge is incomplete, where the sellers do have complete information regardingtheir market demand, whereas, the buyers do not have the information regarding the bestprice in the market (Bischi, Lamantia & Radi, 2015). On the other hand, in oligopoly market,market competitors do not have proper information regarding their rivals that makes thedecision of one firm related with the other. Market entry and exit:Considering the market structure of the Uniqlo in the Australia, it has already beenclear that the firm operates in an oligopoly market, where more than seven to eight playersoperate. Under this market structure there exist good amount of barriers in the market thatrestricts the new entrants to enter the market. In the case of the apparel industry of Australiafollowing barriers can be observed (Anufriev & Kopanyi, 2018):Strong customer loyalty of the present brandsLarge amount of investment by the brand to introduce business in Australia Economies of scale achieved by the existing firm provide cost advantage to the rivalorganisations In case of the apparel industry, there is exit barrier too. Following are the exit barrier in themarket:

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Operational Issues Faced by Uniqlo in the International Market of North America
|8
|2335
|262

International Business Management PDF
|8
|2335
|20

ECO 201 : introdution to microeconomics
|8
|1417
|301

STRATEGIC MANAGEMENT Zara.
|7
|271
|28

Uniqlo's Entry into Indian Fashion Market: A Marketing Analysis
|14
|3160
|217

UNIQLO Supply Network Design
|8
|1855
|277