Strategic Analysis of Uniqlo | Case Study

Running head: STRATEGIC ANALYSIS OF UNIQLO CASE STUDY
STRATEGIC ANALYSIS OF UNIQLO CASE STUDY
Name of the Student
Name of the University
Author Note

STRATEGIC ANALYSIS OF UNIQLO CASE STUDY1
Table of Contents
Introduction......................................................................................................................................2
Porter’s five forces analysis of fast fashion retail industry..............................................................2
Radar plot technique based on Porter’s five forces analysis.......................................................4
Resources and capabilities analysis of Uniqlo – VRIO analysis.....................................................4
Strategic capabilities of Uniqlo and its impact on business performance.......................................6
Critical analysis of the Porter’s Generic strategy implemented by Uniqlo.....................................7
Critically examine the growth strategies adopted by Uniqlo using Ansoff’s strategies for growth
and its impact...................................................................................................................................8
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

STRATEGIC ANALYSIS OF UNIQLO CASE STUDY2
Introduction
Uniqlo is a fast fashion based retail chain that was established in the year 1972 by
Tadashi Yanai who had inherited the chain of 22 men’s tailoring stores from his father. The new
store that had been developed by Tadashi had led to the proper expansion of the processes of
Uniqlo in the fast fashion based retail industry. Tadashi Yanai had been able to enhance the
quality of products offered to the consumers and has also improved the product portfolio in an
effective manner. The rapid expansion of its operations have been able to provide a key position
to Uniqlo in the fast fashion based retail industry (Uniqlo.com, 2020). Uniqlo has developed
more than 800 stores in Japan and the company has provided net sales of 872.9 Billion in the
year 2019. The report will be mainly based on the study of the industry in which Uniqlo has its
operations and the competition that is faced from other firms as well. The internal environment
of Uniqlo will be analyzed with the application of VRIN framework. Porter’s generic strategy
applied by Uniqlo will also be discussed in the report in detail. The growth strategies used by
Uniqlo and the future growth aspects of the organization will be analyzed as well.
Porter’s five forces analysis of fast fashion retail industry
Threats of new entry – The new entrants in fashion retail industry of Japan have started
their operations with the help of their diverse product portfolio. The apparel industry is
considered to be buyer driven in nature and the low barriers that are faced by firms are related to
the intense levels of competition. However, the development of consumer loyalty and brand
awareness in the fashion industry prove to be quite expensive for the new firms. The brand value
gained by Uniqlo is considered to be a major asset or resource of the organization which has
reduced the threats from new firms (Abratt and Bendixen 2018).

STRATEGIC ANALYSIS OF UNIQLO CASE STUDY3
Threats of rivalry – The rivalry faced by Uniqlo is considered to be quite different in case
of the host countries and its home country. The size and operations of competitors of Uniqlo are
different and this has played a key part in enhancing the levels of competition. The
responsiveness of the organization towards competition in the industry is considered to be a key
aspect that is related to the quality of the products offered by Uniqlo. The products offered by
Uniqlo are considered to be a major source of its competitive benefit that is gained in the retail
industry. Uniqlo has also been able to develop the ability of adapting to the new trends that are a
part of the industry (Aguinis, Edwards and Bradley 2017).
Threats of the substitutes – The different types of products that are offered by Uniqlo to
the consumers mainly include casual wear, active wear, semi-casual clothes, business casuals
and many more. The organization is able to offer the products to different types of consumers
within a single umbrella. The development of substitutes for the products offered by Uniqlo are
considered to be quite tough for the rivals. This is able to reduce the influence of substitutes on
the processes and levels of profitability that have been gained by Uniqlo in fast fashion industry
(Angulo-Ruiz et al. 2018).
Threats of the suppliers – The availability and prices of the fabrics that are used
commonly for development of the products of Uniqlo are considered to be important for the
prices that are set by the organization. The costs of raw materials are able to influence the
processes and product portfolio of Uniqlo as well. The production based costs of Uniqlo are
thereby influenced by the suppliers of the organization. However, Uniqlo has been able to gain
full control of its supply chain and production process over the last few years of its operations in
the industry. This has been able to reduce the threats that are provided to the organization by
these suppliers (Bakri 2019).