SWOT Analysis
SWOT Analysis
STRENGTHS
Highly Efficient store operation
Expertise in inventory control
Expertise in distribution and store development
Global materials procurement
High quality products
Devotion to low-cost management and the direct coupling of production and sales at the fastest possible speed and lowest possible cost (Fast Retailing Annual Report, 2005).
Directly engages in all product planning, production, quality control, distribution, sales and sales promotion activities (Fast Retailing Annual Report, 2005).
UNIQLO products are inspired and shaped by a great variety of information such as customer opinions and market trends around the world (Fast Retailing Annual Report, 2005).
UNIQLO stores offer comprehensive selection of men’s wear, women’s wear and clothing for children and infants, making them the ideal spot for families of all ages to shop (Fast Retailing Annual Report, 2005).
WEAKNESSES
UNIQLO entered the American market in 2005. Analysts argue that the most difficult adjustment for the Japanese Apparel Retailer is the very thing that made it a huge success in Japan – its focus on basic rather than cutting edge clothes. American consumers differ from their counterparts in Japan. American consumers demand more than the basics. Analysts believe that one of UNIQLO’s weaknesses is its limited fashion elements (Roberts, 2005).
Corporate Acquisition – Fast Retailing engages in Merger and Acquisition (M&A) activities as one of its management strategies for the expansion of its operations. Through these activities, the Group seeks to pursue synergies with companies and operations that are the objects of its M&A activities and optimize its business portfolio, thereby aiming to maximize the Group’s business value. However, in cases where the Group is unable to realize the expected profit and benefits of M&A activities, this could have an adverse impact on the business results.
OPPORTUNITIES
Emerging
STRENGTHS
Highly Efficient store operation
Expertise in inventory control
Expertise in distribution and store development
Global materials procurement
High quality products
Devotion to low-cost management and the direct coupling of production and sales at the fastest possible speed and lowest possible cost (Fast Retailing Annual Report, 2005).
Directly engages in all product planning, production, quality control, distribution, sales and sales promotion activities (Fast Retailing Annual Report, 2005).
UNIQLO products are inspired and shaped by a great variety of information such as customer opinions and market trends around the world (Fast Retailing Annual Report, 2005).
UNIQLO stores offer comprehensive selection of men’s wear, women’s wear and clothing for children and infants, making them the ideal spot for families of all ages to shop (Fast Retailing Annual Report, 2005).
WEAKNESSES
UNIQLO entered the American market in 2005. Analysts argue that the most difficult adjustment for the Japanese Apparel Retailer is the very thing that made it a huge success in Japan – its focus on basic rather than cutting edge clothes. American consumers differ from their counterparts in Japan. American consumers demand more than the basics. Analysts believe that one of UNIQLO’s weaknesses is its limited fashion elements (Roberts, 2005).
Corporate Acquisition – Fast Retailing engages in Merger and Acquisition (M&A) activities as one of its management strategies for the expansion of its operations. Through these activities, the Group seeks to pursue synergies with companies and operations that are the objects of its M&A activities and optimize its business portfolio, thereby aiming to maximize the Group’s business value. However, in cases where the Group is unable to realize the expected profit and benefits of M&A activities, this could have an adverse impact on the business results.
OPPORTUNITIES
Emerging