Zara vs. Uniqlo
Clothing Industry
ZARA
vs.
UNIQLO
Team J: Bingbing Ge Lei Du Sophia Maduka Salman Syed Azim Thanadol Boonyaviwat Tanya Goel 1
Index
Content
Page Number
Executive Summary………………………………………………………………... 4 Introduction………………………………………………………………………… 5 Industry Analysis……………………………………………………………………5 Competitive Environment……………………………………………….5 Strategic Groups………………………………………………………...6
ZARA……………………………………………………………………………….7 Critical Success Factors…………………………………………………7 Strategic Issue: What should ZARA do next?......................................... 9 Strategic Options for ZARA and Inditex………………………………. 10
UNIQLO…………………………………………………………………………… 11 Critical Success Factors…………………………………………………11 Strategic Issue: Should UNIQLO compete with ZARA……………….. 12 Strategic Options for UNIQLO and Fast Retailing……………………..13
Conclusion…………………………………………………………………………..14
2
Appendices Index
Content
Page Number
Appendix 1 : Porter’s Five Forces..............................................................................15 Appendix 2 : PESTEL Analysis.................................................................................17 Appendix 3 : Risk Factors..........................................................................................18 Appendix 4 : Strategic Groups...................................................................................19 Appendix 5 : ZARA Business Model ........................................................................20 Appendix 6 : CAGE Framework............................................................................... 21 Appendix 7 : ZARA’s TOWS Matrix………………………………………………22 Appendix 8 : Clothing retailers’ sales and profits..................................................... 23 Appendix 9 : Case of UNIQLO failing to compete with ZARA............................... 24 Appendix 10 :
ZARA
vs.
UNIQLO
Team J: Bingbing Ge Lei Du Sophia Maduka Salman Syed Azim Thanadol Boonyaviwat Tanya Goel 1
Index
Content
Page Number
Executive Summary………………………………………………………………... 4 Introduction………………………………………………………………………… 5 Industry Analysis……………………………………………………………………5 Competitive Environment……………………………………………….5 Strategic Groups………………………………………………………...6
ZARA……………………………………………………………………………….7 Critical Success Factors…………………………………………………7 Strategic Issue: What should ZARA do next?......................................... 9 Strategic Options for ZARA and Inditex………………………………. 10
UNIQLO…………………………………………………………………………… 11 Critical Success Factors…………………………………………………11 Strategic Issue: Should UNIQLO compete with ZARA……………….. 12 Strategic Options for UNIQLO and Fast Retailing……………………..13
Conclusion…………………………………………………………………………..14
2
Appendices Index
Content
Page Number
Appendix 1 : Porter’s Five Forces..............................................................................15 Appendix 2 : PESTEL Analysis.................................................................................17 Appendix 3 : Risk Factors..........................................................................................18 Appendix 4 : Strategic Groups...................................................................................19 Appendix 5 : ZARA Business Model ........................................................................20 Appendix 6 : CAGE Framework............................................................................... 21 Appendix 7 : ZARA’s TOWS Matrix………………………………………………22 Appendix 8 : Clothing retailers’ sales and profits..................................................... 23 Appendix 9 : Case of UNIQLO failing to compete with ZARA............................... 24 Appendix 10 :
References: Craig, A. & Jones, C. & Nieto, M (2004) ZARA: Fashion Follower, Industry Leader [Online], available at: < http://www.philau.edu/sba/news/ZARAreport.pdf> [18 Dec 2010] 33 Cosciato, P. (2010) Fashion worth more than $30 billion to UK economy[Online], available at: < http://www.reuters.com/article/idUSTRE68F3UX20100916> [18 Dec 2010] Fashion Auction, (2010) ZARA Clothing [Online] available at: [18 Dec 2010] Fujimura, N. & Ozasa, S. (2010) UNIQLO Billionaire Yanai Revisits Drucker to End Slump [Online], available at :< http://www.businessweek.com/news/2010-12-06/UNIQLObillionaire-yanai-revisits-drucker-to-end-slump.html> [18 Dec 2010] Ferdows, K Ghemawat, P. & Nueno, J. L. (2003) ZARA: Fast Fashion [Online] available at :< http://mbanerds.com/index.php?title=ZARA%3A_Fast_Fashion > [18 Dec 2010] Grant, R