Swot Matrix of Uniqlo

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Swot matrix of Uniqlo

Strength
i. Branding :
Sell casual wear at affordable price to overseas market
Design and styling is consistent with positioning which their brand grow popular in overseas

ii. Visionary leader :


Founder, Tadashi Yanai converted his inherited 22 tailoring stores into a clothing brand
called Uniqlo
He had sensed opportunities in Europe and Usa. He improved himself by learning and took
ideas from brands like United Colrs of Benetton and Gap. He expand his portfolio and
foraying into foreign markets

iii. Innovations

Their cutting edge have set them apart from their competitors

Example : Heat tech fabric, turns moisture into heat and retains the heat in heat pockets and
Airism, stretched fabric and life wear blend of casual and sportswear

Weaknesses

i. Weather sensitive apparel


Not all of the product is suitable in all places
Example : weather sensitive apparel like Heattech is well accepted in Asia while
some could not be accepted in Us. Apparel designed for Asian lacked global
adaptability which resulted in failure.

ii. Inability to penetrate successfully


Uniqlo despite being global brand its brand is strong primarily in Asia and the other
country is still trying to accept the brand. Uniqlo struggle to break into market share
of famous retailers in Us (Gap or Tommy Hilfiger)

iii. Need more investment in new technologies


Uniqlo need to put more money in technology to integrate processes across board
such as scale of expansion and different geographies , company is planning to
expand into.
Opportunities

i. New segments
Uniqlo has its market in men and women segment wear and is yet to make new kids
segment. This segment shows promising growth in Asia.
ii. Decreasing cost of transportation
Lower shipping price will cut down the cost of Uniqlo products. Provide opportunity
for company to boost profitability or pass benefits to customers to gain market
share.

Threats

i. Competition
Main competitors of Uniqlo in fashion wear are Gap, Zara, Tommy Hilfiger

ii. Rising cost of raw material


Threat to Uniqlo profit. Scarce source of raw material or less availability of raw
material impose higher price

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