Uniqlo Written Proposal

1688 WordsApr 1, 20137 Pages
Introduction to Business Written Proposal Introduction: This report is about Uniqlo’s competitive environment using Michael Porter’s Five Force Model. Uniqlo is a Japanese company which engages in designing casual wear clothes, manufacturing clothes and retailing clothes. Uniqlo in Hong Kong has established a profitable business constantly recording extremely high sales on a per store basis. Uniqlo offers fashionable and high quality clothing at reasonable prices, and was seized as an opportunity to establish a brand position domestically and internationally. 1. Existing Rivalry 1.1 Number of direct competitors: Gap, Bossini, Zara, Giordano, and H&M are the direct competitors of Uniqlo. As the numbers of direct competitors…show more content…
The clothes are fashionable, designs are innovative and unique. Also H&M’s clothing style is European-style and it is selling the latest trends. Thirdly, Uniqlo’s clothes quality is not as good as its competitors because its suppliers are manly from China and as China is a developing country with the technology factor lacking behind. The cloth supplies are not of good quality. Whereas, Uniqlo‘s competitor GAP’s clothes are better. Because GAP brand’s Clothes are of good quality. Gap’s suppliers are from advanced countries like U.S.A and UK. Finally, Uniqlo is not using online shopping method. This causes Unilqlo having fewer sales. However H&M and GAP have online shopping, which attract customers who purchase products online due to their busy life. Substitutability is higher because of this factor when customers couldn’t buy products of Uniqlo online they will choose another companies to buy from which are selling online. From these, we can see that Uniqlo have large number of substitutes, therefore, the substitutability is high. 4. Bargaining power of customers 4.1 Number of customers Uniqlo have gained profit by expanding its business in Asian countries. Each individual Asian nation continued to generate double-digit growth in same-store sales. From increasing sales, we can see that Uniqlo have many customers. And their bargaining power is strong, as their demand for Uniqlo products is increasing. 4.2 Dominant

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