Uniqlo Analysis

Uniqlo Analysis

Situation Analysis

When looking at Uniqlo, there are several things to consider about its situation in the market. One of its strengths is that it had grown in a significant way for the last twenty years, thus becoming among the four largest fashion retailers globally. When it comes to weaknesses, one of its major weaknesses was competition. The company had competitors such as the H&M and Inditex, which were opening new stores in the mainland. The company had an opportunity to attract more consumers, especially from Asia. Consumers from Asia were hungry for trendy fashion wear. The company was facing threats from the fast fashion companies H&M and Inditex, which were going global and investing in other retail shops.

Key Problem

According to the interview which was carried out, three major problems were identified from the customers. One of the issues was the prices. The two women kept mentioning how it was expensive to purchase accessories from Uniqlo. According to them, they were forced not to purchase some of the goods due to high prices.

Another problem was delivery. The shipping of the products took longer than the agreed period. The customer mentioned that sometimes they would spend more hours waiting for their products to arrive. As a result, they ended up being late for events. The third issue was on the relationship between the employees and the customers. They complained that some of the employees were not treating them in a friendly way.

Possible Alternatives

Given the issues that were presented by the customers during the interview, several things can be done to handle the problems. On the issues, which is prices, the company can try to produce goods that are of different qualities and prices. This will ensure that there are varying prices for commodities (Coccia, 2016). When it comes to delivery, Uniqlo can employ more individuals to enhance the shipment because sometimes the delay occurs where only a few people are relied upon for transportation. The issue of the relationship between employees and customers is very critical. The employees should be trained on how to handle customers of different characters.

Decisions and Decision justification

As the new Uniqlo VP in product development, there are several decisions that I will have to make. One of the decisions will be based on the competition because that is the greatest threat to the company. When looking at Inditex, it ensures that the products only have a sale period of four weeks, and thus it has a continuous flow of the latest fashions. Uniqlo, on the other hand, will only produce the first moving products. This way, the company will be able to make more sales and clear the stocks in a good time. Another thing will be to open more retail shops, especially in Africa since competitors dominate Asia. This way, the brand will have new customers.

Implementation

For the decisions which will be made to be effective, one of the things will be to train the employees. Employees are the most important individuals in any organization since they are the ones who deal directly with the customers (Dalimunthe & Muda, I2017). They will have to be up to date with the current issues in the fashion industry so that they can provide ideas on what to improve, what to do and what not to do when dealing with the competitors. The company will also employ new people from different parts of the world so that when it opens the branches, it can have people who will be able to communicate well with the customers.

Outcomes

If the above plan to solve the problems will be considered, the company will achieve its objective of increasing sales. One of the things which will be used to measure the performance will be the stock. The rate at which the stock will be cleared will tell on the progress.

References

Coccia, M. (2016). The relation between price setting in markets and asymmetries of systems of measurement of goods. The Journal of Economic Asymmetries, 14, 168-178.

Dalimunthe, D. M., & Muda, I. (2017). The Empiricaleffect of Education and Training to the Performance of Employees.