Essays on UNIQLO Expansion to the Indian Market Case Study

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The paper "UNIQLO Expansion to the Indian Market" is a great example of a marketing case study.   UNIQLO is a Japanese company that started as a local clothier known as Men’ s Shop Shoji at Ube city, Yamaguchi Area. In 1963 it expanded with 6 million yen in capital. 1984 it opened another store in Hiroshima going by the name Unique Clothing Warehouse leading to the adoption of the name UNIQLO. By 2001 the company had had 500 stores around Japan. This lead to the expansion of the company both domestically and globally, by 2002 there were about 4 stores in London (UNIQLO, 2017).

The clothing company recently decided to enter the Indian market, this paper aims to outline the company’ s entry strategy and its position in the Indian market. The UNIQLO Clothing Company used the resource-based view strategy in its growth globally leading to its formidable success. In Resource-based view resources are the ones that basically attribute to the growth of the firm or company (Hooley et al. , 1997). This means if they exhibit VRIO attributes they enable the firm to sustain and gain competitive advantage.

Those firms that support this focus on inside the company in order to find the sources that have a competitive advantage. This made the UNIQLO focus on its manufacturing advantages in order to defeat its competitors thus producing cheaper fashionable clothes. It also focused on exploiting external opportunities by using the existing resources rather than searching for new skills. In Resource-based View, the resource is given the number one role in helping in the growth of UNIQLO. The resource-based view has two types of resources: tangible and intangible assets.

Tangible assets are the physical things while intangible assets are everything owned by the company but have no physical form just like: brand reputation, intellectual property. Resource-based View also has two critical assumptions that state that resources must be immobile and heterogeneous. In heterogeneous capabilities, skills differ from one firm to another while in immobile it means that the resources are not mobile and cannot move from company to company. UNIQLO has concentrated more on mass production and producing good quality items, T-shirts, and basically focusing on all its goods to be affordable.

According to its competitors like H& M, UNIQLO is still growing because it has 44stores in US 846stores in Japan and 449 stores in China compared to 4000 stores that belong to H& M a Swedish company. This is mainly because of warm winters which bring down the sales of its jackets. UNIQLO has grown better globally through concentrating on some key aspects: it brands its innovation which helps in substantiating its quality and performance which sets it apart from the other companies, it also has a clear vision of its brand which helps them provide high-quality clothes, it also produces basic casual clothes at lower prices and has an exceptional leader, Tadashi Yanai, whose leadership skills are really hard to duplicate.

It has also focused on procuring good global materials for specific stores around the world which means it produces clothes basing on customers’ requirements and worldwide market trends (Aaker, 2017). UNIQLO has stores all over the world which are constantly growing in number and size. They have also opened stores in shopping malls which are helping in the distribution of their product and also helped in the growth of total net sales.

Another tangible asset is cash flow. UNIQLO commands a 5.5% share of the $136 apparel market for the Japanese. It has doubled its revenue in the past 6 years. In 2006 it reported a net sale of $5.1 billion (UNIQLO, 2017). It has used its financial assets in growing its company and purchasing new equipment to help in the production of its products. In inventories, they anticipate seasons thus producing necessary seasonal wears which make them have fewer updates on their designs.

This means they have so many inventories at their subcontracted warehouses that are closely monitored by their staff around the world. It also has a team known as the Takumi Team who is a group of engineers who have over 30 years of experience in textile industries in Japan (UNIQLO, 2017). These engineers are the reason behind UNIQLO’ s new designs; they help in controlling production and offer technical support to the company’ s partners  (Nordmeyer, 2017).

Reference

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UNIQLO, 2017. Our story. [Online]. Available at: https://www.uniqlo.com/uk/en/company/about_uniqlo.html [Accessed 21 Mar. 2017].

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