swot analysis of japan

SWOT ANALYSIS OF JAPAN

SUBJECT:-OGFAA DATE:-25/10/2012SUBMITTED BY: AJOY DEY (01)KULBHUSHAN (11)KUSHAL (12)SANDEEP (22)

ECONOMY OF JAPAN

• The economy of Japan is the third largest national economy in the world after the United States and the People's Republic of China.

• Japan is the world's 3rd largest automobile manufacturing country.

• Exports – Commodities: machinery and equipment, motor vehicles, semiconductors, chemicals

• Imports – Commodities: machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials (2001)

Exports(2011 est.)$788 billion• Export Goods

• Motor Vehicles 13.6%• Semiconductors 6.2%• Iron And Steel

Products 5.5%• Auto Parts 4.6%• Plastic Materials 3.5%• Power Generating

Machinery 3.5%• Main Export Partners

• China 19.7%• Us 15.5%• South Korea 8%• Hong Kong 5.2%• Thailand 4.6%

Imports(2011 est.)

$808.4 billion• Import Goods

• Petroleum 15.5%• Liquid Natural Gas

5.7%• Clothing 3.9%• Semiconductors 3.5%• Coal 3.5%• Audio And Visual

Apparatus 2.7%• Main Import Partners

• China 21.5%• Us 8.9%• Australia 6.6%• Saudi Arabia 5.9%• UAE 5%• South Korea 4.7%

TOP 10 MARKETS FOR TEXTILE AND APPAREL

COUNTRY TOP 3 PRODUCT EXPORTS

1)CANADA HS 61 HS 62 HS 572)MEXICO HS 59 HS 57 HS 613)HONDURAS HS 52 HS 55 HS 544)CHINA HS 55 HS 56 HS 545)DOMINICAN REPUBLIC HS 52 HS 62 HS 556)JAPAN HS 61 HS 62 HS 567)EL SALVADOR HS 60 HS 52 HS 618)UNITED KINGDOM HS 60 HS 61 HS 5410)BELGIUM HS 56 HS 55 HS 54

APPAREL IMPORTS AND EXPORTS BY COUNTRY

JAPAN TEXTILE EXPORT

TOP THREE SELLING EXPORT PRODUCT HS 61- KNIT HS 62-NON KNIT HS 56- FELT/SPECIALITY YARN

TEXTILE AND TRADE WITH JAPAN(RANK-6)

Strength

Strength

RANK OF JAPANESE DESIGNERS IN DESIGNER RANKING 2005

RANK ON OCTOBER 2005

4) YOHJI YAMAMOTO

11) COMME DES GARCONS

18) JUNYA WATANABE

27) ISSEY MIYAKE

39) UNDERCOVER

52) TSUMARI CHISATO

RANK ON OCTOBER 1988

3) YOHJI YAMAMOTO

10) ISSEY MIYAKE

11) COMME DES GARCONS

16) ATSURO TAYAMA

21) JUNYA WATANABE

COMPARISON OF GLOBAL SALES p.a.

CORPORATION HENNES & MAURITZ

GAP INDITEX FOREVER 21 FASTRETAILING

PRINCIPAL OFFICE

SWEDEN U.S SPAIN U.S JAPAN

DEVELOPED BRAND

H&M GAP,OLD NAVY

ZARA FOREVER 21,etc

UNIQLO

SALES(MILLION YEN)

1,125,200 1,415,600 1,415,700 163,200 685,000

GROSS MARGIN RATIO

61.5% 37.5% 56.8% - 49.9%

OPERATING INCOME(MILLION YEN)

255,400 150,200 218,800 - 108,600

NUMBER OF STORE (IN JAPAN)

2000 (7) 3149(121) 4264(43) 460(1) 2173(1326)

WEAKNESS

• Shipment of Japanese textile industry have decreased to about one-third of those at peak.

• After the Lehman shock, in particular, the production level decreased sharply. Prices are becoming lower.

• In the global cost reduction competition, production of general-purpose materials by china is increasing.

• The aging of worker is progressing and enterprises depend on foreign trainees. Human resources are seriously declining.

WEAKNESS

• Most apparel products are imported. Few products are exported.

• The long and complicated supply chain prevents smooth collaborations.

OPPORTUNITIES

• To end its dependency on domestic demand and to exploit growing overseas markets focusing on those in Asia after careful preparation.

• To apply textile materials and technologies to a broad range of industrial fields out of the apparel industry, so as to enlarge the textile market.

OPPORTUNITIES

• To have the fashion industry take large steps toward a major position in the cultural industry, which is expected to be a future growing industry.

• To promote collaborations among entrepreneurs for mutually making use of their advantages in severe international competition, where enterprises from emerging economies are rising.

CHANGES FOR DEVELOPMENT

FUTURE DIRECTIONS• Integral approach of

various product from designer brands to real clothes and of all industries related to life and culture to meet demand of overseas customers

• Enhancement of business ability in addition to sensitivity.

• Safety, peace of mind and sensitivity should be formed into additional values in order to end cost reduction competition.

ACTIONS BY YHE GOVERNMENT• Publicity to overseas

market together with other industries related to life and culture and branding.

• Supporting creation of overseas permanent business bases.

• Support the value addition through frame work to ensure traceability.

Threats

• High Cost of Manpower is main threat to textile industry in Japan.

• Competition from other developing countries, especially China.

• Geographical Disadvantages. • To make balance between price and quality.

REFERENCES

• JOURNAL DU TEXTILE (FRANCE) DATED SEP 26,2005

• WWW.WIKIPEDIA.ORG

THANK YOU