Comparative Case Study of UNIQLO and MUJI

Comparative Case Study ofUNIQLO and MUJI

CarolLucyKasparAtsushiTable of Contents1) What is a value chain?2) Background Information3) Primary activities4) Support activities5) Future Developments6) Bibliography

1) What is a value chain?

design, produce, market, deliver, and supportstrategically important activities

competitive advantage a value chain

Primary activities and support activities42) Background InformationUNIQLOFirst store in Hiroshima, 1984Good quality clothes at Low PriceBasic items in mass productionUNIQLO fleece 19881650 billion yen sales in fiscal 2014

MUJIStarted with 40 products as a private brand of Seiyou in 1980a wide variety of household and consumer goods.Pursuit of a sustainable Pleasant lifeSimple and environmentally friendly products220 billion yen sales in 2014

3) Primary activities

Inbound logisticsreceiving, storing, and disseminating inputs material handlingwarehousinginventory controlvehicle schedulingreturns to suppliers

Inbound logistics

4) Support activities

Firm infrastructureHuman Resource ManagementTechnological DevelopmentProcurement8Firm infrastructureTechnological DevelopmentUNIQLOMUJIConstant research for new materials

Attending fashion shows in Tokyo, Milan, New York and Paris

Continuous improvement of inventory control systemsPassport App

7% of total sales online

Brick-and-click/O2O development

Use of Big Data

Popular YouTube commercials

Human Resource Management

Human Resource ManagementUNIQLOMUJIStrict employee training

Unified global culture

Work-life balance

Disabled people

Women in managementOutsourcing of HR capacities

Adaptation to local cultures

Focus on retention

Mentorship program for Youngers

Electronic planning system

ProcurementUNIQLOMUJIUNIQLO Material Development Team

Denim from KAIHARA, Hiroshima

Ultra-fine cotton

Orders for 1 million garnmentsWorldwide search for quality products

Sustainability is important

Use of discarded materials

5) Future Developments

UNIQLOMUJIFlagship stores for market penetration

Looking to develop US/EU/CN market

More economies of scale

Become nr. 1 in the worldGrowing operational margin and profit

Expansion in Japan/EU/Asia

Entering Australian market

Learning from globalization

6) Bibliography

Porters Value Chain. (n.d). Retrieved June 23, 2015, from http://www.docstoc.com/docs/34937428/Porters-Value-Chain/Porter, M. E. (2001). The value chain and competitive advantage. Understanding business: Processes, 50-66.http://www.porterprize.org/english/pastwinner/2009/12/03114807.html/https://www.prophet.com/theinspiratory/2014/10/21/6-reasons-why-uniqlo-is-winning/http://www.lgcnsblog.com/it-trend/what-do-zara-and-uniqlo-have-in-common-supply-chain-management/http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-UNIQLO-Fast-Retailing-Credential.pdf/http://www.fastretailing.com/eng/ - Fast retailing company websitehttp://nymag.com/fashion/features/65898/https://en.wikipedia.org/wiki/Muji/http://ryohin-keikaku.jp/corporate/http://www.uniqlo.com/sg/corp/production/http://www.fastretailing.com/eng/ir/library/pdf/ar2011_en_08_n.pdf/http://www.triplepundit.com/2011/12/muji-makes-brand-sexy-consumers/http://ryohin-keikaku.jp/eng/balance/pdf/annualreport_2014_e.pdf/http://www.kamigumi.co.jp/english/service/business/total/case.html/https://satori.marketing/blog/marketing-strategy/http://www.uniqlo.com/jp/corp/corp_about.html/http://www.fastretailing.com/eng/group/strategy/uniqlobusiness.html/http://www.fastretailing.com/eng/group/strategy/tactics.html/http://architecture.mit.edu/pdfs/lecturereadings/muji.pdf/http://www.cityray.com/page.cfm?news_id=188&pid=66&sid=478/http://www.textile-future.com/dynpg/print_text.php?lang=en&aid=890&showheader=N/