Question

Write a well written one page paper based off the following question and give me your opinion? Use citations if possible

Question: What are Uniqlo’s organizational capabilities?

Answer 1

UNIQLO is a 100% subsidiary of Fast Retailing Co. Ltd. Of Japan. In 1984 UNIQLO started its operations from a humble store in Hiroshima. By 1998 UNIQLO had strengthened its brand by creating its own private labels. By 2001 UNIQLO had started to expand globally and in the next 15 years it has set up 790 stores around the globe.

The success story of this retail chain can be attributed to the following organizational capabilities which are evident by the business strategy followed by UNIQLO.

1.        Strategic Planning - UNIQLO started as an indigenous brand in Japan but soon expanded oversees. It is continuing its domestic growth as well as global expansion through organic and inorganic means.
2.        Customer Centricity – UNIQLO has created the brand awareness by providing individualistic fashion for the entire family, Example Body for women centric clothing and Uniqlo kids for catering to children and infants. The management at UNIQLO focusses on Voice of Customers (VOC) as utmost important parameter for R&D. At every store at UNIQLO they value interaction with customers as an efficient means to collect insights.
3.        Process Efficiency – UNIQLO keeps the production cost minimum by ensuring efficient distribution management and in-depth inventory control.
4.        Cost Optimization – This utmost important to them and they follow SPA strategy (Specialty store of Private label Apparels) to cut down on cost. They believe in selling simple but functional clothing with minimalistic designs.
5.        Operational Planning – The brand believes in providing quality products which of proper control measures at every step from manufacturing to sales.
6.        Innovation – The company is focused on innovation by bringing in business structure reformation.