Muji Strategy Review
Transcript of Muji Strategy Review
MUJIStrategic ReviewMade by Junxian QuEdited BY Dong Wang, Wan Zhang
Wei-Yu Hsieh
PART ONE PART TWO PART THREE PART FOUR
01020304
Company Purpose
External Environment
Internal Environment
International Strategy
Agenda
1About MUJI
• Background• Vision• Mission• Value
About MUJI “Mujirushi Ryohin” Toshimaku, Tokyo, Japan, 1979 Public Trade 26 countries, 700+ stores 7000+ SKU Household goods/ / Fashion/
Kitchen utensil Stationery/ Electronics
What is MUJI
MUJI Mission
MUJI Vision “There is no set answer to what
Ryohin is. But ask yourself the question and you will see infinite possibilities.”
2External
Environment• PEST• 5 Forces• Strategic Group Map
External Environment
Competitors
Industry
Macro-Environment
PEST AnalysisPolitical:• High tariff Economic:• Exchange rateSocio-cultural:• Eco-friendlyTechnology:• E-commerce
Opportunity
• Increase in eco-friendly life style
• Decrease exchange rate• E-commerce• Globalization
Threat
• Cultural difference• High tariff
Industry OverviewHome furnishing store
Five Forces
Threats of Substitutes
(high)
Threats of Buyers(med)
Threats of Suppliers
(low)
Threats of New Entry(high)
Threats of Rivalry(Med)
High threat of entry
It is easy to enter the
industry
It is easy to imitate (MiniSo)
High threat of substitution
Clothing-Uniqlo
Furniture/life style-ikea
Stationary-piolet, Bic
Fabric-JC Penney’s
Design
Price
Strategic Group Map
3Internal
Environment• Strengths• Weakness
SW
Strength & Weakness 1. Unique Design 2. Product Functionality 3. Wide Product Variety
Premium Price outside Japan
4Strategy
• Corporate Strategy• International
Strategy
Diversification
The variety of products Compete in many markets
Diversification
Related diversification
Related Linked
Designers
Distribution channel
Procurement
Technology
Vertical Integration
1980s --- Design 1983 --- First Store 1985 --- Independent
procurement 1989 --- Ryohin Keikaku Ltd
Now --- After sale service
After-saleDesign Manufacture Marketing
Japan*China*Cambodia
Muji stores Muji AdviceMujirushi Ryōhin
International Strategy• Japan is a strong exporter•High value-to-weight ratios•Strong brand•Cultural similarities•Differentiation strategy
North America11 stores Asia
211 stores
Ireland1 store
Oceania11stores
Europe63 stores Japan
284 stores
Multi-Domestic
•Provides consumer products and foods
•Stick to differentiation •Customization•Counter exchange rate change
THANK YOU
Citation• What is MUJI? http://www.muji.com/us/feature/whatismuji/• Behind The Label: MUJI, on July 25, 2012, by Jessica Marati, ecosalon.com/behind-the-label-muji/• Useful and agreeable, http://web.archive.org/web/20090527173256/• http://www.usefulandagreeable.com/muji.html• Corporate Information ryohin-keikaku.jp/eng/corporate/• Muji Economics Project,
http://webcache.googleusercontent.com/search?q=cache:http://www.plkclscmc.edu.hk/resource/subjects/econ/MUJI.pdf
• http://www.liutan88.com/ltfzd/mujijfycxd_1.html