Uniqlo has a new construction in the management (Anwar 2017). The arrangement enables faster operations which support a breakthrough in the market. The company uses cost-leadership strategy in the market. It sells its products at lower prices compared to other companies. Also, it uses product differentiation as another strategy to counter the new products developed by the competitors. However, the product differentiation strategy is temporary due to the high rate of innovation in the industry. The rivalry in the market is another significant factor to be considered. Without competition, the Uniqlo would not sell quality products to its customers.
Factor conditions refer to the availability of human, capital and natural resources (Bakan and Dogan 2012). As a result, those rich in the resources have a competitive advantage in the market. Also, the company's innovation is a factor condition that makes it do well in the industry. Uniqlo has access to quality raw materials for making its products. Therefore, they can manufacture enough products to satisfy the market. Moreso, what makes Uniqlo have a competitive advantage is the HeatTech fabric which makes clothes with stylish designs different from the standard ones. The innovation continues to improve with fiber technology.
The intensity of home demand affects the performance of the company. Sophisticated demand from local consumers forces the company to grow and be innovative. Hence, they can produce goods with quality that will match the needs in the market. Uniqlo experiences demand pressure from the vast Asian market. The Asian market is growing rapidly and thus forcing the company to produce more goods to satisfy it. As a result, the company uses the online shopping site to cater which can reach most people in seconds. The site enables them to respond quickly.
Related and supporting industries
Suppliers and other partners are very crucial to every business (Choi, 2011). If the suppliers fail to supply to the company, it will run out materials or products. As a result, the company will lose the market for failure to provide. Also, financial creditors are essential to the business since they provide financial support for the organization to fund its operations. Uniqlo has partnered with Higg Index whom it benchmarks with to make improvements on its quality. Moreso, Uniqlo fosters long-term relationships with its suppliers of raw materials to ensure continuous operations.
Porter sees the Government as a catalyst and challenger. Also, he does not acknowledge the government as a helper of companies. Governments should encourage organizations by establishing anti-trust laws and promoting change. For example, the government of Hong Kong supports Uniqlo by allowing it to have contracts with no tariffs if it buys goods with no CEPA policies (Li, Zhao, Shi and Li 2014). Therefore, the company can expand its market in the US markets without many political restrictions.
Chance creates discontinuities, which results to merits to some countries and demerits to others. Such cases are natural disasters, war, and geographical positions. Uniqlo gets a chance to expand its business in regions where its rivals fail to establish themselves. For example, it has stores in places like New York and London which are very expensive for other companies.
Anwar, S.T., 2017. Zara vs. Uniqlo: Leadership strategies in the competitive textile and apparel industry. Global Business and Organizational Excellence, 36(5), pp.26-35.
Bakan, I., and Dogan, I.F., 2012. Competitiveness of the industries based on the porter's diamond model: An empirical study. International Journal of Research and Reviews in Applied
Sciences, 11(3), pp.441-455.
Choi, E.K., 2011. The rise of Uniqlo: leading paradigm change in fashion business and distribution in Japan. Entreprises et histoire, (3), pp.85-101.
Li, Y., Zhao, X., Shi, D. and Li, X., 2014. Governance of sustainable supply chains in the fast fashion industry. European Management Journal, 32(5), pp.823-836.
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