Uniqlo Written Proposal Essay

1672 Words Apr 10th, 2013 7 Pages
Introduction to Business
Written Proposal

This report is about Uniqlo’s competitive environment using Michael Porter’s Five Force Model. Uniqlo is a Japanese company which engages in designing casual wear clothes, manufacturing clothes and retailing clothes. Uniqlo in Hong Kong has established a profitable business constantly recording extremely high sales on a per store basis. Uniqlo offers fashionable and high quality clothing at reasonable prices, and was seized as an opportunity to establish a brand position domestically and internationally.

1. Existing Rivalry

1.1 Number of direct competitors:
Gap, Bossini, Zara, Giordano, and H&M are the direct competitors of Uniqlo. As the numbers of direct competitors
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Because of the competition bill, Companies can compete fairly and set up their businesses in Hong Kong. New entrants are easy to join in competition to compete because competition is legalized in Hong Kong.

From these four barriers, we can conclude that new entrants are easy to join in competition

3. Substitutes

3.1 Number of direct substitutes
Hong Kong has many companies which can substitute Uniqlo such as H&M, GAP, Bossini and Giordano. Uniqlo is not the only choice for customers to choose. Customers have many choices to choose.

Besides, customers do not pursue for brand, they just pursue the price, cutting and quality. Uniqlo is not necessarily the only company which is selling good quality clothes at reasonable prices. Its competitors sell the similar products as it at comparable prices. Some products are expensive in Uniqlo; customers can choose to purchase them from its competitors.

3.2 Substitutability
Uniqlo’s substitutability is very high. There are several reasons to explain these.

Firstly, Bossini and Giordano price are better than Uniqlo. For example, a warmth t-shirt, Bossini sell it at only HKD$99 and Giordano sell T-shirt with a jean at HKD$169. But Uniqlo’s T-shirt cost HKD$129 each. So Bossini’s and Giordano’s clothes are cheaper than Uniqlo.

Secondly, H&M’s

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