Assignment: Supply Chain and Apparel Industry

Topics: Indonesia, Supply chain, Supply chain management Pages: 7 (2708 words) Published: May 4, 2013
Assignment 1- Individual Report| Individual Report- 1Managing Relationship & Networks| | |

(Fast Retailing, 2012)

Tangible resources of FR-Uniqlo:-
Physical Resources: - FR-Uniqlo has physical resources nationally and internationally and they are now considering in expanding their branches internationally. This chart illustrates FR-Uniqlo physical resources around the world.

Human resources:
FR-Uniqlo honestly evaluates each employee’s talent and performance regardless of age, gender, race or nationality. They focus high importance on employee development as they provide customers with the ultimate merchandise and service. They have high motivated staffs that have brought many positive facts for them also they have Fast Retailing Management Innovation Center (FRMIC) in every region to encourage accurate training of management personnel. (Fast Retailing, 2012)

Financial resources:
FR-Uniqlo sales in Japan have slightly dropped, however FR-Uniqlo sales on international market has growth. So, they highly focus on international markets expansion. When the net sales grow higher they are opening many new stores around the world. (Fast Retailing, 2013)

Intangible resources:-
Brand name: FR-Uniqlo brand name is the positive factor of the company as their brand name has a high reputation in all over the world.
Innovation: - FR-Uniqlo has been well known for innovation. They occupy mainly on the high street to attract customers with their store allocation and designs. Innovation is one of the factors which bring high profit to FR-Uniqlo also they are continually providing their products with high techniques. VRIO framework of FR-Uniqlo

Valuable: - One of the core values of FR-Uniqlo is the quality of their products. FR-Uniqlo is also valuable from their resources, it can be seen that they expands their stores not only in Japan but also internationally with high techniques to make strong worldwide brand also to make profits. Therefore, their resources can provide potential opportunities and grow further. (Fast Retailig, 2012) Rare: - The rarity of FR-Uniqlo is they use high techniques and high class materials for their products. Products of FR-Uniqlo are superior quality with reasonable price. However, there are many existing companies in the same industry have the same point but FR-Uniqlo has a product called HEATTECH which is very rare when compare to their main competitors. (Guardian, 2011) Imitate: The business model is easy to imitate, but FR-Uniqlo strong relationship with supplier is very hard to imitate, FR-Uniqlo products such as heat tech, which is very rare and hard to be imitated by others. (Guardian, 2011) Organisation: Despite SPA business model, FR-Uniqlo recognized four regional head offices and these head offices will be tasked with ensuring resourceful inventory control and store development in every region and improving management accuracy and efficiency. (The Economist, 2010)

FR-Uniqlo Vertical Business Network
Above the chart represent the vertical business network of FR-Uniqlo as their main suppliers are China and Japan and other suppliers are Vietnam, Bangladesh and others. Kaihara Corporation, based in Fukuyama city, Hiroshima Prefecture is known within the denim industry. The collaboration between FR-UNIQLO and Kaihara dates back to 1998 when FR-UNIQLO opened its first ever urban store in Tokyo’s trendy Harajuku area. Kaihara has proved strong supply relationship with FR-UNIQLO ever since continuing to provide with premium denim at amazingly sensible prices. (Boyd.N 2009) However, 70% of FR-UNIQLO products are made in China. Therefore, FR-Uniqlo has planned to develop production in other Asian countries in order to decrease dependence on China and to lower costs. (Fast Retaling-2013)

FR-Uniqlo Horizontal Business Network
Above the chart represent the horizontal business network of FR-Uniqlo as their main...
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