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