Uniqlo: A Supply Chain Going Global Case Study Solution
Extended Enterprise of Uniqlo:
Considering the concept of extended enterprise which deals with the extension of business relations through the provision of consultations and workshops regarding the process management to bring a reduction in the processing time and improve the quality ofgoods and services of the goods provided by suppliers. (Ericksen, 2014)Thus, the extended enterprise of Uniqlo tends to be mainly based on the extension of the supply chain network in different regions of the world. This is primarily based on the reason to increase sales and extend the consumer base. The extended enterprise mainly relies on its core competencies such as its relationship with suppliers i.e. an approximate of 40 suppliers, product outsourcing and strategic alliance with different players in the international market.
Suppliers as Intangible Assets:
The relationship between the customers and suppliers tend to serve as the key value drivers for several organizations. The relationship is considered to be the intangible assets of an organization associated with varying business combinations. The close relationship with suppliers is known as suitable for the creation of product differentiation and strengthening the financial performance of the organization. The strategic management of the buyer-supplier relation tends to represent a positive impact on the financial performance of the organization providing the company with the gain of competitive advantage and cost reduction leading to higher product quality.(Lorentsson, 2016')Thus, it is affirmed that suppliers can be the intangible assets of the organization.
Recommendation:
Based on the analysis of the operating model of Uniqlon in comparison to the other leading fashion retailers in the industry, the organization is recommended to extend its sales through targeting new consumer base, product differentiation would allow Uniqlo to sale extended range of products, and maintain strong relationships with the partners or suppliers. This is because the entire business growth of the retail industry tends to be based on the supplier network. A significant increase in the sales would allow the organization to invest more in research and development leading to the use of advanaced technological approaches.
Conclusion:
Unique, being a dominant player in the Japenese retail industry had demonstrated the intention to expand its services at a global level. Due to this reason, the organization has been expanding its retail stores in China, Europe, and the United States. Whereas, the hungriest market for fashion retailing mainly includes Asia wide demonstrating the potential of significant growth. Thus, the organization is recommended to extend its sales by targeting new consumer base, product differentiation, and maintain strong relationships with the partners or suppliers...................................
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