Muji’s Approach to Expanding Internationally

Muji’s Approach to Expanding Internationally

The adjectives describing the mujis approach to expansion internationally are: joint venture, this is an agreement between two or more parties to pool resources to accomplish a specified task, like the way mujis and liberty had a joint venture in Britain. International trade this is an economic transaction between countries, where consumer goods are commonly traded such as clothes, television sets, food and raw materials. Globalization this is the process of integration and interaction among companies, governments and people worldwide.

The challenges faced by mujis when expanding in the US are:  Culture, is the cumulative experience, values, beliefs, different countries have different cultures thus culture was one of the of the challenges the company will face. Competition, as per the article (how I did it) the chairman of mujis talks about how their competitors had billboards advertising their brands that is one of the other challenges because of the competition. Another challenge is the US the construction costs for stores are high after shipping goods from Asia which is where the manufacturing is still done. The cost of salary for workers are high also especially in areas with unions where there is minimum wages.

I have not visited the Mujis store but according to the customers reviews they are good mostly getting good reviews on the pricing and quality of their goods. I think it is a good store to shop from because of quality goods. I think mujis should not exit the market with in the US because of the because of the COVID 19 crisis, the crisis is affecting every business in the US thus the economy will stabilize after sometime when the crisis is over and since they have established their store chances are high that they will succeed.