- i) Introduction and Current Situation
In the current period, populations in many parts of the globe enjoy better economic success and living conditions relative to prior periods before the modernization of various economic sectors on a global scale. As a result, the population living in the present period can spend their resources on expenditures that may previously have been considered to be both luxurious and unnecessary. These include brand name clothing, automobiles, devices, and experiences, to mention a few. Simultaneously, firms that produce products in the categories, as mentioned earlier, have significant growth both in terms of production capability and consumer base on a global scale.
UNIQLO is one of the apparel companies that has enjoyed significant growth and expansion on different organizational, sectorial, and market parameters of operation due to the subsequent economic growth on a global scale. Founded in 1949, the company began as a textile manufacturer and later on ventured into apparel production (Lamare, 2019). The Japanese apparel producer is mostly owned by Tadashi Yanai and his family members, who possess significant share portions of Uniqlo. However, Tadashi Yanai is credited with the expansion of an apparel shop that he inherited from his father from a single retail outlet to a global apparel conglomerate. Uniqlo enjoys long-standing growth in the UK. With the vision of becoming the leading and bold retailer of clothes across the world, Uniqlo adopts a customer-driven approach. The mission is to provide customers versatile styles, superior quality, and accessible prices.
Uniqlo strives to meet customer expectations by exploiting innovation to offer quality products at low prices.
Uniqlo has not only utilized technological advancement in the production of its products but rather in all its operational parameters. However, the firm’s use of technology does not write off its prior operation approaches that significantly contributed to making it the brand it is in the current period. For instance, while Uniqlo has currently developed e-commerce platforms that it uses in the marketing and sale of its products, the company still uses physical retail outlets (Lamare, 2019). Moreover, e-commerce and physical retail locations have a symbiotic sales relationship. This is best depicted by Uniqlo’s comment on the the subject, where the firm stated that 40% of all its apparel consumers preferred to collect the purchased items from its various physical retail outlets (Lamare, 2019). Therefore, the firm’s marketing and sales approach employ a comprehensive plan that capitalizes on different strengths and merits that it has strategically attained over the period it has been in operation.
- ii) Focus for your report and innovation/improvement activities (300 words)
One of the chief merits of private commercial organizations is their ability to swiftly change and adapt to the dynamic needs indicated by market research and feedback in the preferences of their customers and target populations. Therefore, entrepreneurial innovation refers to a firm’s capability to commercialize innovative ideas applicable in the context of their operations (Unay & Zehir, 2012). In the context of an apparel company like Uniqlo, innovation will suffice apparel development and production technologies, product distribution approaches, market research, operational data collection, and analysis methods, and customer engagement and interaction methods, to mention a few.
After experimenting with various product development and production concepts, Uniqlo has finally established product development and production approaches that match the needs and purchasing power of its customers and target population portions (Uniqlo, GU., 2019). However, it is vital to note the company attained several unwanted outcomes when it was experimenting with various product concepts. These include a significant increase in its product portfolio and product design based on the many fashion trends observed in the market before it established its current position is the most suitable to its organizational and marketing settings. For instance, during prior periods, Uniqlo significantly expanded its product portfolio by creating and producing wide array apparel products that captured a wide array of fashion patterns and trends observed in the market (Uniqlo, GU., 2019). Consequently, the outcome of the above production strategy by Uniqlo was many product lines that did not necessarily translate into the firm’s commodity sales.
Moreover, the change of the firm’s product concept and the increase of its product lines also meant that some of its products during the period were not within the firm’s core price point (Uniqlo, GU., 2019). Consequently, the product lines that varied from the price point resulted in low sales from the firm’s target population. Subsequently, the appropriate innovation concept should not be one that adversely impacts its current optimal operational approach but instead, one that builds on it.
iii) Suggested improvements/innovations (300 words)
Consumer Engagement and Consumer Information Generation Innovation
Market Penetration Innovation
Increasing Uniqlo’s market penetration intends is a measure that will counter its slow market penetration and simultaneously also enhance its brand awareness. In the current period, Uniqlo’s e-commerce stores have indicated a considerable potential for generating product sales and, more so in the developed western nations where online shopping has been more embraced than in developing countries. The rapidly growing e-commerce sales in western countries are indicative of a critical aspect of the western country shopper, which is a value for shopping convenience (Uniqlo, GU., 2019). Therefore, Uniqlo should research and experiment with various e-commerce website designs to establish which one would optimize the ease and convenience of the online shopper based on market preferences. Consequently, the enhanced online shopping experience is likely to facilitate an expansion of the firm’s customer base since individuals who abort the shopping process in commerce sites due to various e-commerce technical aspects will be retained.
Diversification Innovation
The growth and expansion of any firm’s commodity portfolio is an essential growth and relevance element of any business that intends to keep up with dynamic market trends and consumer preferences. However, the firm’s experience with product concept also emphasizes the need for caution and an informed strategy in the task. Uniqlo should involve its current customers in the development of its new product lines to ensure that it does not wander from the preferences of its consumers. This can be attained by the collection of information from consumers both from its online and physical retail outlets. For instance, simple surveys delivered to customers about any products that they purchased that were not available in the store would be instrumental in determining the current needs of their customers that they were not meeting. Consequently, the development of new product lines based on the information would address the firm’s lack of diversification weakness.
Market Development Innovation
In Uniqlo’s context, market development innovations should encompass initiatives that facilitate the expansion of the firm’s market niche. Uniqlo’s low brand awareness is a weakness indicative and complementary to another of its weaknesses, which is slow market penetration in foreign nations. There is a broad literature on the subject of poor organizational performance for global businesses that venture into foreign markets despite their exemplary performance in their nations of origin. One of the critical factors that explain a variation of business performance in different markets is a variation in consumer culture and consumer behavior. Therefore, Uniqlo should conduct market research regarding its different foreign markets about various critical aspects regarding consumption behavior and the main one being consumer information channels. Subsequently, the firm should alter its products and strategically advertise using approaches that target the information channels used by different target populations in foreign nations. Moreover, the advertisements developed should portray the commodities featured as appropriate in the cultural context of the target populations.
Product Development Innovation
One of the product development aspects indicated in Uniqlo’s weaknesses in the SWOT analysis conducted is the firm’s long product development cycle. Any variations in the firm’s product development cycle from those of its competitors in the same caliber both in terms of time and commodity quality are indicative of its operational inefficiencies relative to its competitors. These could either be at a technical capacity, working force capacity, or bureaucratic administration levels. Subsequently, Uniqlo needs to assess its various operational parameters to establish the cause of its product development cycle inefficiencies. Consequently, the firm should increase its resource allocation in its R&D departments and also other organizational segments that impact the area to enhance its effectiveness in the area. Subsequently, achieving a short product development cycle will also address one of the firm’s threats, which is the ability to keep up with the taste and preferences of its target population.
- iv) Idea Evaluation and Selection (400 words)
While an evaluation of a firm’s operations and performance on its different operational aspects and based on different measurement parameters may be critical in indicating various improvement opportunities, the resources available for the changes indicated may be limited. Consequently, firms often have to consider the merits provided by different advancement possibilities to establish which possibilities facilitate the utmost merits to the organization in order to prioritize their implementation (Stevanoic. et al., 2015). Subsequently, there are various idea evaluation and selection frameworks that have been formulated for use in the organizational context. Below are some of the factors used to evaluate the above-discussed improvement suggestions in Uniqlo’s context and select one that should be prioritized for implementation.
Direct Value Created by the Idea
The first factor that should be considered in the evaluation of the four innovations suggested for Uniqlo is the directly anticipated impact of each of the suggestions. The market development innovation presented indicates a likelihood of impacting the operations and outcomes of Uniqlo at a more significant level relative to the others. The first reason supporting the above assessment is the fact that market development innovation involves the use of strategies that are crucially instrument in the expansion of any firm’s market niche. This is especially the case when a firm is venturing into a new market where it is not a sectorial leader. Thus, it is presented with a huge portion of the target population that it can convert into its customer base.
Incremental Value by the Idea in Other Organizational Aspects
Another instrumental factor that warrants the choice of the market development innovation as opposed to the other three possibilities suggested the innovations capability to positively influence positive impacts in other organizational aspects on a secondary level. The secondary benefits attained in the organization are critical since they supplementary impacts beyond the scope of the innovation’s purpose (Stevanoic. et al., 2015). The market development innovation still stands out as the improvement option that will facilitate the highest level of incremental value across Uniqlo’s organizational operations and their subsequent cumulative platform. For instance, the market development innovation strategies suggested for Uniqlo are expected to have tremendous impacts in addressing multiple weaknesses and threats indicated in the firm’s SWOT analysis. These include slow market penetration in foreign nations, low brand awareness in new markets, the inability to penetrate foreign markets effectively, and the high competition experienced in foreign markets where the company’s presence is lower than its competitors in the industry. Consequently, it can be surmised that the market development innovation will positively affect even some of the areas that were primarily targeted by the other suggested innovation secondarily when implemented.
Practicality, Urgency, and Uncertainty Associated with the Idea
Scenarios where organizations venture into new markets to expand their operations to a global scale typically call for significant resource investments in particular operational parameters before it attains a competitive advantage in the new markets. The practicality of the innovations thus refers to the capability of the suggested possibilities in contributing to the core processes established to enhance a firm’s presence and competitive advantage in a new market setting. The market development innovation in primarily concerned with the increase of Uniqlo’s market niche in foreign markets; thus, it may be considered to significantly contribute in enhancing a firm’s performance in a new market.
The urgency of innovation can be considered to be an answer to whether innovation’s improvement can be procrastinated to future periods without leading to any adverse impacts in Uniqlo’s operations in foreign markets. If Uniqlo fails in the attainment of more market segments in international markets keeps the company in danger of being pushed out by its competitors and accumulating losses during future periods that can hinder its operations and sustainability in the new markets. Consequently, the innovation indicates a more urgent implementation relative to the other four.
Finally, the uncertainty factor is concerned by the likelihood of investment in each of the four innovations translating into the desired outcomes in Uniqlo (Stevanoic. et al., 2015). Since the firm is relatively new in the foreign markets, the target population has not been well familiarized with its products. Consequently, attributing various performance deficits in the new market to product creation related factors is less likely to be the most influential cause of the weaknesses depicted relative to marketing-related factors. Subsequently, there is a high chance that investment in market development and penetration innovations will translate to short-term improvement in the firm’s operations relative the diversification and product development innovations. Therefore, since the market development innovation promises more influence on organization outcomes than market penetration innovation, it should be prioritized.
- v) Implementation of the selected idea (600 words)
Potential Barriers anticipated and how they will be Addressed
The first barrier anticipated in the implementation of the proposed innovation in formulating the appropriate knowledge generation methodologies to be used in the process while simultaneously decreasing the risk of deviating from the desired outcomes (Uniqlo, GU., 2019). The above barrier can be countered by diversifying the firm’s innovation implementation to include employees from the target culture. Consequently, the new input from members of the latest market population will ensure that Uniqlo’s implementation plan is relevant to the culture and behavioral patterns of the target population.
Another potential challenge expected involves establishing the validity and reliability of information attained from the consumer-based survey envisioned before being implemented on a full-scale level in the firm’s context. The above challenge can be addressed by applying the measures suggested by the data collected by information generated from the envision research through using it in a limited operational context (pilot project) before implementing them in the full scale of Uniqlo’s operations in the new foreign economies.
Complementary Factors and how they may Impact Progress Forward
There are various factors attributed to Uniqlo’s unique context that are anticipated to complement the firm’s progress initiatives in the new foreign markets and its global expansion as a whole. The first complementary factor will be the significant period the company has been in operation in the apparel industry since it initially ventured in the area (Uniqlo, GU., 2019). The above factors suggest that the firm is already well-familiarized and experienced with most of the operational aspects of the sector even though its experienced were not attained in the new markets it entered during its global expansion.
Another factor that will be in favor of Uniqlo’s recommended progress initiative is the company’s huge size, both in terms of assets and revenues (Uniqlo, GU., 2019). The vast organizational resources will play a key role in facilitating innovation implementation without the various inconveniences caused by limitations in resources.
Most Critical Assumption Underpinning the Idea and how to Test it using Customer-Based Market Research.
The most critical assumption behind the innovation suggested is that most of the weaknesses indicated by the SWOT analysis conducted are in one way or the other attributed to population factors in the foreign markets that Uniqlo has been unable to address until the present period successfully. The assumption can be tested by observing different population factors in the markets that the firm is successfully ventured and assessing whether they are reasons behind its performance outcomes in the new markets where it has ventured during recent periods.
The methodology used to carry out the Customer-Based Research recommended Above (aims, data collection method, & analysis)
The customer-based research recommended for Uniqlo should be conducted using a mixed-methods research approach to facilitate the generation of both qualitative and quantitative data regarding the different market aspects under study (Harwell, 2011). Consequently, qualitative data should be collected using tools such as fill-in-questionnaire both in hard copy and soft copy formats. Additionally, quantitative data could be attained from various secondary sources. On the other hand, qualitative data should be collected using focus groups created from the firm’s target population portions. Besides, the quantitative data collected should be analyzed using various statistical tools, while the qualitative data using techniques such are narrative analysis, thematic analysis, and coding (Harwell, 2011). Combined, the two forms of data generated from the study will provide more abundant information with regard to the issues being explored.
Part B (Individual Reflective Piece) outline
What?
The process of executing this research played an instrumental role in providing me with more insight into the nature of operations in the apparel sector and also the approaches used by a consultant in the evaluation of a business and informing its improvement path and methods. However, the main lesson learned is that consultants should not be limited to the details of a firm’s operations in its various operational aspects. On the contrary, consultants should employ a comprehensive approach in the assessment of the business to attain a more holistic understanding of its overall operations and outcomes. Consequently, a consultant is capable of formulating active organizational improvement initiatives that promise significant organizational impacts in the most critical areas indicated by the evaluation. Thus, the optimal change strategies can be facilitated relative to an organization’s contexts and operational constraints.
Moreover, I also learned the paramount role that business theory literature plays in informing business practice in the real-life economic context. This is especially the case in the high organizational levels where a firm’s leadership is responsible for the formulation and execution of different operational strategies that are used as a means of pursuing the firm’s goals. In the task issued, the Ansoff Matrix was an instrumental tool used to provide a framework for innovation recommendation for Uniqlo. The use of the Ansoff Matrix as an operational improvement framework for possible innovations for Uniqlo ensured that the main operational parameters that influence a firm’s outcomes during operations were addressed.
So What?
The lessons learned that are discussed in the previous section changed my views both on business operations and consultancy. The use of a big picture perspective both in consultancy and business operations emphasized by my experience in the completion of the summative report triggered by an impact in careers in the analytical line such as financial and economic data analysis, market research and analysis, and investment consultancy, to mention a few. This is because the levels of influence created by operations in the described career lines have a high potential of impacting firms at both an organizational and industrial level. For instance, in the summative business report on Uniqlo, it was illustrated the approach that can be used by a consultant in the evaluation of a business, the various improvement possibilities that can be developed from the evaluation, and the impact of the implementation of each recommended improvement. Consequently, the hypothetical situation requiring the implementation of only one of the formulated possible innovations in various operational parameters is representative of the constraints in real-life business contexts. As a result, the implementation priority was based on the assessment of the impacts anticipated from each recommendation in the organization’s context. Moreover, the significant impact that can be caused by consultancy and management careers subsequently translate to the effects that either organizations or markets have on populations, which was a core interest behind my decision to pursue a business career path.
Now What?
The realizations described in the two above-sections during the completion of this task were vital in clarifying the path a will take in a future career. Most career paths generally start with a broad area of focus and lead to more specialized tracks as a student progresses. However, sometimes it may be difficult for some students to objectively choose a specialization path that best captures their interest and technical capability. Realizing one’s area of interest earlier on can be instrumental in facilitating the choice and achievement of one’s career growth at the end of their academic journey. This is because a student is in a position to start cultivating the required skills earlier on that will eventually lead to the educational and career goals envisioned. This scenario is the vision I currently harbor for myself, where it concerns my academic journey and career path moving forward.