MKT Assignment

II. Understanding the Marketplace

- Present a Situation Analysis – SWOT Analysis and include strategic
implications
SWOT
A MARKETING ANALYSIS FRAMEWORK
1. SWOT ANALYSIS.
One of the most important steps in developing a marketing plan is
conducting SWOT analysis. SWOT analysis helps the rm to evaluate
both the internal and external environment. Internal analysis identi es
Strengths and Weaknesses and the external environment assesses
Opportunities and Threats. For MUJI, knowing what they are good at
and how to take advantage of opportunities by the company capabilities
are critical. Also, when the company wants to launch a new product,
they should understand the risks and not developing a marketing plan
that is out of the company capabilities.
Here is the SWOT analysis of MUJI:
Strengths Weaknesses




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 1. Unique Shopping Experience
When customers go shopping in
the stores, MUJI offers a unique
shopping experience by their
minimalistic design. Their products
have no brand and are not
overpackaged. Also, their products
provide a good value to customers
because they are eco-friendly and
minimal which means simple and
easy to use.
2. Good Quality Products
Although MUJI products have no
brand, the company emphasizes
heavily on the product quality.
Their products are durable, smart,
adaptable and moreover they can
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1. Low awareness
In a market that customers are
highly brand-conscious, the “No-
brand” strategy makes the company
pay for effort for marketing to
compete with high-end brand
names. Customers know the brand
but they have not or hardly shop
there. Therefore, MUJI needs to
generate more ‘breakthrough’’ that
can create word-of-mouth for them
in the long run.
2. Pricing
It is clear that MUJI product has a
really good quality, however, their
products are generally priced
higher than other competitors. This
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3. Strong Identity 3. Innovation Drain
The philosophy, which MUJI MUJI products need more
breakthroughs which is the key to
products instill, is precious. They attract more customers.
value nature, eco-friendly, The simplistic designs, though
recycling, minimalism, good practical and beautiful, are losing
quality, anti- branding and peace. point for the masses who seek for
MUJI products brings the solutions novelty and excitement. Customer
to the population and small home tastes are variable which demand
space and global warming.
Opportunities Threats






 1. Global Expansion 1. Competitors
The domestic market is becoming MUJI has to face a erce
saturated for MUJI. Since the no- competition from many top bicycle
brand trend is emerging around the brand namely: Altruiste Bikes,
globe and economies, MUJI has the Argon 18, Aquila Cycle...Their
potentiality to gain by expanding competitors have years of
itself globally. The Japanese brand experience in bicycle market and
opened new stores in Canada this forces MUJI to nd out a good
market in 2014 and they also have strategy to compete with them.
outlets in New York and Los
Angeles. In Canada, the demand 2. Price Inconsistency Between
for cycling is rising which is a Markets
good signal for MUJI in this MUJI wants to launch a bicycle on
scenario that the company wants to the Canadian market. However, the
launch a bicycle to the Canadian brand should think about the
market. They will partner with a dif culty to align its prices with the
local retailer and will handle the USA market, highlighted by the
product line-up and store design. fact that Canadian customers tend
The growing purchase power of the to compare the prices with the U.S.
middle-class segment in Canada MUJI will have to cut its margin
presents a real opportunity. pro t and improve the ef ciency of
2. Demand for Sustainable their manufacturing process in
order to have lower prices on the
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