World Co Ltd Case Analysis

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Supply Chain Management at World Co. Ltd.

Facts of the Case

Industry Facts:
▪ Specialty Retailing Sector -Women’s apparel industry in Japan ▪ seasonal industry
▪ products have short life cycles and extremely uncertain demand ▪ International Competition
▪ 3 Distribution Alternatives- company-owned stand alone stores, shops in fashion malls, and shops within department stores “store-within-a-store”

Company Facts
▪ Operates in women’s apparel industry
▪ Company uses both wholesale and retail distribution methods ▪ Wholesale items are sold in other stores (retailers) ▪ Specialty store Private-label apparel (SPA) merchandise which includes the OZOC and Untitled brands was sold at stores owned by World ▪ Uses SPARCS, a business process system that allows World to monitor sales trends and focus on customer demand to maximize the efficiency of store support operations ▪ By late 1990’s World sold over 40 different brands in approximately 7,000 shops and stores ▪ World’s divisions are organized by product (brand name) ▪ 1998- World Employed 2,394 workers

▪ Net sales $1.8 billion and net income of $32million
▪ Company held a 3.5% share of the Japanese apparel market ▪ Major U.S. competitors are Gap Inc., The Limited
▪ Rooted in Domestic Manufacturing

Brand Facts
▪ Targeted at female customers 25-29 years of age
▪ Annual Sales 2.2 million
▪ Introduce new collections twice annually (Spring-Summer; Fall-Winter) ▪ Introduced New Products Every 2 Weeks
▪ At the end of 1998, Untitled Brand could be Found in 110 Stores

Qualitative Analysis

Industry Analysis:
Lack of Channel Power
Uncertain Demand
Inventory Risk

Fewer Variations In Store Assortments
Fast Changing Fashion Trends (Social)
Low Inventory Levels
International Manufacturing
Company Analysis
World’s High Inventory Turns (5/year) (Operations)
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