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:
Threats:
Lack of Channel Power
Uncertain Demand
Seasonality
Inventory Risk

Opportunities
Fewer Variations In Store Assortments
Fast Changing Fashion Trends (Social)
Low Inventory Levels
International Manufacturing
Company Analysis
Strengths
World’s High Inventory Turns (5/year) (Operations)
47%...
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