Analysing and Evaluating Fast Retailing to Enter to Indonesia Market

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* PART1-Analysing and Evaluating Fast Retailing
* Resource Base

Tangible Resources:

Fast Retailing is a holding company with 2,222 stores around the world. The specialty retailer Uniqlo is the group mainstay operation and has grown by producing casual wear in reasonable prices. (Fast Retailing, 2012) Appendix.1&2 Its chain stores size is typically 1600 square meters. It has 70 partner factories just in China and more in Asian countries. According to the financial report, FR gains positive results in both sales and income in all businesses. It shows progress 16.7% on sale and 16.9% on Operating income, YOY. Ordinary income increased 23.4% and net income 23.5%. Appendix.3 FR uses the latest Japanese fibre technology that enables it to design innovative products. (Fast Retailing, 2013)

Intangible Resources:
FR continually offers innovative clothing for example, AIRism, is a new brand of highly functional thermal wear featuring the latest Japanese fiber technology. To monitor the whole process of production FR employed a team of engineers called Takumi. They are experts in the Japanese textile industry. (UNIQLO, 2012) HEATTECH is also an innovative material which enables consumer to wear thin, light clothing during cold winters. FR has 18,854 full time employees, (Fast Retailing, 2012) and promotes personal growth among them; they respect employees and help them to create environments to become globally skilled workers. FR has established a good relationship with its customers as well as its employees, business partners, shareholders and communities. (Fast Retailing, 2012) Appendix.4 FR is the first in Japan domestic clothing retail ranking and forth in global industry. (Fast Retailing, 2013) From studying the resources, it can be concluded that FR has a strong intangible basis including innovation, reputational and human. In terms of tangible resources it has very good Financial, organizational and physical condition. It suggested improving the technology that is being used in production department to reduce the labour and monitoring costs. * Overall Business Network

FR uses SPA Business model (Appendix.5) which covers the whole process from product design, manufacturing, distribution, retail customer and its feedback. According to FR, (Fast Retailing, 2011) this model shows the interaction between different parts in vertical and horizontal directions. The use of this model enables FR to minimize its costs by refining the production according to the sales tendency.

Planning:
By negotiating directly with manufacturers and high amount of order the material supply with low price and high quality. The R&D department discovers latest styles and patterns for next year and after studying with production, merchandising, materials development and marketing departments they finalize the product, then merchandisers according to the marketing strategy arrange the quantity of the product.

Production:
After setting volume, the production begins. All the stages including Spinning and dyeing, Knitting and sewing, Processing and Finishing are controlling by quality and safety inspectors then the product will be shipped to destination. The production department is connected to the customer feedback, and they apply customer’s concerns through their weekly meetings with partner manufacturers. FR expanded production in Asian countries as well as China which produces 80% of products.

Sales:
The inventory control monitors the weekly sales and stocks to make sure that they can fulfill the orders. FR applies different marketing tools, such as campaigns, advertising on TV and other media, weekly flyers and promotion in weekend newspapers. In addition to selling the product in stores, customers can order online in Japan, Hong Kong, China and Taiwan. Customer Centre reflects the customers’ comments to improve products and services.

The “Scope of Collaboration Framework” will reveal the various collaborative...
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