25. Vertical Integration
1980s --- Design
1983 --- First Store
1985 --- Independent
procurement
1989 --- Ryohin Keikaku Ltd
Now --- After sale service
32. Citation
• What is MUJI? http://www.muji.com/us/feature/whatismuji/
• Behind The Label: MUJI, on July 25, 2012, by Jessica Marati, ecosalon.com/behind-the-label-muji/
• Useful and agreeable, http://web.archive.org/web/20090527173256/
• http://www.usefulandagreeable.com/muji.html
• Corporate Information ryohin-keikaku.jp/eng/corporate/
• Muji Economics Project,
http://webcache.googleusercontent.com/search?q=cache:http://www.plkclscmc.edu.hk/resource/subjects/econ/M
UJI.pdf
• http://www.liutan88.com/ltfzd/mujijfycxd_1.html
Hinweis der Redaktion
MUJI, originally founded in Japan in 1980
It is derived from its Japanese name, which means “no-brand quality goods.”
It is a public trade company, they have over 700 stores across over 26 countries, and offers over 7000 products.
Muji positions itself in terms of three basic ideas: “Simple, Functional and Affordable”
For people who is unfamiliar with Muji, I am going to show you a video which briefly explained what is Muji.
As mentioned in the video, Muji offers a wide variety of high quality products including: household goods, apparel and food.
Many American consumers viewed MUJI as the quiet version of IKEA
It is unclear on what the organization does, and it could be easily get mixed up with another similar brand. Ex: IKEA also have the simple design and familiar products
Same for their vision, it is unclear for the most audience on what their goal is.
However, in my personal opinion, MUJI did follow their vision by continuing to expand their market by offering new creative and high quality product
Ex: Muji selling office supplies, household goods, travelling tools and apparels, then Meal Muji- restaurant, muji car 1000, 2001 product collaboration with Nissan
Yes, Muji does have the organizational value because it does follow its mission and vision to expand their market to offers simple, nature good quality of products to consumers
Pest
industry
Five forces
Increase in Tariffs (political-legal)—give example/numbers/laws to support it
Eco-friendly life style(social-cultral)
Globalizationon
In crease in E-commerce (technological, social cultral)
Popularity of customized products
Environmental protection
High inflation rate
Competition
Rise of cost of raw material
Labor cost
名创优品
It is actually not eco friendly
Behind The Label: MUJI, on July 25, 2012, by Jessica Marati, ecosalon.com/behind-the-label-muji/
Embrace internet
How Muji succeed from O2O, 2015/12/02 www.woshipm.com/it/244490.html
Competition
Rise of cost of raw material
Labor cost
名创优品
Popularity of customized products
Environmental protection
High inflation rate
Popularity of customized products
Environmental protection
High inflation rate
Competition
Rise of cost of raw material
Labor cost
名创优品
Pest
industry
Five forces
In what stages of the industry value chain should we participate?
Related to the topic of vertical integration
What range of products and services should the we offer?
Related to the topic of diversification
Where should we compete geographically?
Related to the topic of geographic scope
Corporate Diversification: Expanding Beyond a Single Market
Vertical Integration along the Industry Value Chain
Diversification
Increase in:
The variety of products / services a firm offers, or
The markets / geographic regions in which it competes
Can be targeted towards:
Products
Geography
Product-Market
Provide economies of scale: reduces costs
Exploit economies of scope: increases value
Reduce costs and increase value
Related Linked: some businesses share competencies
1980. The Mujirushi Ryōhin was a private owned brand of Seiyu Corporation, its only responsibility is to design
Within 3 years, Muji received a lot of attention, became a very successful brand, and started its own store
In 1983, the first directly operated Mujirushi Ryōhin store opened
In 1985, Mujirushi Ryōhin gains more autonomy, It started overseas production and procurement, it is allowed to place direct factory orders
In 1989, Ryohin Keikaku Ltd became the manufacturer and retailer for all Mujirushi Ryōhin products and operations, including planning, development, production, distribution and sale.
In 1991, Mujirushi Ryōhin opened its first international store in London.
Design:
Muji products are not attributed to individual designers. There are, however, some designers who made their involvement public. The notable are Naoto Fukasawa Jasper Morrison, James Irvine, Sam Hecht,
Muji participates in design collaborations with other companies. In 2001, Muji and Nissan Motors produced the Muji Car 1000. Following Muji's no-brand strategy the car had no logos
Production
As well as its designers, ordinarily Muji keeps its manufacturers private.
collaboration with Thonet, the oldest German furniture maker
Design:
Muji products are not attributed to individual designers. There are, however, some designers who made their involvement public. The notable are Naoto Fukasawa Jasper Morrison, James Irvine, Sam Hecht,
Muji participates in design collaborations with other companies. In 2001, Muji and Nissan Motors produced the Muji Car 1000. Following Muji's no-brand strategy the car had no logos
Production
As well as its designers, ordinarily Muji keeps its manufacturers private.
collaboration with Thonet, the oldest German furniture maker
http://www.liutan88.com/ltfzd/mujijfycxd_1.
https://www.pinterest.com/pin/158540849354088003/ (Spain)
Often the first step in internationalizing.
Used by MNEs with relatively large domestic markets or strong exporters (e.g., MNEs from the United States, Germany, Japan, South Korea).
Well-suited for high-end products with high value-to-weight ratios such as machine tools and luxury goods that can be shipped across the globe.
Products and services tend to have strong brands.
Main business-level strategy tends to be differentiation because exporting, licensing, and franchising add additional costs.
Leveraging core competencies.
Economies of scale.
Low-cost implementation through:
Exporting or licensing (for products)
Franchising (for services)
Licensing (for trademarks)
No or limited local responsiveness.
Highly affected by exchange-rate fluctuations.
IP embedded in product or service could be expropriated.
In Japan, Ryohin Keikaku has directly operated 284 stores and supplies 117 outlets, as of January 2016.[10]
There are 303 International retail outlets as of January 2016 which include UK (12), France (12), Italy (9), Germany (8), Ireland(1), Sweden (7), Norway (4), Spain (6), Turkey (2), Poland (1), Portugal (1), United States (10), Canada (2), Hong Kong (14),Singapore (10), Malaysia (5), South Korea (14), Mainland China (128), Taiwan (33), Thailand (12), Australia (2), Indonesia (2),Philippines (7), Kuwait (1), UAE (3).[10][11][12]
In New York Muji supplies products to a design store at the Museum of Modern Art and maintains a flagship store.[9] Ryohin Keikaku has 284 directly operated stores in Japan, and has 5,271 (including 3,886 part-timers) employees.[13]
Used by MNEs to compete in host countries with large and/or lucrative but idiosyncratic domestic markets (e.g., Germany, Japan, Saudi Arabia).
Often used in consumer products and food industries.
Main business-level strategy is differentiation.
MNE wants to be perceived as local company
Moved Muji Award from Japan to China for the first time in 2014
Partnered with Alibaba in China.
Partner with Thonet in Europe.
What is MUJI? http://www.muji.com/us/feature/whatismuji/
Behind The Label: MUJI, on July 25, 2012, by Jessica Marati, ecosalon.com/behind-the-label-muji/
Useful and agreeable, http://web.archive.org/web/20090527173256/
http://www.usefulandagreeable.com/muji.html
Corporate Information ryohin-keikaku.jp/eng/corporate/
http://ryohin-keikaku.jp/eng/corporate/company.html
http://www.liutan88.com/ltfzd/mujijfycxd_1.html
