Analysis of Muji Ltd

Muji is a Japanese company popular for its production of high qualityclothes at an affordable price. The company makes money through itsproduction and sale of quality products to the local andinternational market. Most of my outfits are from the company, hencemy interest in its mode of operation (Muji 2).

What makes Muji successful is its primary strength of minimizingcosts. The company minimizes costs with an aim of producing highquality clothes at an affordable price. Stages of production such assorting, sizing, and polishing are eliminated in order to lower thecost of production (Jones and George 199). The company also insistson simple packages all aimed at lowering the production cost. The lowcost of production enables the company to set low prices for itsproducts and still maintain a significant margin. If competitorstried to lower their prices as well, they would run into lossesbecause their mode of production is expensive and extravagant, unlikeMuji.

The major weakness is that most consumers associate low prices withpoor quality or less class. In a world where everybody tries to dresslike a superstar, not many consumers are willing to wear clothes thatmany people are likely to afford because of their low price.

Opportunities for Muji lie in developing countries where people donot have enough to spend on clothing. Such demographics do not carethat the clothes they are wearing are matched with those of severalother people.

To become more successful, the Muji should improve on packaging andadvertising to overcome competition. This is because advertising andwill create the uniqueness of a firm’s products and build acompetitive advantage in the industry (Jones and George 23). Theprimary threat to Muji is the entrant of new competitors with thesimilar ideas regarding quality, packaging and production. Luxuryoutlets may change their production methods to create lower pricesfor their products.

In conclusion, Muji has a competitive advantage over its competitorsbecause it has mastered the most important aspects of business-quality and pricing. The opportunities are numerous while the threatscan be avoided with increased marketing.

Works Cited

Muji. About Muji. Web, 2016. Retrieved from&lthttp://www.muji.eu/pages/about.asp&gt 11 March, 2016

Jones, Gareth., and George, Jennifer. Essentials ofContemporary Management, McGraw-Hill Education, 2012, Print