Transcript:

>> The line of eager shoppers stretched a full New York City block waiting to get a glimpse of the largest single brand clothing store on Fifth Avenue. When people walk in, you want them to have what reaction? >> Wow, I can't believe this. >> It's called Uniqlo. And the brand new flagship store is 89,000 square feet. About the size of a Super Walmart. With 100 fitting rooms, 50 cash registers. And a seemingly endless, meticulously organized selection of sweaters, jeans, coats, and scarves. >> It's huge. It's -- there's so much. I walked into another part of the store, and I was, like, there's more? >> Hi, welcome to Uniqlo. How are you guys doing today? >> Right now the clothing chain has 1,000 stores worldwide. But Uniqlo, owned by the Japanese company Fast Retailing, hopes to increase that four-fold. Simply stated, Uniqlo wants nothing less than to be the largest clothing retailer in the world by decade's end. >> Our chairman has said that he would like to be $50 billion in sales by the year 2020, 10 billion of which is to be here in the United States. >> A lofty goal for an apparel company that sold exactly that amount globally last year. >> And when you think of $50 billion, you can think of Best Buy. Which is a $50 billion company. Or Home Depot and Lowes. You don't think of apparel retailers of that size. >> Gap, the largest clothier in the U.S., has recently closed nearly 200 stores. Which may be just the opening Uniqlo needs to get a foothold on their way to dominance in the American market. >> It is a statement of our intention to revolutionize retailing in the United States. 

1. Uniqlo managers want customers to say, Wow! when they walk into the store because they are awed by the amount of clothing they see. Hopefully, the customers reaction will allow Uniqlo to sell clothes at the price the company wants to charge rather than at the price customers would rather pay. Customers have a stronger say in the price of products that stores offer when:

a. It would be difficult for the customer to integrate backward

b. A company sells a highly undifferentiated product

c. Customers buy small quantities of product

d. Customers face large switching costs if they change vendors

2. According to Porters 5-Forces Model, the issue identified in the preceding question concerns which aspect of Uniqlos environment?

a. Threat of substitutes

b. Bargaining power of customers

c. Threat of new entrants

d. Bargaining power of suppliers

3. Uniqlo hires a lot of employees and spends many hours training them. The goal is to have many skilled employees on the sales floor at all times. Customers should find it easy to get service, and the service they get should be top-notch. Employees are Uniqlos ______ resources.

Options:

tangible

intangible

human

4. Some aspects of Uniqlos strategy appear to be in line with Porters ideal of differentiation, while others are more aligned with cost leadership. Uniqlo offers customers high-technology clothing made with Heattech, a fabric that can trap moisture from the body and turn it into heat. The clothing is very lightweight but does a great job at keeping people comfortable when temperatures drop. No other store carries Heattech fabric. Heattech clothes are associated with a ______ strategy for Uniqlo.

Options:

differentiation

cost leadership

focus