Supply Chain Management at World Co. Ltd.
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% Gross Margin
Keen Competitive Intelligence- reviewed competitor’s brands every six months (Marketing)
Decentralized
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% Gross Margin
Keen Competitive Intelligence- reviewed competitor’s brands every six months (Marketing)
Decentralized