1. Key strengths
MUJI is currently Japan's largest Life Style Store (lifestyle proposal shop), and in 2017, MUJI get brand preference survey ranked first. The reason is that the product style, MUJI will remove some unnecessary processing and color, so that consumers can pay attention to the material and basic functions of the product. Compared to the complexity of the design, this simple style will make consumers feel interesting.
MUJI would be based on the needs of customers when they make products, and they would also design questionnaires, or customers can through the "quality of life research institute" network platform to put forward opinions and suggestions for products. In terms of quality control MUJI would vertically integrate all manufacturers, from product planning, design, materials, and production and sales, as adjusted stock management's business, the whole value chain to create enterprise, its characteristic is "full participation" rather than "all" vertical chain, good for quality control. MUJI has 2 ideas, one is "Good things without brand", and another is
"Creating value of quality products", and the power to give customers a simple comfortable good life, which attracted many customers to buy their products.
So we think MUJI has the advantages as following：
1) Brand image
2) The ability of communicate with customers 3) Quality control capability
4) Brand culture
2. Key weakness
Although MUJI sells many kinds of goods, each type of commodity can choose very few styles, so it will become when the consumer buying, there is no other goods can choose.
So we think MUJI has the disadvantage as following：
Less product style
3. Superfluous Strengths
In our group’s opinion, we think there are two superfluous strengths. The first one is the capability of corporate social responsibility. Nowadays, corporate social responsibility is an important issue, more and more companies pay lots of attention on doing CSR. Some researches and case studies also indicated that the CSR of a company might raise brand preference and make the brand image better. But when almost every company are doing CSR, it is not a key strength for MUJI.
The second superfluous strength of MUJI is the capability of customized service.
MUJI offered MUJI Yourself- stamps service, interior advisor, styling advisor and embroidery service. Although those services are strength of MUJI, but they are not the main strategy which MUJI attract consumers.
Figure 15. MUJI Yourself
4. Irrelevance
Not putting any logo on their products is a feature of MUJI, but it is also a weakness. Others might easily copy their products because the style of MUJI is simple and they didn’t put any logo on their products. Fortunately, most of the consumer of MUJI buy their products is because of them like the life style of MUJI and them like this brand. It means that MUJI own a high consumer loyalty. So we put considered
“no logo on their products” as an irrelevance.
Figure 16. Resources and Capabilities
5. VRIS analysis
5.1 capabilities
1) The ability of communicate with customers
MUJI would use questionnaire to investigate customers’ preference and use customers’ ideas to develop and revise its products. The ability of communicate with
customers is a valuable capability, but for the rareness, costly to imitate and hardness to substitute are easy for other firms to capture, so MUJI would experience competitive parity and get average returns.
2) Quality control capability
In terms of quality control, MUJI vertically integrate all manufacturers and participate in each process, so MUJI can supervise the quality of products. The quality control capability is quite valuable; however, when it comes to rareness, costly to imitate and hardness to substitute are relatively easy to use by the other firms. That’s why, MUJI would suffer competitive parity and get average returns.
3) CSR
There are more and more people pay attention to CSR and MUJI do really well on this part. MUJI cares about the materials its use and try to reduce the poisonous additive. So for the CSR, it is a precious capability, but now there are many firms try to do this, it quite easy to imitate and easy to be substituted. Consequently, MUJI would result in competitive parity and get average returns.
4) Customize capability of some products
MUJI emphasizes simple style on their products, and they put the concept of
“leave blank” in their design to let consumers add their own idea and create personal characteristic on the product. For example, some of the MUJI stores provide seals, so consumers can design their personalized notebooks, and they could also make their own clothing bag by sewing patterns or drawing. Consumers could make unique products by themselves, so the customize capability is valuable. But there are so many personal studio and shopping websites offer customized products, so the rarity, costly to imitate and hardness to substitute are easy for other firms to catch up. As a result, MUJI has competitive parity and get average returns.
Table 4. Capability
5.2 Resources
Brand image and Brand culture
Brand image and brand culture of MUJI are valuable. MUJI provides simple, natural and good quality products, and also pay attention to environmental issues, so the consumers have favorable comments on MUJI. There are very few companies with brand image and brand culture, so it is costly to imitate and hard to substitute for other firms. Thus, MUJI has sustainable competitive advantages and get above
Resources
V R I S
Competitive consequences
Performance implications
Brand image ✔ ✔ ✔ ✔
Sustainable competitive advantage
Above average returns
Brand culture ✔ ✔ ✔ ✔
Sustainable competitive advantage
Above average returns