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    MUJI External Analysis

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    Jamie Chan Jiemin
    MUJI is considering expanding into the Malaysian furniture market. [1] The Malaysian furniture industry is large and growing, producing mainly wood and timber products, though competition is strong.[2] Demand may be falling slightly as population growth slows, but the working population needs furniture.[3] MUJI's minimalist styles would suit Malaysian culture, especially the largest ethnic group, though some color adjustments could increase appeal.

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    MUJI External Analysis

    Uploaded by

    Jamie Chan Jiemin
    1K views10 pages
    MUJI is considering expanding into the Malaysian furniture market. [1] The Malaysian furniture industry is large and growing, producing mainly wood and timber products, though competition is strong.[2] Demand may be falling slightly as population growth slows, but the working population needs furniture.[3] MUJI's minimalist styles would suit Malaysian culture, especially the largest ethnic group, though some color adjustments could increase appeal.

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    An external analysis of muji

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    MUJI is considering expanding into the Malaysian furniture market. [1] The Malaysian furniture industry is large and growing, producing mainly wood and timber products, though competition is strong.[2] Demand may be falling slightly as population growth slows, but the working population needs furniture.[3] MUJI's minimalist styles would suit Malaysian culture, especially the largest ethnic group, though some color adjustments could increase appeal.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views10 pages

    MUJI External Analysis

    Uploaded by

    Jamie Chan Jiemin
    MUJI is considering expanding into the Malaysian furniture market. [1] The Malaysian furniture industry is large and growing, producing mainly wood and timber products, though competition is strong.[2] Demand may be falling slightly as population growth slows, but the working population needs furniture.[3] MUJI's minimalist styles would suit Malaysian culture, especially the largest ethnic group, though some color adjustments could increase appeal.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10
    At a glance
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    The document discusses Malaysia's furniture industry through a PESTLE analysis and Porter's Five Forces framework. It covers economic, social, technological and other factors affecting the industry.

    The document mentions that Malaysia's furniture industry size is RM33 billion and is expected to grow. It also discusses that Malaysia mainly produces wood and timber products and has a trade surplus in exports vs imports.

    The document states that MUJI has low supplier bargaining power due to producing undifferentiated products with simple designs and no clear brand strategy. This means suppliers can offer cheaper prices.

    MUJI External Analysis

    PESTLE- Economic

    Market size of Malaysias furniture industry- RM33 billion and expected to


    grow
    Malaysia produces mainly wood and timber products
    The country has trade surplus ( Exports USD120.9 billion vs imports of
    USD111.9 billion_
    MUJI may have strong competition from locals but Malaysias furniture
    industry is doing well
    Husin, 2011
    PESTLE- Social
    Demographics
    Growth rate of Malaysia is falling gradually, from 1.3% to 0.2% in 2016.
    This means that furniture demand is falling.
    PESTLE- Social

    Malaysias working population is most likely to have families and require more
    furniture as well as the purchasing power to do so.
    Their population has had a 0.2% increase from the previous year. (Mahidin,
    2017)
    PESTLE- Social
    Culture
    In 2017, the Bumiputera is the largest ethnic group in Malaysia with 68.8% of
    the population
    Chinese consists of 23.2% and Indians at 7%
    Other ethnic groups remain at 1%
    MUJIs bland white and beige products are suitable for Malaysians, especially
    bumiputeras as they do not have taboos against colours
    However, white may indicate mournings for Chinese and Indians
    In is recommended that more red products be introduced as they signify
    happiness and luck for the Chinese and purity and good energy for Indians
    Smith, 2013
    PESTLE- Technological

    Significant changes due to internet and globalization


    Most stores have moved online or have both online and physical store
    Apps expansion- IKEA Places
    IKEA Places is an app that uses augmented reality to help customers with
    furniture measurements and design
    Lee, 2017
    Porters Five Forces- Bargaining Power of
    Customers
    High competition causes customer bargaining power to increase
    Many alternatives- Both from local and international companies
    Malaysia is the top 10 largest exporter of furniture (MIFF, 2017)

    MUJI has relatively high prices, for example a dining chair:


    MuJI- MYR899
    MF Design- MYR 449.50

    Information is easy to obtain- especially from online retailors so consumers have an


    easy time when comparing prices
    Porters Five Forces- Bargaining Power of
    Suppliers
    MUIJ has low supplier bargaining power
    Undifferentiated products- simple design and no brand strategy
    Consumers cannot see the difference between products

    Many suppliers offer cheaper and cheaper prices


    Durham, 2015
    Porters Five Forces- Threat of New
    Entrant
    Malaysias wooden and rattan furniture industry is worth RM20.03 billion and
    forecasted to grow
    This makes industry lucrative, and many companies will enter
    Government assistance also helps- especially for SMEs to help achieve the
    2020 vision.
    MITI, 2005
    However, issue like lack of skilled labout, access to financing, and
    competitiveness from the global front may hinder SMEs still.
    Porters Five Forces- Threat of
    Substitutes
    MUJI only provides residential furniture, as in furniture meant for personal
    consumption only.
    A substitute could be products like:
    Custom made furniture- fixed installation that cannot be moved
    Non- residential furniture- industrial furniture like those in restaurants or in hotels

    Many people opt for these options, willing to sacrifice design aesthetics in
    exchange for durability and lower costs.

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