Paris Miki

Capitalization 5.91075 yen (as of March 2001)

Sales 79.36 billion yen (term ended March 2001)

Employees 4,639 (as of March 2001)

Outline of Operations A specialized eyewear chain handling mainly glasses and related products. Outlets in Japan and overseas include suburban retailers, tenant shops, and "built-in" shops.

Strengths

• Technologically advanced

• #1 in Japan and #3 globally

• Extremely well known in Japan for its all retails that pursue of individual customer satisfaction and needs, from beginning to end

• "Web-mimir" service that allows customers to seek out their ideal eyewear via the Internet, and then actually try the glasses on at the nearest shop

• Industry leader in innovation

Weaknesses

• Maintenance issues for their eyewear system

• Turnover as a result of technology

• Customization takes longer

Opportunities

• Expand to the US and elsewhere

• Internet customers globally

• Increasing senior population in Japan

• The increase in computer/video usage leading to bad vision

Threats

• Lasik surgery

• Higher priced eyewear

• Designer eyewear not available through them

• Competitors

Paris Miki sells to everyone that can access the web or go into a store. Paris Miki places great emphasis on the concept of "brick & click." "Brick" refers to real outlets, while "click" refers to a computer mouse; that is, Internet operations. The emphasis is on how to establish a link between real shops and e-commerce---in other words, between the real world and the "network world." In the not-too-distant future, we may very well see the day when customers can receive exactly the same services at Internet shops as they do at actual retail outlets.

The degree of rivalry can be seen through their suppliers. Paris Miki developed its own in-house applications, while NIC and the NEC Group was responsible for the development and modification of driver modules for the various peripheral devices, thus completing the construction of a Linux system with connections to widely varied peripherals. These suppliers could be lured away to competitors if the price is right. This can create problems with buyers as well due to the fact that it could take longer to receive your glasses due to the customization in their lenses. New entrants into the internet sales force are continually sprouting up because of the allure of not having to have the overhead of a storefront. This could raise the competition that could possibly do things cheaper and more efficiently.