Which feature primarily drives Uniqlo's ability to offer affordable prices?

Prepare for the Uniqlo AA Test. Study with flashcards and multiple choice questions, each question comes with hints and explanations. Be ready to ace your exam!

The capacity of Uniqlo to maintain affordable prices is primarily driven by its efficient supply chain management. This approach encompasses various elements, such as streamlined production processes, strong relationships with suppliers, and effective inventory management. By minimizing waste and reducing costs throughout the supply chain, Uniqlo is able to pass on these savings to consumers in the form of lower prices, making stylish and high-quality clothing accessible to a broader audience.

In contrast, limited store locations would restrict market reach and might not significantly contribute to overall cost savings. High advertising budgets, while important for brand recognition, do not directly affect the pricing of products. Lastly, seasonal discounting practices can attract customers during specific times but do not serve as a fundamental strategy for keeping prices low year-round. Hence, the focus on efficient supply chain management stands out as the most critical feature in Uniqlo's pricing strategy.

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