Jonathan Thompson Case Study Write-up- Zara 27 March 2013 Zara strategic model began to evolve as they expanded to overseas markets‚ they began to invest in their manufacturing logistics‚ and IT‚ which included a JIT manufacturing system‚ a 130‚000 square-meter warehouse close to the corporate headquarters‚ and an advanced communication system to connect headquarters and supply‚ production and sale locations. Zara created a vertically integrated system that minimized distance and time between
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As completely as possible‚ sketch the supply chain for Zara from raw materials to consumer purchase. Zara makes about 40% of their raw material (fabric). The remaining 60% is outsourced from within Spain‚ mostly from the La Curuna. Designing of clothes at Zara is done by creative teams of over 300 professionals at the headquarters in La Curuna‚ Spain. They act on the information fed to them from the stores managers. The first stage in Zara’s production system is cutting of fabric. The design
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Assignment # 1 Strategic Practice Exercise: (page #81) 1. Score each competitive force in the airline industry and provide a brief rationale for your assessment. · Rivalry Among Existing Firms: (High) When one major company in an industry makes a change in costs or services that could potentially increase their clientele‚ a major competitor almost always follows suit. Price matching is a prime example of that‚ therefore the threat is high. West Jet is one company that offers flights at a discount
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ZARA CASE STUDY [pic] Introduction The history of Zara started in 1975‚ when the first store has been opened in Spain. It has been followed by several other stores all over the world. The company’s owner‚ Amancio Ortega‚ accumulated 340 million Euros (according to 2001 datas)‚ which is a remarkable growth if compared with other companies. Zara’s brand has become popular because of its quality and efficiency. The secret of Zara is to understand the customer’s need and demands and respond
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automates some of the comparisons‚ you will probably want to dig further into them. Background: Inditex is an international fashion retailer that designed‚ manufactured and sold apparel‚ footwear‚ and accessories for women‚ men‚ and children through Zara and other five chains around the world. The six retailing chains were organized as separate business units within an overall structure that also included six business support areas and nine corporate departments or areas of responsibility. They are
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CHAPTER Marketing Channels Delivering 12 Customer Value PRE VIEWING We now arrive at the third marketing mix tool—distribution. Firms rarely work alone in creating value for customers and building profitable customer relationships. Instead‚ most THE CONCEPTS are only a single link in a larger supply chain and marketing channel. As such‚ an individual firm’s success depends not only on how well it performs but also on how well its entire marketing channel competes with competitors’ channels
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Lecture1 1. What do you think of Cruise Safety？ 2. What do you think of Cruise Life？ Lecture2 3. What is the advantage to develop Cruise Economy in China？ 4. What is the Challenge to develop Cruise Economy in China？ Lecture3 5. Why there is no big Cruise Company in China？ 6. How should we develop Cruise In China？ Lecture4 7. What is the Core of Cruise Products? 8. What do you think of the different product demanding of Chinese？ Lecture5 9. How can we get a cruise product in China？ 10
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Porters 5 Forces: Suppliers The bargaining power of suppliers‚ one of Porter‟s Five Forces‚ can have a significant effect on an organization. Suppliers hold power over a firm when they increase prices and reduce the quality of their product and the firm cannot use their own pricing to recover these changes in costs. Switching costs is the “negative costs that a consumer incurs as a result of changing suppliers‚ brands‚ or products”. Switching costs can represent a variety of things: time and
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MGMT 6620: Operations & SCM HBS Case Study Zara: IT for Fast Fashion 4/9/2013 1. What is the Zara “business model”? What weaknesses‚ if any‚ do you seen in this business model? The value propositions offered by Zara to its main customers who are young‚ fashion conscious city-dwellers is offering new styles within the time-frame of several weeks as well as providing assortment of choices for customers and the uniqueness of clothing styles fitting individual customer needs. To achieve
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Jan. 29‚ 2013 Zara International Business Problem Productivity is the best word to describe the approach of merchants during the classical era. Merchants believed that being strong in productivity would bring higher profits. It sounded so simple and unbelievable from the very different and complex businesses today. However‚ businesses cannot forget the significance of productivity even centuries after it was first thought of. After reading the article about Zara International‚ I was very
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