1) 2) sive use of y. sherhan, 2018 y Publishinsg W15431 WHAT BUSINESS IS ZA hand
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1) 2) sive use of y. sherhan, 2018 y Publishinsg W15431 WHAT BUSINESS IS ZA handling of amanagerl suation Theauhor may have dsgused certain without the rights lorm or by any opyight hoider Reprodbuation of hs material is not covered under authorizabon Onfario, Canedis Nea ow T: (0 519.00a (e What would 2016 have in sto for Indics and is ag?bip brand Zara widh its ast fash model? It had years with Zara's approach. taken years for new competitors to build business models that could cffectivery many had why would anyone invest in a fashion manufacturer and retailer who produced cost labour market of Spain (versus Asia), spent very little on advertising, ostens intuitive business their clothes in the high- g overspent on positioning high-end stors in chic retail districts across Europe, carried substantially less inventory thn competitors, manufactured clothes that were, arguably, of a lesser quality and finally, c harged 15 per c less at the cash register. By all accounts, this approach was viewed as a formula for disaster in competitive retail fashion industry the time, most observers were just not forward thinking cnou gh to sce the valuc in Zara's approach. x took great pride in proving them wrong. By 2014, Zara was, by far, the number retailer in the world by many measures. It really was its unique business model that enabled one fashion Inditex, however, cou ld not dwell on past successes, as the future was full of significant challenges ith the many new upstart and copyeat competitors who had infiltrated the market, These new firms would, more than likely, also enjoy a good degree of success. Disruptive innovations, such as Zara's business model, inevitably were copied. Examples of how industries evolved around disruptive business models included Southwest Airlines leading the discount airline industry and Wal-Mart dominating the discount department store industry. Perhaps it was time for Inditex to reinvent the industry business model, once again. u huet Sherhan in Service Operations Management (MGT 3121) taught by Cory Labanow, CUNY-Baruch College trom Ja
Explanation / Answer
22 - Competitive Advantages:
A - Their name-brand fashion designers.
D - Their ability to go from design of a product to availability of that product in stores much more quickly than their competitors.
29. Reasons for Zara's success:
B. They have spare manufacturing capacity so that they can respond quickly to new trends. (This is not explicitly given but by infering small batches, we can somewhat infer that they would have some "additional/spare" capacity in order to manufacture new trends quickly. Please understand this reasoning first and then decide if you want to actuually tick this as the answer.)
C. They locate themselves near other high-end clothing retailers (Page 7, second para - "...situated in high-end retail sectors of urban cities...")
D. Their manufacturing and decision-making is geographically very dispersed. (This can be the answer if by "decision-making" it means to say "designing the new trends" since designing happens in Italy and manufacturing across 11 factories located across the world).
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