Q1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Ans. The four companies shown given in the case have very different business models. Inditex owned much of the production and most of its stores. Inditex is thus a vertically integrated company. This gave Inditex a competitive advantage‚ which is quick response to the market requirements
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identify the trends and meet the demand with the help of its autonomously organized structure and its effective value chain systems. The present system followed by Zara has been very effective and very easy to maintain‚ which as a result has persuaded the company to continue without any change in the present system so far. The problem that Zara faces right now is that the system that they use‚ P-O-S (Point of Sale terminals)‚ runs on DOS which Microsoft does not support anymore and any hardware change
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market. Besides‚ H&H imposed a “silent management” within the partnership. Therefore‚ Colgate signed an agreement which assure no management right. The most popular product of H&H called “Darkie”‚ toothpaste used a stereotype cartoon of a black man with a smile white teeth. However‚ Colgate’s reputation suffered of the image using on this product because social and cultural behavior have changed and additionally‚ Colgate’s largest and international competitor Proctor & Gamble also used it to
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2. Zara’s product cycle was much better than its competitors. Zara was able to originate a design and have finished goods in stores in 4-5 weeks for entirely new designs. The industry model was 6 months for design and 3 months for manufacturing. Zara produces 11‚000 items a year as compared to 2‚000-4‚000 by competitors. 3. Zara’s quick product cycle created a sense of scarcity and a “buy now or miss it” mentality among customers. Zara shoppers visited the chain 17 times a year‚ compared with an
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Zara is a very big clothing chain from Spain. The chain was founded in 1975 by Mr. Ortega‚ and it now has more than 1.000 stores in approximately 63 countries – so it is a very big chain. However Zara has its biggest market in Spain‚ where they have 364 stores in total. They sell fashion clothes of a fairly good quality to reasonable prices – this also means that they have a broad target group‚ which we believe to be from kids to adults younger than 50‚ both men and women. Over the years Zara has
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Test #3 Study Guide – International Management Chapter 12 – Motivation across Cultures Motivation – A psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives Intrinsic – A determinant of motivation by which an individual experiences fulfillment through carrying out an activity itself and helping others Extrinsic – A determinant of motivation by which the external environment and result of the activity in the form of competition and compensation
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Merchandising Report Merchandising centres on the buying and selling of goods within a market place and a good merchandising system is essential to the success of any retail business. I intend to focus this merchandising report on Zara‚ a ladies fashion retailer and HMV‚ an entertainment megastore. These two companies have specific buying and merchandising strategies‚ which are tailored to the needs of their products. This report will explore the similarities and differences within each company
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Albert Sedaghatpour Individual Case Analysis-Zara 7/24/09 Introduction Zara is the flagship chain store of Inditex Group owned by Spanish tycoon Amancio Ortega. The group is located in Spain‚ where the first Zara store was opened. Zara has opposed the industry-wide trend towards turning fast fashion production to low-cost countries. Possibly its most atypical strategy is its policy of zero advertising; the firm opted to invest a portion of revenues in opening new stores instead. At the end of 2001
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ZARA: IT for Fast Fashion Önder BARLAS Executive MBA Student Boğaziçi University‚ Istanbul Abstract: In 2003 Zara faced a problem whether to upgrade the operating system they used for their point-of-sale (POS) to a new Windows based one‚ or to continue using the stable and old one. This report aims to analyze the problem by conducting a SWOT analysis and offering a solution path best suited on Zara’s strategic position in the clothing industry. 1. Brief Information about Inditex and Zara Inditex
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of Sciences in Business Administration major in Human Resource Development Management Zara Clothing Company Marketing Plan By Mr. Carl Jastine Eugenio Ms. Angelica May Ignacio Ms. Mary Christine Agojo Ms. Shenna Mae Reyes Mr. Eric Balaoro I. Executive Summary Zara is the largest retail company owned and run by Inditex‚ largest Spanish corporation and the world’s largest fashion group. The way Zara has runs its company is by following a vertical integrated operation that
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