Strategic Management Project- Integration & Intensive Strategies Submitted to Dr. Ravi Raj Kumar Professor& Dean School of business- Alliance University Submitted By Group 5 Marketing-Jan 12-14 Batch Sec-B 1|Page Ackonwledgement Its been a great pleasure for me to work under people of immense subject matter expertise and its time for me to acknowledge all of them without whom this work would not have been fruitful. It is great pleasure and honour for us to owe gratitude to my
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Zara owns and manages numerous resources that can be categorized as tangible‚ intangible or organizational capabilities. The interactions between tangible and intangible resources help create organizational capabilities that provide value to the end consumer. Zara has a large variety of tangible resources due to its international expansion and vertical integration. Zara has 507 stores around the world with a total selling area of 488‚400 m² and 1‚050 million of Inditex ’s capital invested
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Zara – Solutions: Zara is a world famous Retail Chain based in Spain and is extremely successful in their supply chain. Questions: 1. What is Zara’s Business Model and its unique Supply Chain strategy? Zara’s business model can be broken down into three basic components: concept‚ capabilities‚ and value drivers. Concept is to maintain design‚ production‚ and distribution processes that will enable Zara to respond quickly to shifts in consumer demands. Capabilities: Zara maintains
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Vertical integration is the process of combining firms‚ usually under a single ownership‚ that are different parts of a larger production scale. This could be anything from two firms to all of the firms that make up the supply chain. Due to combining multiple smaller firms‚ this form of integration has an effect on the market power that the firm(s) has (Riordan‚ 2008). This differs to horizontal integration which is the combination of firms or expansion of a single firm at one particular point of
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Vertical Integration in the Swiss Watch Making Industry: A Case Study of Rolex Most firms exist to maximize profits. In order to maximize profits‚ firms must either increase revenue by increasing demand or reduce cost by exploiting economies of scale and reaching the minimum efficient scale. The motivation towards cost reduction has given rise to large aggregate producers‚ firms who mass produce to sell to other firms in the market. In this report we will refer to these aggregators as “market firms”
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used vertical integration‚ a system of related businesses in which a parent company owns its suppliers‚ to increase his businesses efficiency levels. Carnegie bought out the companies and suppliers that carried the raw materials and services he required for his business. He was able to control everything he needed‚ and make agreements with other companies to buy his steel. Using this method‚ he saved money and increased his profits. The Walt Disney World Corporation also uses vertical integration
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ZARA: Responsive‚ High-Speed‚ Affordable Fashion 1.What is Zara’s value proposition? How does it differ from its competitors? Zara’s value proposition is ‘low-cost but high fashion’ together with the opportunity of having a new piece of clothing considered as ‘unique’ -that won’t be in the shop for more than 2 or 3 weeks. On short‚ as well the title of this paper states: ‘Responsive‚ High speed‚ Affordable fashion’. Stores are managed as small business‚ vertical communication and supply chain
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1. What is Zara’s value Proposition? How does it differ from its Competitors? “Zara has pioneered leading-edge fashion clothes for budget minded young adults through a tightly integrated vertical structure that cuts delivery time between a garment’s design and retail delivery to under three weeks (against the industry norm of three to six months)” (Grant‚ 2010‚ p.212) According to Clayton Christensen in order to process you Value Proposition you must look at the following (Harvard Business
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returns in I.T Vertical integration of operations Fast response to changing environment Impacts between the elements: Increase in the business in lieu of the competition in the market may be influenced by offering a variety of products that are customized and differentiated on the basis of the customer needs. When customer demand is linked to production and that to manufacturing and distribution‚ repetitive operations may be avoided. Integration of operations on a vertical manner may reduce
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clothing company Zara is a good example of a well-designed supply chain system. Zara has been able to successfully keep information flow open‚ keep a production rhythm and maintain high leverage of corporate assets. This success has enabled to Zara to reduce the bullwhip effect (Ferdows‚ 2004). By maintaining much of its own production in-house‚ Zara maintains a tight supply chain relationship with increased information sharing and high levels of trust. This high level of vertical integration also provides
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