INFO0331
In what ways is the Zara model counterintuitive? In what ways has Zara's model made the firm a better performer than Gap and other competitors?
There are several ingenious steps taken by Zara that proves both profitable and unprecedented. Zara has used technology to revolutionize their business, from buying the unprocessed cloth to determining which color die to use and what to make with that cloth. The technology process continues on the manufacturing lines and all the way to the final sale. But it does not stop there, it goes beyond the point of sale to question the reasons why a purchase was not made after a client expressed an interest in an item. The point of sale system provides real time data which is given immediate attention. PDAs are actively gathering information which is constantly been taken into consideration. The design strategy is another intuitive step. They do not follow custom catwalk fashion shows, instead they design based on customer demand. Manufacturing and logistics is a key contributor to their highly acclaimed success. The ability to have a product ready and on the shelves in ten days vice the competitor’s time of approximately three to nine month is where the strength of flipping their dollar lies and is accomplished mainly through vertical integration and technology orchestrated coordination of supplies. Deliver to replenish and deliver new stock is an expedited process, in some cases deliver is made overnight. Items placed on the shelves are readily picked up and nothing is ever marked down in a sale. Zara identify and manufacture the clothes customers want, get those products to market quickly, and eliminate costs related to advertising, inventory missteps, and markdowns
2. What do you believe are the most significant long-term threats to Netflix? How is Netflix trying to address these threats? What obstacles does the firm face in dealing with these threats?
Netflix has created a product that the customers want and are
There are several ingenious steps taken by Zara that proves both profitable and unprecedented. Zara has used technology to revolutionize their business, from buying the unprocessed cloth to determining which color die to use and what to make with that cloth. The technology process continues on the manufacturing lines and all the way to the final sale. But it does not stop there, it goes beyond the point of sale to question the reasons why a purchase was not made after a client expressed an interest in an item. The point of sale system provides real time data which is given immediate attention. PDAs are actively gathering information which is constantly been taken into consideration. The design strategy is another intuitive step. They do not follow custom catwalk fashion shows, instead they design based on customer demand. Manufacturing and logistics is a key contributor to their highly acclaimed success. The ability to have a product ready and on the shelves in ten days vice the competitor’s time of approximately three to nine month is where the strength of flipping their dollar lies and is accomplished mainly through vertical integration and technology orchestrated coordination of supplies. Deliver to replenish and deliver new stock is an expedited process, in some cases deliver is made overnight. Items placed on the shelves are readily picked up and nothing is ever marked down in a sale. Zara identify and manufacture the clothes customers want, get those products to market quickly, and eliminate costs related to advertising, inventory missteps, and markdowns
2. What do you believe are the most significant long-term threats to Netflix? How is Netflix trying to address these threats? What obstacles does the firm face in dealing with these threats?
Netflix has created a product that the customers want and are