Why zara might fail

Another menace of failure that lingers Zara is their inability todevelop a strong supply concatenation in the Americas. Outside Europe nevertheless.

Zara lacks the kernel of strong internal production and distribution installation. In add-on. Production costs may increase if the Euro becomes stronger against the Dollar. The Gap. Essay Sample. Copying is only available for logged-in users. If you need this sample for free, we can send it to you via email Send.

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Choose a Membership Plan I agree to wait a whole day. Sorry, but only registered users have full access. What do comparisons indicate about Inditex's relative operating economics? Its relative capital efficiency? List the factors leading to the demise of Gap. Understand how the application of technology to data collection and analysis allows Zara to spot trends and gain insight into the future preferences of customers. Identify the strategies, and the technologies used to implement.

Is there a way to define ownership in fashion industry? This paper discusses why fast fashion brands like ZARA take no responsibility for plagiarism and appropriated trends started by independent designers. Copyright law is designed to protect literary and artistic works was well as innovation such. 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. Another threat to Zara is direct competition. Also, Zara is not sure about which market to enter. This may be a possible barrier for Zara since the markets are diversified, have different tastes and requirements, the industry structure is different, and it may be difficult for Zara to impose its existing structure in foreign countries unless it understands the markets.

Zara has also maintained low advertising cost than its competitors and the corporate culture allows employees to work in teams is more horizontal than hierarchical. The Divisional Structure that Zara follows allows a lot of information sharing and suggestions to other divisions that might be located away from the stores.

Additionally, the inhabitants relied heavily on agriculture and fishing, the Galicians were considered as tailors to aristocrats and was home to thousands of apparel workshops. However, what Galicia lacked was strong local demand for apparel, strong base upstream in textiles, sophisticated local demand, technical institutes and universities to facilitate specialized training.

Even though Galicia has its limitations, the advantages clearly outweigh the drawbacks. Hence it was definitely a fertile place for apparel retailing. Feedback: Good points Question 4 How well does Zara's advantage travel globally? Selected Answer: Zara has several advantages when it expands its operation in global markets. Firstly, Zara has always promoted its products via its stores and it had its own centralized distribution center which will translate to low advertising and logistics costs when it enters new markets.

As opposed to its competitors who would invest heavily on advertising and organize a distribution system. Secondly, apparel retailing was witnessing increasing concentration which would benefit Zara when it entered new markets.

Thirdly, there was more homogeneity in fashion which supported Zara's brand of clothing since its target market is consumers receptive to fashion. Moreover Zara has an adequate system of knowing local trends and tastes which it would reflect in its designs. The strategy of opening one store for information gathering in the initial phase of entering new markets is one of it key strengths.