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INTEGRATING GLOBAL SUPPLY AND MARKETING CHAINS

• How well does Zara perform compared to its competitors?

• What are the sources of Zara’s competitive advantage?

• What are your top 3 recommendations to Inditex CEO Jose Maria Castellano regarding the internationalization of Zara?

Introduction

Inditex is one of the renowned owners of Zara and at the same time, it is one of the retail store located in Spain. Zara operates on the global chain and at the same time also focusing on the designing, marketing, and the financial issues in a subsequent manner. It has the particular level of the proper combinations of the sales and the marketing concepts, which helps in the international competition among the competitors. The organization is based on the international system as well as n the strategic business systems so that the vertical structure of the commodity can be adjusted and at the same time, they can be able to conduct with the other competitors.

Performance of Zara in comparison to its competitors

Sources of competitive advantage of Zara

Differentiation: This means to provide different brands as well as the customer service to acquire the proper market share. The company has different technical strategies as well as the information and the logistics systems with the help of the use of controlled mechanized system (Rugman and Girod, 2003). Zara's most of the operations are centered on the primary manufacturing opportunities in Spain. In this case, 50 percent of the items has been designed and manufactured based on different style patterns and the designs (Massa and Testa, 2009).

Manufacturing of the small lot: The designed supply chain is there to support the small production capabilities and proper shipments. It helps in the reduction of the waste, which has been formed by lots of wasted designs (West, Ford and Ibrahim, 2015).

Results from Spanish diamond

How different elements of business model of Zara "travel globally"

Relevance:

The value proposition of Zara achieves higher quality designs and the fashions, which depends on the average wealth capabilities and the necessities of the different countries. The fashion culture is also there in Zara and for this purpose, the target customers of Spain is around 80 percent, and the stores are properly designed and at the same time. All the things in the stores are accurately placed with the higher market availability and by this manner; all the targets of the local clients can be easily met (Fernie and Perry, 2011).

Reasons for Possible Failure of Zara

Zara might fail due to different reasons. Those are due to focusing on the different channels and at the same time, the organization is not able to match the speed with the other competitors in the international market. The organization might face differences in the case of proper positioning of the products and at the same time, it lacks the competitive powers and skills within them (Ganesan,1994).The organization needs to produce different ranges of products for all the countries to satisfy the needs of all the customers across the world. The country at the same time also needs to focus on the distribution as well as the production channels. The organization is not capable enough to change the form real estate into the new regions.

Best ways for growing Zara chain

There are certain different growing possibilities of Zara like it can be able to test different kinds of the design techniques and at the same time all the requirements which it will take into consideration is to focus on various factories and at the same time to obtain different materials from different sources across the world. It needs to involve the improved cost mix and at the same time need to bring the limited markdowns to make the production process much smoother and cheaper (Tokatli, 2008). The test designs also need to be adapted so that some criteria can be fulfilled like the international processes, delivery cycle processes and at the same time, the Asian sourcing could also be prepared for the base items. The faster and the foremost designs need to be made so that all the fulfillments can be done in a quicker manner (Rigby and Bilodeau, 2015).

There needs to be an average availability of the wealth, proper resources as well as the necessities to fulfill the job so that the real problems can be handled easily. The well behavior among the team members is necessary so that the proper planning can be made and the overall revenue is good for all the members of the organization (Ganesan, 1994). Branded manufacturers as well as the branded marketers, sell the products with their brand names and at the same time continuously specializing themselves in the production of the intermediaries as well as the proper management works and the services (Epstein and Buhovac, 2014). ). The regularity as well as the proper task needs to be carried to make the proper developmental processes easier and wealthier. This is done to achieve the different prospects as well as the different forms of integrities (Ganesan, 1994).

The different forms of the managements, as well as the resource formation, will help in dealing with various forms of social aspects and dealing with various forms of the cultural minds and the origins. The essential thing in the real life business is dealing with the different forms of the aspects and at the same time makes different types of public figures as well as the different needed images in the most critical as well as the critical way (Rigby and Bilodeau, 2015).

Recommendations

Conclusion

Reference List for further study on INTEGRATING GLOBAL SUPPLY AND MARKETING CHAINS

Danese, P., 2013. Supplier integration and company performance: A configurational view. Omega, 41(6), pp.1029-1041

De Brito, M.P., Carbone, V. and Blanquart, C.M.,(2008):Towards a sustainable fashion retail supply chain in Europe: Organisation and performance. International Journal of Production Economics, 114(2), pp.534-553

Lamberg, J.A. and Tikkanen, H., (2006). Changing sources of competitive advantage: cognition and path dependence in the Finnish retail industry 1945–1995. Industrial and Corporate Change, 15(5), pp.811-846

Macchion, L., Moretto, A., Caniato, F., Caridi, M., Danese, P. and Vinelli, A., (2015). Production and supply network strategies within the fashion industry.International Journal of Production Economics, 163, pp.173-188

Sorescu, A., Frambach, R.T., Singh, J., Rangaswamy, A. and Bridges, C., (2011). Innovations in retail business models. Journal of Retailing, 87, pp.S3-S16

Tokatli, N., (2008). Global sourcing: insights from the global clothing industry—the case of Zara, a fast fashion retailer. Journal of Economic Geography, 8(1), pp.21-38