CASE STUDY #12 marketing

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CASE STUDY #12 marketing

목차

Q1. As completely as possible, sketch the supply chain for Zara from raw materials to consumer purchase.

Q2. Discuss the concepts of horizontal and vertical conflict as they relate to Zara.

Q3. What type of vertical marketing system does Zara exhibit? List all the benefits that Zara receives by having adopted this system.

Q4. Does Zara incur disadvantages from its ‘fast-fashion’ distribution system? Are these disadvantages offset by the advantages?

Q5. How does Zara add value for the customer through major logistics functions?

본문내용

Q1. As completely as possible, sketch the supply chain for Zara from raw materials to consumer purchase.
Zara makes 40% of their fabric and the remaining 60% is outsourced in Spain. Designing is done by the creative reams at the headquarters. They react to the information fed from the store managers. First the design is sent to one of the local cooperatives for sewing and cutting. Then ironing is done in facilities by assembly line workers. Then the clothes are wrapped and sent to the warehouse. In the warehouse the machines sorts, packs, labels and gets them ready for shipment to Zara’s retail stores .If the Zara retail store is not within a 24 hour drive cargo jets deliver the goods or else they just drive. Zara then sells to the customers through the retail store where they receive feedback again and the cycle is reproduced.

Q2. Discuss the concepts of horizontal and vertical conflict as they relate to Zara.
Vertical conflict in Zara can happen at three levels. It can happen between suppliers of the fabric and the design team, between suppliers of fabric and production team and between the design team and production team. Since Zara is constantly changing their designs, patterns and colors the suppliers have a hard time adapting to the change creating conflict. Zara is all ways trying to have fast fashion therefore their demand for fabric is high. This can put pressure to the suppliers. When new designs are created the production teams have to keep up therefore

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