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Week 2 Case Study - Sbe 420

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Submitted By weliving84
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Case Study 2
SBE-330
Week 2

1. Zara is a late but successful entrant to the global textile market. How did it search for – and create – opportunities to give it a niche? Is the Zara model sustainable? What would you do to preserve their edge over the next 5–10 years, given that many other players are now looking to follow their example? If you don’t think it can survive, give your reasons for why you think the model is unsustainable and will fail.

Zara saw an opportunity in being known for its design and exploiting non-price trends in the industry such as with high regards on focusing on design (over 10,000 different designs sold every year). They’ve used their ability to outsource their textile abilities to focus more closely on design. I would remain the pioneer and used what worked throughout the years for imitator as well as what worked for the company and continue to move forward.

2. You have been hired as a consultant to a small clothing manufacturer who wants to emulate the success of Zara and Benetton. She wants advice on an innovation strategy which takes the key lessons from these successful firms. What would you offer?

I would use the incremental innovation/ do it better approach by groupthink which focuses on a bit of reframing. Zara focus was on non-price factors that people also take into consideration while looking for a brand. Zara’s approach was design having produced over 10,000 designs throughout a single year will give a company at least 5 highly anticipated designs and building a huge client base. All of this probably would be available hadn’t Amancio Ortega Gaona decided to create and have parented his textile company which parented his brand “Zara”.

I would offer to her to take a looking at production a little more and find out how others are staying competitive. Exploit my means for production and find a way to create

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