Vertical Integration vs Outsourcing of Zara Written by Mohd Rahman October 04, 2014 “The original business idea was very simple. Link customer demand to manufacturing, and link manufacturing to distribution. That is the idea we still live by” -- Jose Maria Castellano Rios, Inditex CEO. 1 Introduction to Zara Zara is an icon in the fashion world and largest international fashion designing and manufacturing company. Zara is the flagship chain store of Inditex Group owned by Spanish
Words: 1736 - Pages: 7
Table of Contents Introduction 3 Answer 1: Supply Network Prospective 4 Failure to integrate the facilities 5 Vertical integration 5 Horizontal Integration: Single Company Strategy 6 Benefits: 7 Product range 7 Lack of customer consciousness and commitment to service 7 Poor internal and external communications 8 Answer 2: Customer service 9 The components of customer service 9 Answer 3: Inventory Management 11 The poor solution – the economic order quantity (EOQ) ‘fix’ 12 ABC analysis
Words: 5458 - Pages: 22
Managing a Holistic Marketing Organization GENERAL CONCEPT QUESTIONS Multiple Choice 1. ________ is the appointment of teams to manage customer-value–building processes and break down walls between departments. a. Reengineering b. Outsourcing c. Benchmarking d. Supplier partnering e. Customer Partnering Answer: a Page: 696 Level of difficulty: Easy 2. ________ is the greater willingness to buy more goods and services
Words: 3952 - Pages: 16
three-fourths of total world food sales have increased in response to consumers diversifying their diets or demanding higher-quality and labor-saving food products (Regmi and Gehlhar, 2005). More and more, consumers are asking for convenience, and the food system is responding. The relatively higher cost of a ready-to-serve bag of salad is preferable to a head of lettuce that must be trimmed and prepared. Demand for foreign brands and consumer-ready products, in particular, are expanding as well. Food producers
Words: 1874 - Pages: 8
Vertical marketing This relatively recent development integrates the channel with the original supplier - producer, wholesalers and retailers working in one unified system. This may arise becauseone member of the chain owns the other elements (often called `corporate systemsintegration'); a supplier owning its own retail outlets, this being 'forward' integration. It is perhaps more likely that a retailer will own its own suppliers, this being 'backward'integration. (For example, MFI, the furniture
Words: 1471 - Pages: 6
raw materials to consumer purchase. supplier ☞ manufacturer ☞ wholesaler ☞ retailer ☞ consumer 2.Discuss the concepts of horizontal and vertical conflict as they relate to Zara. Horizontal conflict is a conflict occurs among firms at the same level of the channel. Zara’s distribution network reduces conflict among retailers and wholesalers in some extent. Vertical conflict is a conflict between different levels of the same channel. Zara’s business model makes that it’s impossible for wholesales and
Words: 369 - Pages: 2
BUAD 307 Key Terms (from your textbook) Chapters 10 to 18 Please note that this is not “new” or “different” information; these terms are the exact same ones that are highlighted in the margins of your textbook chapters. Many of your classmates found that having the vocabulary in this format is helpful while studying, which is why I have posted this list. CHAPTER 10 TERMS associated services | (also called augmented product) The nonphysical attributes of the product including product
Words: 7525 - Pages: 31
digital music and video devices. To maintain their status in a highly competitive industry, Apple must not lose focus on the cornerstones of the company. They must continue building strong relationships, encourage innovation, and support strategic marketing. Brand management is also the key as they manage diverse products that have put them into new and extremely fast paced, ever changing markets. Business Intelligence Apple success in consumer electronics is a direct result of their business intelligence
Words: 1941 - Pages: 8
Contents About the Authors Preface to the Second Edition Preface to the First Edition Acknowledgements Brief Contents 1. Introduction to Sales and Distribution Management Introduction 1 Evolution of Sales Management 1 What is Sales Management? 2 Nature and Importance of Sales Management 2 Relationship Selling 3 Varying Sales Responsibilities/Sales Positions 4 Importance of Personal Selling and Sales Management 4 Role and Skills of Modern Sales Managers 4 Skills of a Sales Manager 6 Types of Sales
Words: 3416 - Pages: 14
Marketing Channels and Supply Chain Management Chapter Objectives • Explain why companies use distribution channels and discuss the functions these channels perform. • Discuss how channel members interact and how they organize to perform the work of the channel. • Identify the major channel alternatives open to a company. • Explain how companies select, motivate, and evaluate channel members. • Discuss the nature and importance of marketing logistics and integrated supply chain management
Words: 6245 - Pages: 25
