Unformatted text preview: could they do this if they were not vertically integrated? Higher manufactureing cost is part of an overall strategy-Zara’s management goes against common industry practice-offer high fashion for low price-high quality control -don’t advertise--outsource less than others vertically integrated so have their own chain, don’t work with others upstream strategy-commitment to fliexiblity heavy capital investmenst, delayed commintment to specific products quick respose downstream strategy: focus on boosting traffic, margins and turns to compensate for heavy capital investment and no adverstising -...
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- Fall '07
- Management, downstream interactions Cost, respose downstream strategy, Higher manufactureing cost