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zara - 3-1 Zara: Parentcompany:InditexCorporation

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Zara: Game-changing clothes giant Parent company: Inditex Corporation  The blend of technology-enabled strategy unlashed by Zara seems to  break all of the rules in the fashion industry The firm shuns advertising and rarely runs sales In fashion industry nearly every major player outsources manufacturing  to low-cost countries, but Zara is highly vertically integrated, keeping  huge swaths of its production process in-house 3-2
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To understand and appreciate : The counterintuitive and successful strategy of Zara The technology, which has made all of this possible 3-4
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Micky Drexler, the iconic CEO, helped turn Gap’s button-down  shirts and khakis into America’s business casual uniform Drexler’s team had spot-on tastes throughout the 1990s When sales declined in the early 2000s, Drexler tried to revitalize  the brand by filling the stores with teenage apparels This shift sent Gap’s mainstay customers to retailers that easily  copied the styles that Gap had made classic 3-5
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Gap’s same-store sales declined for twenty-nine months straight,  profits vanished Paul Pressler, the new CEO shut down hundreds of stores, but it  did not help due to bad bets on colors and styles The marketing model used by Gap to draw customers in via big- budget television promotion had collapsed In January 2007, Pressler resigned 3-6
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Conventional wisdom suggests that leveraging cheap contract  manufacturing in developing countries can keep the cost of goods low Contract manufacturing:  Involves outsourcing production to third-party firms Firms that use contract manufacturers don’t own the plants or directly employ the 
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