ZaraPreparationQuestions - 1. What makes Zara different...

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1. What makes Zara different from other specialty apparel retailers? First of all, Zara uses a different distribution than other specialty apparel retailers. It is centralized and they make shipments twice a week so that the clothes are in stores in 24 to 48hours. Zara uses its distribution facilities as a place to send the goods not a facility to store costly inventory. As said in the Case, Zara has low advertising cost compared to other specialty apparel retailers who spend millions of dollars in advertising every year. Zara also does not use outside production or design. It is vertically integrated meaning that the company can respond to the elasticity of the demand very fast because they do their own production and their own design. Therefore, they can also adapt very quickly to market demand without having to store great amounts of inventory. 2. Where are the competitive threats to Zara likely to come from? The most important competitor of Zara is H&M because it is a similar type of fashion
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This note was uploaded on 09/11/2011 for the course BUAD 311 taught by Professor Vaitsos during the Spring '07 term at USC.

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