Computers in Management Final Review

Computers in Management Final Review - Computer Final Zara...

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Computer Final Zara Case Gap is the number one pure play fashion company Inventory = death Zara is able to learn about customers by: Point of Sale – What is actually being bought Personal Digital Assistant – What customers want Zara produces 60% of Goods in house. They actually make 40% of fabric Can turn around a product 12x faster than Gap which causes customers to visit more often. They spend more on production but customers want to come into the store more often to see the new products. Zara uses vertical integration – when a single firm owns several layers in its value chain. Value chain – set of interdependent activities to bring a product/service to market. Inbound logistics, operations, outbound logistics, marketing and sales, service Vulnerabilities – Financial limitations (Euro-centric) and operation limitations (the fast product turn around can only work effectively on smaller scales). Notes from readings: -Most clothing retailers have several hundred products a year, Zara has 11,000 -Growth rate = opening one store a week -Parent company – Inditex -10 stores in the US -Speed of goods to market = strength -Success in the US relies on the duplication of its manufacturing and distribution system -Spend less on advertising -Production carried out in small supply to prevent oversupply -Level of uniqueness
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Technology and Competitive Advantage Basics of strategy and competitive advantage -Operational effectiveness – Performing the same tasks better than your rivals. -Strategic Positioning – Performing different tasks than your rivals, or performing the same tasks in a different way. -Characteristics of assets that may yield competitive advantage -Rareness – Is the asset in limited supply or difficult to acquire? -Value – Does the asset yield value to the firm/customers? -Imperfectly imitable – Is the asset impossible to imitate? -Non-substitutable – Is the asset without comparable substitutes? -Industry and Competitive Analysis (Five Forces) -Potential New Entrants -Power of Suppliers -Substitute products or services -Power of Buyers -Industry Competitors -Key resources for competitive advantage -Imitation-resistant Value Chain Organization -Brand -Scale economies -Alliances -Network effects -Data and Switching costs -Distribution Channels -Differentiation – product or service -Patents Notes from reading: -Sony’s slide from generics coming to market -Problem with Fiber optics -Glut = gross overcapacity -DWDM = Dense Wave Division Multiplex -Putting prisms in front of light to increase the carrying capacity of fiber -Technology does not equal competitive advantage -Tech can be matched in a month and a half
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Startups vs. Giants Netflix and the Video Rental Industry -Clustering like customers -Collaborative filtering = technology that monitors trends among customers and uses this to personalize an individual customer’s experience -Advantage of DATA -Software is not necessarily a source of competitive advantage -Can be copied, but more data is created over time for customer recommendations
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This note was uploaded on 04/07/2008 for the course MI 021 taught by Professor Gallaugher during the Spring '06 term at BC.

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Computers in Management Final Review - Computer Final Zara...

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