The major success factor in ZARA is as a result of its different market positioning as opposed to its competitors. ZARA has also employed an exceptional business model. This business model is one of the most thriving in the world. ZARA is positioning is not only more fashionable in comparison to its competitors but unexpectedly utilizes a comparatively low price regime. ZARA produces approximately 50% its entire merchandise in-house. Other than employing its factory’s capacities to capitalize on their output, ZARA saves some of its factories capacity intentionally.
As opposed to taking advantage of the merits of economies of scale, the company manufactures and distributes its merchandise in small batches. ZARA does not rely on peripheral service providers. The company manages its own designing, distribution and logistical operations. This leads to its fundamental success factors namely; short lead time, decentralization of the decision making process, speedy conceptualization of new designs and speedy response to dynamic changes in customer preferences, leading to more fashionable styles and limited quantities (Azuma, 2006).
Zara has employed information technology to speed up the whole value chain process. ZARA has reaped several benefits through the use of information technology through its current POS. These advantages include the following points.
However, there are several disadvantages in the utilization of POS at ZARA. These disadvantages consist of:
Zara must consider upgrading the Point-of-Sale (POS) system that is currently DOS based to contemporary software such as the Intuit-HP Retail Solution. This solution is proven in the industry as a more sophisticated and durable than the system employed at ZARA. This contemporary software would grant ZARA with a strong solution in tacking its clientele, inventory management, and additional business insights (Nezu, 2001). In the event that, the current POS system is upgraded, it would be sustained briefly to ensure that the upgraded system runs smoothly. This should be done before completely shutting down the current POS system permanently.
What Could Be The Negative Consequence For Wal-Mart Of Constantly Making Its Suppliers Reduce Their Price?
The most significant negative consequence for Wal-Mart’s strategies of constantly forcing the suppliers reduce their prices is that it leads to price wars among the suppliers. Price wars usually generate economically destructive and psychologically devastating situations that negatively impact the industry’s profitability. Constant price cutting forces customers to persistently expect lower prices from the supplier. Thus, the customers who may be more patient would defer their procurements until the supplier offers another price cut. Secondly, a price-cutting supplier develops repute for being cheap, and this repute may cast distrust on the image and quality of related products under its umbrella brand as well as on the quality of upcoming products. Thirdly, price reductions bear implications for other market players, whose interests may be upset by the lower prices (Zellner, 2005).
Is This Sustainable?
Wal-Mart ought to realize that the pricing does not offer a sustainable competitive advantage. It is proven that prices may change almost instantaneously. Competitors in the market can also change their prices as fast as Wal-Mart possibly can. In the event that a company finds an optimal price, the competitors will replicate it immediately, and any competitive advantage that the company may have accomplished with pricing becomes unsustainable. This means that, if the company adopts low price strategy, then the business should continually focus on controlling and lowering costs. The consequences thereof would be that the business attracts price buyers. Such customers are fundamentally disloyal, since they are seeking the lowest price.
Wal-Mart’s constant insistence for lower prices from its suppliers caused Kraft Foods, one of its suppliers to close down 39 plants, lay off 13,500 employees, and to get rid of 25% of its products. The reason being that Kraft was incapable of competing with its competitors and alleged the costs of production had escalated due to costs of raw materials and rising costs of energy (Azuma, 2006).
Do You Think That In Europe Such a Strategy Would Be Successful?
Wal-Mart’s strategy of constantly making its suppliers reduce their price may face great resistance in Europe. This was evident in its entry into Germany. The company faced complexities in dealing with European suppliers. This is because Wal-Mart did not have the requisite bargaining power to procure goods from European suppliers at the low costs it anticipated. Most European countries have restricted store hours, and tough price regulations that prohibit retailers such as Wal-Mart to sell below stipulated costs. European countries also have rigorous zoning requirements that safeguard their traditional retailers. Labor unions in the European countries are more powerful than their counterparts in the US. Wal-Mart rivals in Europe have developed dealings with the labor unions and suppliers. This means that, its competitors in Europe have already implemented pre-emptive action as well as the requisite infrastructure to forestall Wal-Mart from being a significant competitor in Europe (Zellner, 2005).
Azuma, N. (2006). Fashion in the globalized world & the role of virtual networks in intrinsic fashion design. Fashion Marketing & Management Journal, 7 (2), 413-418.
Nezu, R. (2005). E-Commerce: A Revolution with Power. World Development, 29 (1), 25-32.
Zellner, W. (2005). Is Wal-Mart Too Powerful? Business Week, 3852, 100.
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
There is a very low likelihood that you won’t like the paper.
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more