I am a little late for Week 8 study, but I am going to catch up in Week 9. This week I have been working on two case memos, Cleopatra for this class and another one for IT management class. I was supposed to finish the Cleopatra case memo last weekend, but the due date moved and I was too enjoyed analyzing the case to stop before the due date. So I ended up working on two case memos this week and haven’t spent enough time on Week 8 materials.
I just finished watching the two Camtasia videos on marketing channels and IMC. I’m so impressed with Zara. I did a case study on Zara early this quarter in the IT management class. Their business model is simple but so powerful.
The original business idea was very simple. Link customer demand to manufacturing, and link manufacturing to distribution. That is the idea we still live by.
Jose Maria Castellano Rios, Inditex CEO
With their ability to intertwine distribution, manufacturing, and customer demand along the supply chain, it is no surprise that Zara has become so successful. They innovated how to use the channel! While most fashion businesses try to increase revenue by better forecasting, Zara creates value through better management of their VDN. Unlike their competitors, Zara does not have to rely on accurate sales forecasts and try to predict what customers want months ahead. With retailing and manufacturing closely linked together and flexible factories with short lead times, Zara could continuously sense what customers want and just respond on the fly.
Reflection on week 8 materials to be added…
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