Answer To: Why might Zara “fail”? How sustainable would you consider its competitive advantage as being...
Robert answered on Dec 22 2021
Case Analysis 1
Running Head: CASE ANALYSIS
Case Analysis
Case Analysis 2
Case Analysis
Answer: 1
In this competitive environment, there are many reasons that are responsible for the
failure of Zara. The basic reason of Zara failure was its huge expansion plan (Hill, 2000). On the
other hand, Zara’s homogeneous production line and strategy were also responsible for the
failure of Zara in international market. The failure occurred in this by differentiation in the
cultural, economic, societal and other several conditions of the countries (Freiberg & Freiberg,
2012).
Along with this, the difference in tastes, fondness and fashion across regions also play a
hazard of failure to Zara. In addition, Zara faces a lot of vulnerability to enter into international
markets (Coulter, 2012). At the same time, for the success Zara should deliver its garbs in-time,
at competitive prices, short-lead time and customized for local markets. Zara was unable to
develop a strong supply chain that was another threat of failure (Taylor, 2003).
In the same manner, competitive advantage of Zara is sustainable and has thrust for the
success of the company (Mavor, 2003). Zara adopts the key principle of competitive advantages
such as: low level of stock and supply of the product, an effective system of distribution,
reduction in the advertising cost and a high turnover of its product in all over the world.
On the other hand, Zara also rapidly acclimatize the market needs and also offer an
immediate response system to achieve competitive success. Zara also emphasizes at the climate
of need and opportunity of the success. Thus, all the above characteristics are the reason behind
it the more sustainable competitive advantages of the marketplace (Williamson, 2012).
Answer: 2
Case Analysis 3
From the given analysis of the case, it is observed that, Galicia listed in the third number
as a poorest region of Spain. Along with this, it should also be found that, it had different poor
communication links as well as very high rate of unemployment. In addition, the habitants
trusted intemperately on farming and fishing that were regarded as tailors to aristocrats. They
were also having home to make apparel workshops (Messonnier, 2010).
Along with this, it is also also interpreted that the demand level of Galicia lacked was
very a powerful. It is...