Part A
Identify global industry value chain in the fashion retail industry.
In what aspect, Zara is different from its competitors in value chain?
Zara is famous for being fast. It takes Zara 6 weeks from designing to retail whereas it takes 6 months for the traditional others. Is Zara also early mover? In other words, does Zara start making investment for each season earlier than its competitors, or not?
How is Zara’s uniqueness in value chain related to Zara’s entry timing decision (early vs late) and Zara’s speed decision (fast vs slow)?
In the end, does Zara have a competitive advantage due to speed decision or entry timing decision or both?
Part B
According to Zara image
(a) To interpret Zara’s competitive advantage, it is better to compare Zara with H&M, rather than GAP or Benetton because Zara and H&M is in the same strategic group.
(b) Zara has competitive advantages in terms of operating efficiency compared to H&M.
(c) Zara has competitive advantages in terms of working capital compared to H&M.
(d) Zara has competitive advantages in terms of fixed-asset capital compared to H&M.
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