diagram for business model

Answer to the question from learning Task#2

Zara is a Zara is a successful multinational firm that retails and manufactures apparel. The company is a success due to its linking of the retailing process to the manufacturing process so as to reduce the situation in the apparel industry whereby it is difficult to forecast customers demand. The firm responds quickly to the target customers’ demand, most of whom are young and fashion-conscious city dwellers. The firm responds quickly due to the fact that the customers’ tastes are hard to predict and change very fast. By so doing the company outsmarts its competitors in the industry such as Gap. Zara, through its innovation creates and captures a new market thereby displacing new technology.

Answer to the question after completing Learning Task #9

Task #9-The core competencies that Zara has built up to allow them to effectively execute the behavior drivers are:

· Forty-six percent of the groups sales were inside Spain in 2003

· 60% of the sales was to women

· 20% of the sales was to men

· 20% of the sales was to children

· In 2002, inditex posted a net income of $502 million on revenues of $4, 544.

In its operations, as the company’s goal is, it quickly and accurately responds to shifting consumer demands through its three cyclical process of order fulfillment, design and manufacturing. Ordering process is the most regular, precisely defined and standardized around the world.