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| Topic: |
Business
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| Number of pages / Number of words: |
10 / 2556 |
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These factories apply just-in-time production (JIT). Again, this gave Zara further competitive advantage, in terms of both cost and control.
Zaraa?â„¢s business model makes it more profitable then any other retailer. We already know from marketing that the retailer gets almost half the price of the commodity sold...
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So by playing both the role of the manufacturer and the role of the retailer, Zara is definitely much more profitable than the average retailer with similar posted prices.
3) Can you graph the linkages among Zaraa?™s choices about how to compete, particularly ones connected to its quick a?“response capability and the ways in which they create competitive advantage? What does the exercise suggest about such capabilities as bases for competitive advantage?
Zara does not compete on price...
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