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Pages:
7 pages/≈1925 words
Sources:
10 Sources
Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 34.02
Topic:

Profit Margins for Zara, Gap, and H&M

Essay Instructions:

Individual Case Analysis: Zara: An Integrated Store and Online Model (A) -2020.
This case study is in the course module.
Grade: This assignment is 30% of your final grade.
Assignment: To prepare for the business challenge and team deliverables you will will complete an individual analysis of a case study focused on the retail industry. There are important strategies and applicable concepts in this case study that will help you and your teammates navigate through the business challenge.
Pages: 8 pages max, 12-point Times New Roman font - single-spaced. The page count excludes the cover page, reference page, and appendix.
Case Study Prep: In preparation for this assignment, read the questions below and then skim the case once to get an overview. Afterward, re-read the case more carefully for details so that you can answer the questions completely in detail.
The purpose of the case is to understand the key issues while eliminating any extraneous details. Like real business situations, the cases give you more information than you need. You need to understand what information is relevant for a given context.
Make sure you are not using any outside material to help you with this case. Use only the facts given in this case and the additionally reading Blurring the Lines between Physical and Digital Spaces: Business Model Innovation in Retailing by Milan Jocevski. Do not surf the web for outside answers, look at other sources, or share your work/collaborate with other students in the course. This is an independent assignment and as the honor code applies suspected similarity in work will be referred to the Academic Integrity Committee (AIC).
Failure to adhere to APA guidelines will result in an automatic 10-points deduction.
Some of these questions, like in real business situations do not have clear answers but require you to develop a position and argument that can be defended to defend your position. However, there are answers that are better reasoned than other answers.
Make sure that you can FACTUALLY defend your answers using facts from the case.
In marketing, we use quantitative proof if available in the case to make a case. Therefore, cite facts from the case to draw conclusions and recommendations. This means you're required to use APA in-text citation and referencing in your submission. Incorrect APA use or a Turn It In similarity score of 15% or higher will be flagged and reviewed for plagiarism by the Academic Integrity Committee (AIC).
Case Questions:
1)Compare the profit margins for Zara, Gap, and H&M. What can explain some of the differences?
2)Should Zara continue to aggregate smaller stores in an urban area into one flagship store (for example, in Bilbao, replacing four stores with one flagship store)? Why or why not?
3)Under what conditions should Zara fill online orders from stores rather than from online distribution centers (DCs)? That is, what criteria would you use to decide whether you fill an order from an online DC or from a store?
4)Should Zara replicate the integrated store and online DC model in other markets? Why or why not?
5)Would you advise Zara’s competitors to invest in similar RFID technology?
6)THIS QUESTION IS FOR MIM-DD STUDENTS ONLY:
In Change Management, Professor Anthony taught the strategy Force Field Analysis (FFA). Please answer question 2 and then apply (FFA).
Please use the link provided to make a FFA visual. You can choose any of the models provided. Once complete please PDF the file. You will add this as an appendix to your paper. This visual should be aligned with your thoughts in the above question: https://online(dot)visual-paradigm(dot)com/diagrams/features/force-field-analysis-template/ Links to an external site.

Essay Sample Content Preview:

Zara’s Store Case Analysis
Student’s Name
Institutional Affiliation
Zara’s Store Case Analysis
Question 1 Solution
Comparison/Brand Value

ZARA

H&M

GAP

Date of Creation

1985

1947

1969

Their Personality

ZARA provides retail apparel and accessories.

Hennes & Mauritz (H&M) creates and sells clothing for young women, adolescents, and children.

GAP retails men’s care products and apparel for children and women.

List of Goods Sold

Clothing
Fashion
Distribution
Footwear
Retail Accessories
E-commerce

Retail
Fashion Clothing

Clothing
Fashion
Distribution
Footwear
Consumer Goods
Retail Accessories
E-commerce
Sports

Evaluation ($)

117.7B

34.8B

8.9B

Income (est.)

€26.1b (Financial Year, 2018)

kr210.4b (Financial Year, 2018)

$ 15.855b (Financial Year, 2018)

Total Revenue

€14.8b (Financial Year, 2018)

kr110.9b (Financial Year, 2018)

$6.066b (Financial Year, 2018)

Comparing the turnover rates of each retailer’s stores, it is clear that H&M has a smaller inventory turnover than Zara and GAP. Notably, this implies that either the sales are vital for both entities or the stock is low. The company’s inventory turnover indicates that it is overstocking its products and has lackluster sales. The results show why quick-moving shops like Zara and Gap often beat their corporate competitors.
Question 2 Solution
Zara might replicate the combined shop and online distribution center concept in other countries because these stores can service many locations and help them stock clothing for outlets with insufficient storage space. Online DC and integration go hand in hand because businesses can rapidly find what they need and get a sense of what the market demands, allowing them to determine the best course of action. Because Zara’s goods are stored and distributed from the integrated shop, it can provide a more incredible selection of clothes, increasing their sales. When there is a shortage at one of the businesses, they can select items from warehouses or other stores and deliver them to that location. Besides, this strategy will allow retailers to obtain new items on time, saving the business money.
The fact that there are no shipping costs or trucks required to move the clothing from manufacturers or suppliers to retailers where there is a shortage suggests that Zara will save money. The Inditex fashion firm owns the Spanish fast fashion retailer Zara and has been in business since 1975. (Moreno, 2020). By linking their new DCs with their existing online and physical stores, they can manage their storage better and comprehend what consumers desire from their physical and online stores. Integrating the four stores into one flagship will be more beneficial for them, given the growth in sales, than managing the four individual stores. With the connection, Zara can quickly determine whether products are in high or low demand and what buyers want and do not want when stocking clothing for stores with little storage spa...
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