9.10.08

Zara seems to be the new example of a good business model (doesn’t mean I would shop there ;) )


Zara offers consumers trendy fashions when they want it. Zara keeps up with what consumer wants by having an extensive consumer feedback system in place. When you shop at Zara, your choices are tracked and Zara rather than purchasing in bulk of certain fashion styles, purchases what the consumer wants at a specific location. If one store seems to be selling a specific style then that store is stocked in that style while others may have more of a style. The supply chain for Zara works together well because they are able to place product in a store and if it doesn’t sell, remove it and place it at another in hopes of moving the product off the shelves there. This may lead to high brand loyalty because consumers get what they want at the time they want it. I also think this may turn away consumers because although they may have a specific shopping style, shopping may not always be predictable and when a consumer wants something at a specific time, Zara may not have it because they moved it to another store because it wasn’t as popular as other choices.

We also discussed Dells supply chain. Dell sells customization. A consumer may choose dell not because they stock products that are popular at the time but because they build computers as the consumers request comes along. You can customize a dell and then the computer/laptop is built for you that way Dell does not need to keep everything stocked and potentially lose money. Although sometimes because of it there may not have a piece of hardware and may have to offer you a better piece at no charge to not lose a customer. Dell may be slower than Zara because Zara has internalized its supply chain and manufactures all of its products rather than Dell that has to order parts each time there is an order.

The Future also known as RFID, radio-frequency IDs, are the tiny chips that send and receive info. Its a little creepy that they can tell when a product is picked up and moved from one location to another in a store but its their store so i guess don’t shop there if you don’t like it. Its a technology that tells the computer system that inventory is gone. Smart right! I think so too. It makes it easier to track product as it exits the warehouse, ships to the store, stays or moves from the store and when it must be replaced.

to be continued…

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