- Differentiate between three key concepts – supply chain, value chain, and intergrated value chain.
supply chain: the downstream portion of a value chain, the channel from suppliers to producers
value chain: the integrated channel that stretches from suppliers through the producer and on to the end users.
integrated value chain: integrates the two together
- What are the business practices used by Zara that have made it responsive to customer needs and successful financially?
They are always on top of all the trends and knowing just what their customers want. their sales reps walk around the store asking shoppers questions about the styles they like and don’t, input those answers into a handheld device which transmits hte information back to the design team so they have up to date info on what their customers like. zara is also able to turn around new designs in about 2 weeks so the styles are still in fashion while theyre being sold. they do this making 40% of their own fabric and makes 60% of the garments they sell. the website is also localized in different languages. the site is designed to draw customers into store; it is not an ecommerce site.