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Companies can effectively compete within an industry through innovative models. Zara is an example, and its competitors are such as Gap, Southwest airlines, Wal-Mart and Dell among others.
Model Innovationdisrupted market -Deliver styles while still hot-marketing to convince buyers -Reduce marketing cost and increase--Increase marketing cost layout cost. -Hasten shift to customer demand-clearing the stock
Ordering- orders are made on time and regulation made to ensure that the order is not late. Fulfillment-the order is fulfilled by the La Coruna team. Design and manufacturing- Design is made so as to meet the customers taste and ever changing desires.
Approaches and organization-consistent with the preference for speed and decentralized decision making. Application development and other IT activities were the responsibility of an Is department of approximately 50 people
In side the factories,, relatively simple applications were used to plan production. Most sophisticated ones were large computer controlled equipment that cut cloth into patterns.
Automated distribution centres e.g miles of automated conveyer belts facilitated the ongoing task of receiving bulk quantities of each garment from factories then recombining the garments into shipment for each store.
Personal digital assistants(PDAs) and POS systems. Allows redundancy and division of labor. Constantly upgrades PDAs to meet technological advancement. POS terminals remained unchanged since they are remarkably stable, effective and easy to roll out and maintain over time.
Zara leads in the profit margins and growth rate due to unique business model within the industry.