...ZARA The Zara boutique-clothing store on Calle Real in the northern Spanish city of La Coruna is buzzing. Customers have made the journey here on a rainy Saturday morning to see what new exciting styles are available this week. The red tank tops and black blazers seem to be a hit, but customers also really like the beige and bright purple ones too. Faces with this problem most fashion companies would normally have to spend months retooling and restocking their range. Not Zara, however. Each store manager is able to spot these changes in trends and then type them into their handheld computer on Saturday in the safe knowledge that they will arrive on Monday or Tuesday the next week. There is a very strong link between store managers and the central design team based at Zara’s head office in La Coruna in northern Spain. Each store is electronically linked back to head office so that they can view and assess sales on a real-time basis. This allows the company to make sure that they can adapt quickly to customer wants and desires. One example of this was a new khaki skirt that the company initially just stocked in Spain to see how it would sell. In the Coruna store it was sold out after only having been on the shelves for a couple of hours. After speaking to Barcelona, it was apparent that sales were brisk there too. It was then decided that the skirt should be tested out elsewhere, so overnight Zara sent out 7,800 skirts to more than 1,300 stores worldwide. The results were clear...
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...ZARA The Zara boutique-clothing store on Calle Real in the northern Spanish city of La Coruna is buzzing. Customers have made the journey here on a rainy Saturday morning to see what new exciting styles are available this week. The red tank tops and black blazers seem to be a hit, but customers also really like the beige and bright purple ones too. Faces with this problem most fashion companies would normally have to spend months retooling and restocking their range. Not Zara, however. Each store manager is able to spot these changes in trends and then type them into their handheld computer on Saturday in the safe knowledge that they will arrive on Monday or Tuesday the next week. There is a very strong link between store managers and the central design team based at Zara’s head office in La Coruna in northern Spain. Each store is electronically linked back to head office so that they can view and assess sales on a real-time basis. This allows the company to make sure that they can adapt quickly to customer wants and desires. One example of this was a new khaki skirt that the company initially just stocked in Spain to see how it would sell. In the Coruna store it was sold out after only having been on the shelves for a couple of hours. After speaking to Barcelona, it was apparent that sales were brisk there too. It was then decided that the skirt should be tested out elsewhere, so overnight Zara sent out 7,800 skirts to more than 1,300 stores worldwide. The results were clear...
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...NTERNATIONAL MARKETING ZARA: INDIVIDUAL ASSIGNMENT FACULTY OF ECONOMICS UNIVERSITY OF LJUBLJANA 1. What makes Zara different from other specialty apparel retailers? What are the main differences in the business models of Zara and H&M? One of the most important competitive advantages that Zara have is the rotation in the stores, Zara is constantly looking forward increase the rotation of products and the leadership in costs. Why is rotation so important and why this became a competitive advantage? The number of visits form customers to the shops if this industry used to be 3 visits per year but in the case of Zara are 15 visits per year. If your customers visit your shop more often there are more possibilities of increased the sales per customer. Zara is constantly stimulating the customers changing the stock 13 times per year. Not all the bands can change the stock so often because is really expensive. Zara is leadership in costos strategy, this company has a really efficient system of distribution. This brand also have some strategic shops around the world and from there they supply all the comercial stores. The business models of Zara and H & M are very different, one of the main differences between this models is the outsourcing of their activities. Zara produce more than the 40% of the production in Europe and H & M does not have own factories and this company produce more less than the 80% in Asia. This point is very importante if we are...
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...Fashion Industry Analysis From the Perspective of Business Model Dynamics Author: Lisa Gockeln University of Twente P.O. Box 217, 7500AE Enschede The Netherlands ABSTRACT The fashion industry is a dynamic and volatile place, continuously exposed to macro-environmental factors that trigger fashion business models to change. The fast fashion model is currently at the forefront of the apparel market casting questions on whether its underlying philosophy is about to change as well. Therefore, the purpose of this study is to identify external drivers that might lead to such dynamic changes in the fast fashion model. Moreover, it will be investigated whether these may allude to a possible convergence to the newly emerged slow fashion model which is currently trying to penetrate the fashion market. The international retailer Zara has served as fast fashion representative for this analysis and has been examined for business model adjustments, which might have been triggered by macroenvironmental factors. It was found that especially social, environmental and technological factors have influenced developments in the fast fashion model and that it has indeed adopted slow fashion principles in some of its building blocks to respond to such emerging trends. The future of the fashion industry appears to be tailored by such externalities, continuously reshaping the fast fashion model to eventually arrive at a version that brings a long-lasting competitive edge. However...
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...Journal of Business Strategy Business model innovation: coffee triumphs for Nespresso Kurt Matzler Franz Bailom Stephan Friedrich von den Eichen Thomas Kohler Article information: To cite this document: Kurt Matzler Franz Bailom Stephan Friedrich von den Eichen Thomas Kohler, (2013),"Business model innovation: coffee triumphs for Nespresso", Journal of Business Strategy, Vol. 34 Iss 2 pp. 30 - 37 Permanent link to this document: http://dx.doi.org/10.1108/02756661311310431 Downloaded on: 16 June 2015, At: 05:07 (PT) References: this document contains references to 19 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 25789 times since 2013* Users who downloaded this article also downloaded: Gabriela Alvarez, Colin Pilbeam, Richard Wilding, (2010),"Nestlé Nespresso AAA sustainable quality program: an investigation into the governance dynamics in a multi-stakeholder supply chain network", Supply Chain Management: An International Journal, Vol. 15 Iss 2 pp. 165-182 http://dx.doi.org/10.1108/13598541011028769 Claudio Vignali, (2001),"McDonald’s: “think global, act local” – the marketing mix", British Food Journal, Vol. 103 Iss 2 pp. 97-111 http:// dx.doi.org/10.1108/00070700110383154 Mark D. Uncles, Grahame R. Dowling, Kathy Hammond, (2003),"Customer loyalty and customer loyalty programs", Journal of Consumer Marketing, Vol. 20 Iss 4 pp. 294-316 http://dx.doi.org/10.1108/07363760310483676 Access...
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...Business as Usual is Not an Option Supply Chains and Sourcing after Rana Plaza Sarah Labowitz and Dorothée Baumann-Pauly April 2014 About the Center for Business and Human Rights at New York University Stern School of Business “At NYU Stern, we develop people and ideas that transform the challenges of the 21st century into opportunities to create value for business and society. Our Center for Business and Human Rights is the embodiment of that mission. By creating a safe haven for open dialogue and convening relevant voices for discussion around practical solutions to some of the world’s most pressing problems, the Center, and by extension this report, demonstrate that profit and principle can co-exist. ” –Peter Henry, Dean NYU Stern School of Business Dean Henry launched the Center for Business and Human Rights in March 2013 with a strong belief in the power of business to create positive change in society. In that spirit, the Center’s mission is to challenge and empower businesses to make practical progress on human rights in their own operations. It is the first center to focus on human rights as an integral part of a business school. We start from the premise that business can and does work for the good of society. We support the goal of business to create value while emphasizing high standards for human rights performance. Each year, we take on a major project around a set of human rights challenges in a sector that is of foremost concern for companies, consumers...
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...Master in International Business, Intake 7 London Corporate Web Communications http://www.ryanair.com Martin Sentis 11 Martin Sentis MIB 7 – Group B Table of content INTRODUCTION ................................................................................................................................. 3 BUSINESS OBJECTIVES AND BUSINESS MODELS ............................................................................... 3 Presence ........................................................................................................................................ 3 Pricing ........................................................................................................................................... 3 Revenue......................................................................................................................................... 3 Exchange type ............................................................................................................................... 4 How does the Internet add value? ................................................................................................ 4 Rappa’s business model ................................................................................................................ 4 AUDIENCE PROFILE ........................................................................................................................... 5 WEB EVALUATION......................................
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...owners before presenting adequate options to Wal-Mart´s executives who will decide whether or not to consider Baja-Land’s proposals. You have been assigned to this project by the CEO of Baja-Land. Your first task would be to analyze Wal-Mart’s recent growth in Latin America. Your boss has the impression that Wal-Mart’s growth in the region has decreased substantially in the last years. So you need to determine the importance of Latin American markets for this giant multinational and anticipate potential company´s needs for land reserves in the region. You also are asked to consider other significant factors of Wal-Mart’s business model mainly types of business facilities, relationships with suppliers, and tactics for expansion into new geographic markets. Your job is to evaluate potential gains and risks for Baja-Land to get involved in this business opportunity. Report your findings and conclusions. Report Requirements – Start by reading Case 13 in your text book (pp. 420-436). Look for additional information as needed to solve the...
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...excellence in the pharmaceutical industry Delivering superior value to your customers in challenging times Stephan Danner, Aleksandar Ruzicic, Patrick Biecheler Study Commercial excellence in the pharmaceutical industry Delivering superior value to your customers in challenging times 2 | Study Contents Letter from the authors Executive summary 1. At a glance: Turbulent times, here to stay? 2. Taking the first steps towards commercial excellence 3. Sales excellence: Still a worthwhile investment 4. The nuts and bolts of customer excellence a) The importance of customer relationship management (CRM) b) Towards a customer-centric approach c) The promotional mix as a stepping-stone to customer excellence 5. New business models: Making the necessary changes 6. Mapping out the road to commercial excellence 7. Sources 8. Who to contact about commercial excellence 3 4 6 10 14 18 19 22 26 30 38 41 42 3 | Commercial excellence in the pharmaceutical industry Letter from the authors For a while now, pharmaceutical companies have been faced with a multitude of difficult challenges. Financial pressures, regulatory changes and increasingly active stakeholders have put the industry’s sales growth and profitability to an ongoing and demanding test. In the past, many companies reacted to these obstacles by simply restructuring and downsizing their sales forces. Yet many onlookers now consider this approach to be outdated. If companies want to succeed – and generate...
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...is undoubtedly the future of the video rental industry. Netflix has already taken a good lead in it but must have fresh ideas to keep its advantage in the industry. Beating its competitors in the domestic market is important, however, Netflix should jump out of its own circle into a new market to gain the first mover advantage. Looking at the global market, China is a good choice for Netflix’s next station. Using the Porter’s Five Forces model, Netflix can examine its advantages and disadvantages see whether entering China is good choice: * Bargaining power of customers China has a growing economy with a large group of new middle-class, who are able and willing to consume on entertainment. Nowadays, Chinese usually watch films on free websites with a low picture quality and slow Internet speed. While the number of people watching films are increasing, the picture quality is becoming more important for the viewing experience. Providing a fast, flexible and high-quality service, Netflix can persuade many customers into its subscription model. * Bargaining power of suppliers: China’s film and TV show makers have been facing a major problem: plagiarizing (including unpaid online watching), which substantially decreases their profits. They are finding a pathway to introduce their product to the customers. The advantages of plagiarizing products are the cheap prices and convenience, which Netflix can also provide. Netflix should cooperate with Chinese filmmakers to gain sources...
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...acquisition growth strategy allows boost to grow faster than normal.in addition it’s a lot easier to finance by the bank. The franchisee strategy entails a few dangers associated with the model. Having to deal with fierce market competition from established brands and their popularity, managing seasonal inputs and acquiring a failing franchisee may drag the organisation down. This model also helps leveraging off synergy, from Salsa’s fresh mix grill. This subsidiary of Boost juice has complementary products to support its healthy image. Undoubtedly, the future strategic challenges must tackle problems like changing environments, conjuring a differentiation strategy and competition will always be a challenge coupled with sustainability struggle during off season. The biggest aspects that boost prides itself in its social responsibility that Boost Juice Bars have taken on is, the commitment to the health and wellbeing of its customers. Providing fresh produce and low calorie alternatives. Also its cups are made of bio degradable materials, reducing recyclable waste. Boost’s menu is a host to a variety of fruit drinks. It has to maintain variety as it faces strong competition from substitutes like supermarket juices, premium gourmet juices etc. The core question around which any business revolves, what is the potential for earning. For a potential franchisee it’s essential that it has a pre-established brand name in the market. It is also vital that how much training and...
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...Walmart Organizational Management Name Institution Affiliation Organizational Context Wal-Mart Stores Inc. or Walmart is a multinational retail organization that has numerous chains of large discount warehouse and general stores. The company was formed in 1962 by Sam Walton as a family-owned business. It was incorporated in 1969 and traded on the Stock Exchange of New York publicly in 1972. Since then this organization has grown strength to strength winning various accolades. In 1988, it was ranked as the most profitable retail business in America outselling competitors such as K-Mart and Sears in the retail business (Fishman, 2006). It was founded on Sam Walton’s quest for providing goods and services at relatively low or discounted prices. The Walmart principles have been hinged on cost-cutting while at the same retailing goods at consumer-friendly prices. The organization too, has been hailed for its global standard efficiency and business innovations. It was one of the first corporations that integrated use of computers in its operations in all its branches. The mission statement reflects on the founder’s business model of passing savings to his clientele and amassing profits through volume sales. This principle has made consumers feel more welcome and their needs taken care of over the years. The cost-cutting initiatives embraced by the company operations have been as a result of this old age philosophy Walmart has spread its wings world over opening up over 8...
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...analytical An analytical framework for evaluating e-commerce business models and strategies Chung-Shing Lee The author Chung-Shing Lee is Director of Electronic Commerce Resource Center and an Assistant Professor of Information Systems and Technology Management in the School of Business at Pacific Lutheran University, Tacoma, Washington, USA. Keywords Internet, Economy, Innovation, Strategy Abstract Electronic commerce or business is more than just another way to sustain or enhance existing business practices. Rather, e-commerce is a paradigm shift. It is a ``disruptive’’ innovation that is radically changing the traditional way of doing business. The industry is moving so fast because it operates under totally different principles and work rules in the digital economy. A general rule in e-commerce is that there is no simple prescription and almost no such thing as an established business or revenue model for companies even within the same industry. Under such conditions, an analytical framework is needed to assist e-commerce planners and strategic managers in assessing the critical success factors when formulating e-commerce business models and strategies. This research develops an analytical framework based on the theories of transaction costs and switching costs. Both demand-side and supply-side economies of scale and scope are also applied to the development of this framework. In addition, e-commerce revenue models and strategies are also discussed. Based on the analytical...
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...0BILL%20-%20BUSINESS%20AT%20THE%20SPEED%20OF%20THOUGHT.TXT BUSINESS AT THE SPEED OF THOUGHT by bill Gates ALSO By BILL GATES The Road Ahead BUSINESS AT THE SPEED OF THOUGHT: USING A DIGITAL NERVOUS SYSTEM BILL GATES WITH COLLINs HEMINGWAY 0 VMNER BOOKS A Time Warner Company To my wife, Melinda, and my daughter, Jennifer Many of the product names referred to herein are trademarks or registered trademarks of their respective owners. Copyright (D 1999 by William H. Gates, III All rights reserved. Warner Books, Inc, 1271 Avenue of the Americas, New York, NY 10020 Visit our Web site at www.warnerbooks.com 0 A Time Warner Company Printed in the United States of America First Printing: March 1999 10 9 8 7 6 5 4 3 2 1 ISBN: 0-446-52568-5 LC: 99-60040 Text design by Stanley S. Drate lFolio Graphics Co Inc Except as file:///C|/Documents%20and%20Settings/Admini...SINESS%20AT%20THE%20SPEED%20OF%20THOUGHT.TXT (1 of 392)12/28/2005 5:28:51 PM file:///C|/Documents%20and%20Settings/Administrator/Deskto...0BILL%20-%20BUSINESS%20AT%20THE%20SPEED%20OF%20THOUGHT.TXT indicated, artwork is by Gary Carter, Mary Feil-jacobs, Kevin Feldhausen, Michael Moore, and Steve Winard. ACKNOWLEDGMENTS I first want to thank my collaborator, Collins Hemingway, for his help in synthesizing and developing the material in this book and for his overall management of this project. I want to thank four CEOs who read a late draft of the manuscript and offered valuable thoughts on how to make it more meaningful for business leaders: Paul O'Neill, Alcoa;...
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...l in Zimbabwe Understanding the “new normal” in Zimbabwe The term ‘new normal’ is a term coined by Mohamed El-Erian, co-chief investment officer of Pimco, a California investment firm to refer to the situation the world found itself in after the Global Financial Crisis (GFC) of 2008-2010. From a global perspective, this phenomenon has led to mixed fortunes on the economies of different countries. Characteristic of the ‘new normal’ is the remarkable gaining of economic influence of the East due to the growing shift in global economic activity from West to East. Emerging Markets (Ems) proved to be a force to reckon with due to the increased flow of capital between the (Ems) themselves and to industrial countries as well as due to the increase in their stake or share in the global output from 40% in 1990 to 50% and expected to grow to 60% by 2035. The Global recession resulted in a deliberate greater government intervention in most countries to save respective banking systems from collapsing. As a result, there is a significant role to be played by governments in the economies of most countries which might have a negative impact of financial protectionism in some instances or lead to greater global financial coordination and transparency. In the ‘new normal’, the West has lost its ability to set the global agenda as seen in the transition from a G-7 to a Group of 20 which includes players in the Emerging Markets like Brazil, Russia, India, China, South Korea, Saudi Arabia...
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