1.

With which of the international competitors listed in the case is it most

interesting to compare Inditexs financial results? Why? What do comparisons
indicate about Inditexs relative operating economics? Its relative capital
efficiency?
With H&M and Benetton due that they have a more similar financial structure
with inditex than gap does. It only surpases Benetton on the operating
economic aspect and it is below gap and H&M, It has more stores and
employees than H&M but still has less sells and a lower financial position
than them.
2. How specifically do the distinctive features of Zaras business model affect its
operating economics? Specifically, compare Zara with an average retailer
with similar posted prices. [In order to express all advantages / disadvantages
on a common basis, you may find it convenient to assume that on average,
retail selling prices are about twice as high as manufacturers selling prices].
Distinctive features:
manufactured its most fashion-sensitive products internally.
The designers tracked customer preferences and placed orders with
internal and external supliers
They eliminated the need of warehouses and keeping inventories low
by shipping directly from the central distribution center to the stores.
The short cycle time reduced working capital intensity and facilitated
continuous manufacture of new merchandise.
Vertical integration helped reduce the bullwhip effect.
Traditional industry models involve cycles that can last from 6 months
to design and 3 months to manufacture.
3. Can you graph the linkages among Zaras choices about how to compete,
particularly ones connected to its quick-response capability, and the ways in which
they create competitive advantage? What does the exercise suggest about such
capabilities as bases for competitive advantage?