Zara's Disruptive Vision
"Zara's Disruptive Vision" Chapter 12
Your assignment is to identify one major issue in the case study, provide background for it, analyze it, and reach a conclusion. Your written work should follow the outline: BACKGROUND, ISSUE, ANALYSIS, and CONCLUSION. You should use these words as headings for your writing. Your work should be typed and double-spaced in Times New Roman 12 font. About two typewritten pages will be sufficient for this assignment.
BACKGROUND: The background should establish a context for the issue. It presents the situation out of which the issue arose. It should provide enough information about the situation so that the reader can understand the issue.
ISSUE: The issue should be presented as a question that can be answered YES or NO. For example, your question could be: Should this company continue to invest in emerging markets? That is a productive question since it leads to an analysis. An unproductive question could be: How did this company expand in emerging markets? That question leads only to a description of what the company did and may not force any critical thinking. So always frame your question so that it can be answered YES or NO, keep the question simple, and do not ask multiple questions since that will complicate your analysis.
ANALYSIS: Your analysis should examine both sides of the question. You should present at least three arguments on each side of your question, YES and NO, and
your arguments should be supported by facts from the case and/or information from the reading assignment. In your analysis you should also apply at least one concept from the reading assignment.
CONCLUSION: Your conclusion should answer your question, YES or NO. You should evaluate the arguments you presented in your analysis and make a decision based on the weight of the evidence. In your conclusion you should summarize the arguments that support your decision. Please note that there is no right or wrong answer. Whatever you decide is valid as long as your conclusion is supported by your analysis.
Be sure to cover each component of this process adequately.
Part 2
At the bottom
Answer this question only one paragraph "Are value chains a useful tool for strategy?"Find an article and write a summary (one paragraph) of how the information provided by the article answers the question. Your work, which should be typed and saved as a file, should have the name and source of the article on top and then your summary.
Zara’s Disruptive Vision” Chapter 12
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Zara’s Disruptive Vision” Chapter 12
Background
Zara puts little focus on marketing and promoting its products. Instead, the company is keen on maintaining high fashion standards, quality products, and affordability. Like any other business, marketing and promotion are critical for increasing sales and revenue earned (Kato, 2018). Zara puts minimal emphasis on the promotion of its products. The company spends an average of 0.3 percent of its profits on advertising and sales (Gallaugher, 2011). It largely relies on referrals through word of mouth by its loyal customers. Additionally, Zara prioritizes marketing through high-profile real estate by setting up its stores strategically in prime areas close to luxury brands to attract a similar client base.
Issue
Should Zara emulate more advertising and marketing as promotional strategies for its products?
Analysis
Zara does not actively engage in marketing and advertising its products. However, the company enjoys significant profits from customer referrals and returning customers who frequent and purchase from the company (Gallaugher, 2011). Zara also competes in the markets through public relations strategies that enable them to enjoy a stable customer base. Thirdly, despite not being keen on marketing, Zara has maintained competitiveness and sustainability in the markets by maintaining high-quality standards of its products and meeting its customer’s needs (Gallaugher, 2011). However, technological changes and the rise of e-commerce threaten the company’s positioning in the market since it is not keen on marketing and promoting its products. For instance, the peak of the pandemic limited physical shopping as a large population of shoppers moved to online shopping. The lack of strong online marketing threatens Zara’s competitiveness and sustainability as shoppers shift to competitors with a significant online presence (Mafalda & Morgado Costa, 2017). Additionally,...