Wednesday, May 6, 2020

Case Study The Global Apparel Chain - 1559 Words

Introduction The global apparel chain had been categorized as a typical example of a buyer-driven global chain. The Chain is operating independently and is responsible for its own strategy, product design, sourcing and manufacturing, distribution, image, personnel, and financial results. Zara was the largest and most internationalized chain of Inditex, which is its owner, and on account being a better established chain it expanded into neighbouring markets (Z8). Zara played the lead role in increasing the share of Inditex’s sales accounted for by international operations and it continued to be the principal driver of the group’s growth despite the expected slight drop in the share of the group’s total sales (Z9). Zara will be analysed based on strategic capability, core competences and assets routines and values criteria, predominantly on resource-based view. The resource-based view can be described as the competitive advantage of an organization explained by the uniqueness o f its capabilities (Johnson, Scholes, Whittington, 2005). In addition to this, by that the firms are recognized as internally heterogeneous and possess exclusive masses of resources (McGee, Thomas, Wilson, 2010). Furthermore, the resource-based view emphasizes the internal capabilities of the organization in formulation strategy to achieve a sustainable competitive advantage in its markets and industries (Henry, 2011). Strategic Capability Firstly, we assess and define Zara’s strategic capability.Show MoreRelatedA Companys Corporate Social Responsibility1589 Words   |  7 Pagesin to consumer confidence, the apparel industry illustrates both the best and the worst cases. Today’s consumers are more aware of how multinational corporations are incorporating or failing to incorporate CSR practices throughout the product lifecycle. 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