1. As completely as possible, sketch the supply chain for Zara from raw materials to consumer purchase.
2. Discuss the concepts of horizontal and vertical conflict as they relate to Zara.
3. Which type of vertical marketing system does Zara employ? List all the benefits that Zara receives by having adopted this system.
4. Does Zara experience disadvantages from its “fast-fashion” distribution system? Are these disadvantages offset by the advantages?
5. How does Zara add value for the customer through major logistics functions?

One global retailer is expanding at a dizzying pace. It’s on track for what appears to be world domination of its industry. Having built its own state-of-the art distribution network, the company is leaving the competition in the dust in terms of sales and profits, not to mention speed of inventory management and turnover. Wal-Mart you might think? Dell possibly? Although these two retail giants definitely fit the description, we’re talking here about Zara, the flagship specialty chain of Spain-based clothing conglomerate, Inditex.