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Question 3 (CLO 4) In future, should Zara follow Cost Leadership? If they want to go for differentiation, how will they differentiate in the UAE market? Support your answer rationally. 10 Marks Amancio Ortega built the world's largest fashion empire through his Zara branded products and company-owned stores. Through his management approach, Ortega became quite wealthy. In fact, in 2015 he was the fourth wealthiest person in the world (with a worth of $64.5 billion). This placed him behind only Bill Gates (the wealthiest of all), Carlos "Slim Helu and family, and Warren Buffett. Headquartered in La Corua, in Spain's Galicia region, Ortega founded the Inditex Group with Zara as its flagship brand. Despite Spain's 24 percent unemployment rate and Crippling debt, in 2012 Zara increased its revenue 17 percent. Also in 2012, Zara averaged a new store opening every day, including its six thousandth store launched on London's Oxford Street. Although the influence of the economic environment affects Zara's success, the way Zara uses its resources and capabilities as the foundation for core competencies (core competencies are that serve as capabilities a potential source of competitive advantage for a firm over its rivals) demonstrates the value of understanding a firm's internal organization Ortega built this successful business based on two critical goals: Give customers what they want, and get it to them faster than anyone else. To do "fast fashion as it is called, there are several critical capabilities that must be in place. The first cntical capability is the ability to design quickly; the design pace at Zara has been described as "frantic" The designers create about three items of new clothing a day, and pattern makers cut one sample for each. The second critical capability is the commercial sales specialists from each region where Zara has stores. They provide input on customers' tastes and buying habits which are reported through store managers Each specialist is trained to keep an eye on what people are wearing which Ortega, as well, does personally since founding Zara As such, Zara has a team approach to match quick and creative design with information coming in from the sales staff through Question 2 (CLO 2) What is the current potential and capabilities of Zara? How they can rely on their capabilities to be ahead in the GCC market? 10 Marks Amancio Ortega built the world's largest fashion empire through his Zara branded products and company-owned stores. Through his management approach, Ortega became quite wealthy. In fact, in 2015 he was the fourth wealthiest person in the world (with a worth of $64.5 billion). This placed him behind only Bill Gates (the wealthiest of all), Carlos "Slim Helu and family, and Warren Buffett. Headquartered in La Corua, in Spain's Galicia region, Ortega founded the Inditex Group with Zara as its flagship brand. Despite Spain's 24 percent unemployment rate and Crippling debt, in 2012 Zara increased its revenue 17 percent. Also in 2012, Zara averaged a new store opening every day, including its six thousandth store launched on London's Oxford Street Although the influence of the economic environment affects Zara's success, the way Zara uses its resources and capabilities as the foundation for core competencies (core competencies are that serve as capabilities a potential source of competitive advantage for a firm over its rivals) demonstrates the value of understanding a firm's internal organization Ortega built this successful business based on two critical goals: Give customers what they want, and get it to them faster than anyone else. To do "fast fashion, as it is called, there are several critical capabilities that must be in place. The first entical capability is the ability to design quickly; the design pace at Zara has been described as "frantic. The designers create about three items of new clothing a day, and pattern makers cut one sample for each. The second critical capability is the commercial sales specialists from each region where Zara has stores. They provide input on customers tastes and buying habits which are reported through store managers Each specialist is trained to keep an eve on what people are wearing which Ortega, as well, does personally since founding Zara. As such, Zara has a team approach to match quick and creative design with information coming in from the sales staff through al snartean etarsaariantina fashion ideas hp Question 3 (CLO 4) In future, should Zara follow Cost Leadership? If they want to go for differentiation, how will they differentiate in the UAE market? Support your answer rationally. 10 Marks Amancio Ortega built the world's largest fashion empire through his Zara branded products and company-owned stores. Through his management approach, Ortega became quite wealthy. In fact, in 2015 he was the fourth wealthiest person in the world (with a worth of $64.5 billion). This placed him behind only Bill Gates (the wealthiest of all), Carlos "Slim Helu and family, and Warren Buffett. Headquartered in La Corua, in Spain's Galicia region, Ortega founded the Inditex Group with Zara as its flagship brand. Despite Spain's 24 percent unemployment rate and Crippling debt, in 2012 Zara increased its revenue 17 percent. Also in 2012, Zara averaged a new store opening every day, including its six thousandth store launched on London's Oxford Street Although the influence of the economic environment affects Zara's success, the way Zara uses its resources and capabilities as the foundation for core competencies (core competencies are that serve as capabilities a potential source of competitive advantage for a firm over its rivals) demonstrates the value of understanding a firm's internal organization Ortega built this successful business based on two critical goals: Give customers what they want, and get it to them faster than anyone else. To do "fast fashion, as it is called, there are several critical capabilities that must be in place. The first critical capability is the ability to design quickly: the design pace at Zara has been described as "frantic The designers create about three items of new clothing a day, and pattern makers cut one sample for each. The second critical capability is the commercial sales specialists from each region where Zara has stores, They provide input on customers' tastes and buying habits which are reported through store managers. Each specialist is trained to keep an eye on what people are wearing which Ortega, as well does personally since founding Zara. As such, Zara has a team approach to match quick and creative design with information coming in from the sales staff through