- Question One
The role of a store manager in Zara is different in other retailer shops in various ways. A store manager in Zara is mandated to ensure that all the brand specifics and all issues relating to generic marketing are implemented on time. Also, he or she is responsible for facilitating and managing all the promotional activities in the store which is not the role of store managers in other retailer outlets.
- Question Two
Zara innovative approaches to value creations are disruptive of the existing practices in the global apparel industry in various ways. This is because it requires the retail outlet to focus more on the current trends in the global market before designing, branding and implementation of the promotional program for the store (Petro, 2015). This has led to the delay in implementation of common practices within. Further, the store has been forced to invest in the latest technology in all aspects which requires it to invest in training of their employees and outsourcing for some skills outside the company. This has disrupted the existing practices in the global apparel industry because Zara is a pacesetter; hence, similar firms are trying to adopt their new practices and technologies.
- Question Three
Setting up a second distribution center in China or Asia will increase the company’s market share and clients in the global market. This will have positive implications for their revenues and profits. On the other hand, this is very risky because these regions prominent competitors who have already established themselves in the market, thus, the company might take long before it gets established in the region. Thus, the company should conduct a market research and survey before it establishes itself in any of these regions.
Petro, G, (2015). The future of fashion retailing: Forbes magazine. Retrieved from: http://www.forbes.com/sites/gregpetro/2015/07/23/the-future-of-fashion-retailing-revisited-part-2-zara/#5666170113cc