ZARA CaseQuest Assignment Example | Topics and Well Written Essays - 1750 words

ZARA CaseQuest - grant ExampleUsing centralized manufacturing, the play along has maintained standards within the planetary arena as crossways operational anywhere exhibit no discrepancies in quality. This has contributed significantly to the high levels of customer satisfaction, leading to customer loyalty. The company continues to maintain customers through ensuring similar levels in growth quality, hence assuring customers of quality in Zara products. game quality products have in turn brought high sales placing the company in a global market leadership position. Combinations of other business strategies aimed at strengthening the company position have excessively had influence in maintaining the companys position, globally. Business Model (GAP) Gap Company has taken the attack of outsourcing manufacturing in different Asiatic countries. Outsourcing in these countries aims at utilizing the cheap labor available in Asian countries. The company hopes to reduce production c osts through utilization of cheap labor, and achieve significant clear margins (George & Bock, 2012). The outsourcing model of manufacturing presents several risks to the business in standardization of numerous business elements. Standardization of products and service deliverance becomes extremely difficult for the company to control. This could be attributed to the different manufacturing technologies and management styles available in different countries. In some countries with limited technological advancement, required product standards might be difficult to reach. This method likewise presents the risk of fake products being introduced into different international markets using the Gap transaction name. Gap invests severely on advertising because of the approach taken in manufacturing. The outsourcing approach could lead into product quality agree that necessitates intensive advertising, aimed at convincing doubting customers. The intensive advertising conducted by Gap a ims at creating product awareness in the different countries where the products are available. The availability of the product shall be notified to the customers through advertising. The company shall be able to conduct market analysis aimed at improving distribution channels utilized and creating policies regarding product improvements. The advertising process can also enable the company to effectively undertake competitor analysis, and lay downd a competitive advantage over them. Gap company does not have specific times when reinvigorated products can be introduced however, most introductions occur during the month of August. The company takes as a trend typographer approach, therefore, decisions regarding new products result from market analysis to identify existing gaps. Introduction of new products follows the need to create a unique design, resulting from market research indicating need for such design. The company receives its income through the sales achieved from the sub sidiaries. The subordinate word businesses have to undertake internal financial analysis and establish the profits experienced during a trading period. The profits from different subsidiaries become the companys income. The subsidiaries must make deductions of all subsidiary expenses incurred in advance arriving at profit remitted to the parent company as income. The core competency of Gap remains the efficiency to coordinate diverse manufacturing plants in delivering globally standardized products (Galunic & Rodan, 1998). Diversification in manufacturing locations remains a total core competency for the company. The competitive advantage for Gap remains the utilization of cheap labor in Asian counties,