Week 4

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 Resource-based perspective: This perspective focuses on a company's internal

strengths and weaknesses, such as its resources, capabilities, and core


competencies. It emphasizes leveraging these internal factors to gain a competitive
advantage.
 Positioning perspective: This perspective focuses on how a company positions itself
relative to its competitors in the external market. It emphasizes understanding
market dynamics, customer preferences, and competitors' strategies to establish its
unique spot.

Apple

 Key resources: Apple's resources may include its intellectual property (like patents),
physical assets (such as manufacturing facilities), and financial resources (like cash
reserves).
 Capabilities: Apple's capabilities could be its product design and development,
supply chain management, and marketing expertise.
 Core competencies: Apple's core competencies might include its innovative product
design, seamless integration of hardware and software, and strong brand loyalty.
 Competitor imitation: Apple's design and branding might be difficult for competitors
to imitate quickly, but they could replicate certain supply chain practices ( Supplier
relationship, Logistics management, Quality control) or develop similar products.
 Changes in external environment: Shifts in technology trends or changes in
consumer preferences could make Apple's current resources, capabilities, and core
competencies less valuable if the company fails to adapt quickly.

Amazon

1. Key Resources: Amazon relies on its online platform where people can buy and sell
goods (like a huge online marketplace), its cloud computing service called Amazon
Web Services (which many companies use to run their websites and apps),
warehouses where products are stored and shipped from, advanced technology to
analyze data about customers, and a large network of delivery services.
2. Capabilities: Amazon is really good at managing relationships with customers, using
algorithms to recommend products people might like, making sure deliveries are fast
and reliable, and allowing other companies to sell their products on its platform.
3. Core Competencies: Amazon's strengths lie in its ability to operate at a massive
scale, always putting customers first, making decisions based on data, and offering
benefits like its Prime membership program with perks like fast shipping and
streaming services.
4. Imitability: Because Amazon is so big and has invested a lot in its infrastructure, it's
hard for other companies to copy everything they do exactly. But some parts, like
how they handle deliveries or customer service, can be copied if a competitor is
willing to spend a lot of money.
5. Vulnerability: Changes in laws that affect online shopping or privacy, more
competition from big retailers or tech companies, or problems with getting products
from suppliers can all cause issues for Amazon.
 Apple's value chain includes activities like product design, manufacturing, marketing,
distribution, and customer service.
 Its value system involves interactions with suppliers, distributors, and customers, as
well as partnerships and collaborations that contribute to the overall value creation.
 Advice for managers: Depending on specific challenges or opportunities, managers
may need to improve certain value activities (e.g., enhancing product design or
streamlining distribution channels) or even consider changing the organization's
approach to certain aspects of the value chain (e.g., exploring new partnerships or
distribution models).

4.

Competitive Intelligence: Competitive intelligence involves gathering and analyzing


information about competitors, market trends, and industry dynamics. By understanding
competitors' strengths, weaknesses, and strategic initiatives, firms can gain a competitive
advantage. For instance, they can identify untapped market opportunities, anticipate
potential threats, and fine-tune their strategies accordingly. Additionally, competitive
intelligence helps companies to assess their own performance relative to competitors and
identify areas for improvement. Overall, it provides a comprehensive understanding of the
competitive landscape, enabling firms to make strategic decisions with confidence.

Benchmarking: Benchmarking involves comparing a company's performance, processes,


and practices against industry leaders or best-in-class standards. By benchmarking against
top performers, firms can identify opportunities for improvement and implement best
practices to enhance their own performance. Benchmarking also allows companies to set
realistic performance targets and track progress over time. Moreover, benchmarking can
provide valuable insights from other industries or sectors, enabling firms to adopt
innovative approaches and stay ahead of the competition. Ultimately, benchmarking
promotes continuous learning and improvement, driving organizational excellence.

Integration and Impact: When combined, competitive intelligence and benchmarking offer
a comprehensive view of the competitive landscape and internal performance. This
integrated approach empowers firms to make data-driven decisions, refine their strategies,
and allocate resources effectively. By leveraging insights from competitive intelligence and
benchmarking, companies can identify strategic opportunities, mitigate risks, and enhance
their competitive position in global markets. Overall, competitive intelligence and
benchmarking are indispensable tools for driving success and sustaining competitiveness in
today's dynamic business environment.

Competitive Intelligence: Competitive intelligence means gathering and analyzing


information about competitors and market trends. It helps companies understand what
their competitors are doing and where they stand in the market. By knowing this,
companies can make better decisions and find ways to improve.

Benchmarking: Benchmarking involves comparing a company's performance to others in


the industry. It helps companies see how they measure up against the best and find areas
where they can do better. Benchmarking also lets companies learn from others and adopt
new ideas to improve their own performance.

Impact: By using competitive intelligence and benchmarking together, companies can make
smarter decisions, spot opportunities, and stay ahead of the competition. They can learn
from others, improve their own performance, and succeed in a fast-paced global market.

Part -2

Clothing Industry Supply Chains: In the clothing business, companies often find suppliers
from different parts of the world to make their clothes. These suppliers handle various steps
like making the clothes and checking their quality.

Zara's Different Approach: Unlike many other clothing companies, Zara does things
differently. Instead of relying on lots of different suppliers, Zara owns its factories and
controls much of the production process. They have factories in Spain where they dye and
cut fabric, and then small workshops in Spain and Portugal where they sew the clothes.
After that, all the finished clothes go to a Zara facility to be prepared for sale.

Advantages of Zara's Model: Because Zara controls its production so tightly, they can make
and sell new clothes very quickly. They don't have to wait long to see what customers want,
and they can adjust their production accordingly. This means they can introduce a lot more
new clothes each year compared to other companies.

How Zara Works Inside: Zara's stores order new clothes twice a week, and the managers
decide what to order based on what customers seem to like and what's selling well.
Sometimes, Zara sends new clothes to stores even if they weren't ordered, just to see how
customers react.

Getting Clothes to the Stores: Zara's distribution centers are equipped with conveyor belts
to quickly sort and send clothes to the stores. Orders usually arrive at the stores within a
day or two and are put on the shelves right away.

Zara's Expansion: Zara started in Spain but has expanded all over the world. Even as they
opened stores in other countries, they kept their main distribution centers in Spain. They
also opened smaller distribution centers in other regions like the Americas and Asia.
Success of Zara: Zara's way of doing things has been very successful. They keep growing and
opening new stores around the world, even though they don't spend much on advertising.
Instead, they invest their money in opening more stores.

1. Comparison of Zara's Supply Chain with Typical Supply Chains of Other Clothing
Retailers:
Zara's Supply Chain:
 Vertical Integration: Zara owns its manufacturing facilities, allowing it to
control the entire production process from designing clothes to selling them
in stores.
 Quick Response: Zara can introduce new clothing items throughout the year,
reacting rapidly to changing fashion trends and customer preferences.
 Short Lead Times: With its vertically integrated supply chain, Zara can move
from designing a garment to having it in stores for sale in just three weeks.
 Reduced Sales Forecast Dependency: Zara doesn't heavily rely on predicting
future sales. Instead, it adjusts production based on real-time sales data,
reducing the risk of overstock or stockouts.
 Efficient Distribution: Zara's distribution centers ensure swift delivery of
products to retail stores, typically within one to two days of ordering.
 Limited Advertising: Zara invests more in store expansion than traditional
advertising, relying on the appeal of its products and the shopping experience
in its stores.
Typical Supply Chains of Other Clothing Retailers:
 Outsourcing: Many retailers outsource production to manufacturers in
different countries, leading to longer lead times and less control over
production processes.
 Seasonal Collections: Most retailers follow the traditional fashion industry
model, introducing new collections seasonally with fewer new items
throughout the year.
 Longer Lead Times: Due to outsourcing and reliance on global supply chains,
lead times for new products are typically longer compared to Zara's.
 Heavy Sales Forecasting: Other retailers heavily rely on accurate sales
forecasts to plan production, which can sometimes lead to surplus inventory
or shortages.
 Advertising Focus: Traditional retailers often invest significantly in advertising
and marketing to drive sales and build brand awareness.
2. Replicating Zara's Business Model by Other Clothing Retailers:
While Zara's business model offers several advantages, it may be challenging for
other retailers to replicate it entirely due to various factors:
 Capital Requirements: Establishing manufacturing facilities and distribution
centers requires substantial initial investment, which may be prohibitive for
smaller retailers.
 Operational Expertise: Managing a vertically integrated supply chain
demands specialized knowledge and expertise in manufacturing and logistics,
which not all retailers may possess.
 Speed and Flexibility: Achieving Zara's level of speed and agility in
responding to market trends requires a culture of innovation and adaptability
throughout the organization.
 Scale Challenges: Zara's success is partly due to its global scale, which smaller
retailers may struggle to achieve.
 Brand Positioning: Zara's strategy of minimal advertising and focus on store
expansion may not align with the branding strategies of other retailers.
However, aspects of Zara's approach, such as shorter lead times and more frequent
product introductions, can be adopted by other retailers to enhance their
competitiveness and responsiveness to customer demands. This might involve
partnering with local manufacturers, investing in technology for supply chain
optimization, and fostering a culture of innovation within the organization.

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