Supply Chain Management and Zara's Strategies
48 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary role of a master distributor in a supply chain?

  • To sell directly to end-users
  • To act as a single point of contact for wholesalers (correct)
  • To manufacture products
  • To eliminate wholesalers from the supply chain

    • Master distributors sell directly to end-users.

    False

    How many branches do the wholesalers associated with a master distributor have?

    4,000

    A master distributor typically serves as a _____ for multiple manufacturers.

    <p>intermediary</p> Signup and view all the answers

    What type of customer typically purchases from master distributors?

    <p>Electrical contractors</p> Signup and view all the answers

    Match the following roles in the distribution channel:

    <p>Master Distributor = Intermediary for wholesalers Wholesalers = Sell to contractors Manufacturers = Produce goods Contractors = End-users in B2B</p> Signup and view all the answers

    What is one of Zara's primary strategies for maximizing turnover?

    <p>Implementing a market-responsive assortment of clothing</p> Signup and view all the answers

    What is one key service that master distributors provide to their partners?

    <p>Fast delivery</p> Signup and view all the answers

    Zara's model includes heavy investment in communication at all levels of its business.

    <p>True</p> Signup and view all the answers

    What advantage does owning its own dyeing company provide Zara?

    <p>It allows Zara to buy undyed fabric and tailor colors based on market trends.</p> Signup and view all the answers

    Master distributors diminish the efficiency of the supply chain.

    <p>False</p> Signup and view all the answers

    Zara avoids large overstocks by not making large batch volumes of any styles, which helps it to avoid __________.

    <p>heavy markdowns</p> Signup and view all the answers

    Match the following aspects of Zara's operations with their benefits:

    <p>Owns dyeing company = Allows customization of fabric colors based on trends Flexible manufacturing = Quick response to popular styles Vertical integration = Control over production process Limited batch volumes = Reduced risk of large overstocks</p> Signup and view all the answers

    Where is Zara’s warehousing primarily located?

    <p>Galicia</p> Signup and view all the answers

    Zara frequently marks down merchandise due to large overstocks.

    <p>False</p> Signup and view all the answers

    How does Zara's design team ensure they remain relevant in fashion?

    <p>By quickly learning about 'hot' styles mid-season.</p> Signup and view all the answers

    Which retailer is known for convenience/forecourt specialty in Canada?

    <p>Alimentation Couche-Tard Inc.</p> Signup and view all the answers

    Mercadona, S.A. has a growth percentage of 9.7%.

    <p>True</p> Signup and view all the answers

    What is the primary sector of Kohl’s Corporation?

    <p>Department</p> Signup and view all the answers

    The retailer _____ operates in Brazil as a cash and carry/warehouse club.

    <p>Grupo P</p> Signup and view all the answers

    Match the following companies with their primary type of retail:

    <p>Inditex S.A. = Apparel/footwear specialty El Corte Ingles = Multi-specialty including apparel and home improvement Coop Group = Cash and carry/warehouse club J.C. Penney Company, Inc. = Department</p> Signup and view all the answers

    Which of the following companies has the highest revenue listed?

    <p>Migros-Genossenschafts-Bund</p> Signup and view all the answers

    Coop Group operates solely in Switzerland.

    <p>False</p> Signup and view all the answers

    What is the growth percentage associated with J.C. Penney Company, Inc.?

    <p>-1.1%</p> Signup and view all the answers

    Which type of store has a low margin and broad breadth?

    <p>Warehouse club</p> Signup and view all the answers

    A convenience store has a high margin and shallow depth.

    <p>False</p> Signup and view all the answers

    What is the primary characteristic of a category killer in retail?

    <p>Narrow depth and moderate turnover.</p> Signup and view all the answers

    A ___ store offers a deep range of products but a narrow selection.

    <p>specialty</p> Signup and view all the answers

    Match the retail types with their characteristic margins:

    <p>Department store = Moderate margin Convenience store = Very high margin Mass merchandiser = Low margin Hypermarket = Low margin</p> Signup and view all the answers

    Which retail store has an extremely high delivery time and a narrow breadth?

    <p>Mail order/catalog</p> Signup and view all the answers

    A warehouse club has both high turnover and broad breadth.

    <p>False</p> Signup and view all the answers

    What is Zara's primary target market?

    <p>Fashion-conscious, young, female buyers of clothing</p> Signup and view all the answers

    The average wait time at a specialty store is considered to be _____.

    <p>low</p> Signup and view all the answers

    Zara was founded in Japan.

    <p>False</p> Signup and view all the answers

    What key combination does Zara's retail model appear to provide?

    <p>Control of costs and meeting consumer demands</p> Signup and view all the answers

    Zara uses a low-margin, high-_______ model of retailing.

    <p>turnover</p> Signup and view all the answers

    Match the following aspects of Zara's operations with their descriptions:

    <p>Assortment and Variety = Extensive and novel offerings Quick Delivery = Extremely fashion-forward availability Vertically Integrated Operations = Control across logistics and production Small-batch Production = Flexibility in manufacturing</p> Signup and view all the answers

    Which of the following best describes Zara's approach to product lines?

    <p>Constantly revamped with new designs</p> Signup and view all the answers

    Zara's target consumers display indifference towards pricing.

    <p>False</p> Signup and view all the answers

    What is the primary service output demanded by Zara's target consumers?

    <p>Assortment, variety, and quick delivery</p> Signup and view all the answers

    What significantly changed the operational aspects in the industry?

    <p>Use of IT and automation</p> Signup and view all the answers

    Firms that adopted a poor approach in picking strategies thrived in the market.

    <p>False</p> Signup and view all the answers

    What technology did wholesalers use to enhance their inventory management?

    <p>Bar coding and scanning</p> Signup and view all the answers

    Technology enabled wholesalers to provide __________ accounts receivable to their customers.

    <p>computerized</p> Signup and view all the answers

    Match the following concepts with their impacts:

    <p>IT and automation = Restructured operations Bar coding = Improved inventory management Electronic order systems = Reduced reliance on salespeople Mergers and acquisitions = Consolidation of firms</p> Signup and view all the answers

    What was one strategy that firms adopted to benefit from their investments?

    <p>Acquiring other firms</p> Signup and view all the answers

    Wholesalers utilized direct data entry systems to enhance their operations.

    <p>True</p> Signup and view all the answers

    What is one benefit that pharmacies gained from wholesaling systems?

    <p>Credit accounts</p> Signup and view all the answers

    Study Notes

    Retailing Structures and Strategies

    • Modern retailing is intensely competitive, innovation-oriented, and populated by an ever-growing variety of institutions, constantly buffeted by a highly fluid environment.
    • Retail positioning strategies flow from both cost-side and demand-side factors.
    • A retailer's positioning strategy is a set of service outputs delivered to the market, differentiating them from competitors, even if the products sold are identical.
    • Important trends affecting retail management include consumer and channel developments.
    • Retail power and coordination issues with suppliers and how suppliers respond are important.
    • Retailers' increasing globalization affects both the retailers that sell outside of their national borders and their local competitors.

    Retail Structures

    • Retailing involves selling goods and services to ultimate consumers for personal consumption.
    • The distinction between retail and wholesale sales is critical because buying motives support market segmentation.
    • Retail success comes in many shapes, sizes (e.g., supermarkets, hypermarkets, department stores), and cultural origins (e.g., mail order, online, direct selling)
    • Food retailing is a major channel component for many retailers.
    • Wal-Mart is the most dominant worldwide retailer, with sales more than three times greater than that of the next largest retailer, Carrefour.
    • The U.S. has many large retailers, 30 of the top 100 headquartered in the US. European countries have 46, and Japan, 8.
    • The globalization of retailing is clear from data, with top ten retailers operating on average in 15.6 countries against 9.3 in prior years.

    Retail Positioning Strategies

    • Cost-side strategies focus on margin and inventory turnover goals.
    • Demand-side strategies decide the service outputs to provide shoppers.
    • Costs-side strategies (high-service): Higher margins, lower turnover. Low-price strategies (low-service): Lower margins, high turnover (e.g., Wal-Mart).
    • Retailers need to find a balance that suits their target consumer segments.
    • Examples of companies that successfully maintain a low margin/high turnover model include Zara and H&M.
    • Retailers need to consider how these choices shape their overall strategy.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Marketing Channel Strategy International Edition PDF

    Description

    This quiz explores the roles of master distributors in supply chains and delves into Zara's innovative business strategies. Test your knowledge on distribution channels, customer types, and the advantages of Zara's operational decisions. Gain insights into how these factors contribute to effective supply chain management.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser