Management
Zara Case Study
Strategic Issue 1
` Majority of retail stores of Zara are wholly owned, which is not allowing the company to achieve desired success
Underlying Causes
Zara wants to ensure tight control on information technology, on information, and quick response that is why it is favoring wholly owned retail stores. But, as a matter of fact, this system is not as effective as franchising and it has slowed down internationalization process in the company.
The company wants to ensure effective control on image that is why it prefers wholly owned retail stores, but there are high capital requirements in that.
Zara, however, also wants to ensure control on lead time so that shortest lead time can be maintained, but this strategy is posing difficulty for the company to enter into the market having legal or cultural barriers.
Strategic Issue 2
Zara is using strategy of imitating designs that is why it is usually questioned for plagiarism.
Underlying causes
The company considers that it can facilitate customers with latest designs but as a matter of fact Zara has to face several problems because of this strategy.
Zara is of the view that with the help of imitation strategy, competitive advantage can be maintained as provision of latest designs that are in demand can be advantageous for company in achieving more market share.
Further, the company is also of the view that this strategy is a way of delivering the desired product to the customers instead of promoting trends of expected seasons via fashion shows and other channels that exert their impact that a fashion industry use in traditional manner.
The company should focus on improving quick response system, and should achieve advantages via vertical integration by cutting cost, time, and reducing conflicts. It should cut cost because it does not focus on outsourcing any channel, it should cut time in order to achieve efficiency, and becoming fast in operations, and it should avoid conflicts to ensure smooth functioning of all channels.
Cola Wars case Study
Strategic Issue 1
Decline in growth of sales of cola
Underlying Causes
There was operational setback in the year 2010 as the companies failed to cope up with the latest needs and requirements of the market.
The companies relied too much on traditional approaches and failed to ensure innovation and creativity as a result of which the companies suffer loss.
Success planning was not adequate in cola market. There was weak succession planning that paved the way to creation of strategic issue in the company.
Strategic Issue 2
Companies fail to meet expectations of investors.
Underlying Causes
There was no proper focus on marinating good relations with suppliers. Timely supply of product is essential in order to fulfill demands of customers. Because of lack of supply cola lost its demand.
Legal issues were not addresses in an adequate manner. This disturbed repute of the organization as a result of which cola lost considerable market share, and had to face loss.
There was execution failure, as formulated strategy was not properly executed and implemented as a result of which coke companies failed to improve efficiency of their operations and faced reduction in market share.
It is necessary that cola companies should address consumer health concerns. They should continue their bottling operations under direct control so that they can ensure flexibility, gain control over distribution, and reduce competition in the distribution network
