1. A threshold capability is difficult to imitate. True or false?

2. A combination of resources will develop (choose one answer):

5 forces

A primary activity

A capability

Strong resources

3.According to the Value Chain theory, a combination of primary and support activities will develop (choose one answer):

A threshold capability

A core competency

A competitive advantage

Key resources

Mango, which originated in Spain, is one of the pioneers in the 'fast fashion' strategic group within the fashion industry. Having approximately 3000 stores across 100 countries at recent count. Traditional competitors take approximately 9 months to complete designing and manufacturing where Mango does the same in four months (with Zara, another leading fast fashion brand, slightly faster than this).

Mango is quick to react to new trends in fashion and is continuously replenished its stores with garments. The company's ability to react quickly to changes in fashion and bring out new collections within a short time was attributed to its business model that involved managing core activates like design (which is centralised in Spain)and distribution in-house while outsourcing non-core, labour intensive activity like manufacturing. To support distribution a computer platform developed in-house by Mango insures effective andlow costdistribution of the right garments to the right stores. It also enables the analysis of sales patterns for sales analysis and merchandise planning. Distribution was a completely in-house activity at Mango. Withdemand controlledproduction, production runs were shorter and while there were speedy deliveries when required. This enabled fast international expansion.

Mango's business model enables it to be more flexible whenever there is a change in the pattern of demand. When it comes to retailing, the company used a combination of own stores and franchisees. In some markets, especially in the developed countries, the company had its own stores. In developing countries and markets which were culturally very different from Spain, Mango chose the franchisee route to expand. In a few countries like the USA, UK and France, it had its own stores as well as Franchisees. Mango also adopted the practice of adopting 'celebrity endorsement 'to enhance its brand image.

Which TWO of following statements correctly identify what couldbe considered to bedistinctive capabilities of Mango?

The combination of speedy feedback from its customers, its quick adaptation and the company's ability to react quickly to changes in fashion contributed towards effective development and cost control. For example, this means minimal inventories, optimal range and quantity of merchandise on display in the stores.

Mango has developed a bespoke in-house computer platform to support distribution that allows it to design high quality clothes.

Analysts attributed Mango's rapid global expansion to its business model. It achieved better risk managementand also'local responsiveness' by adopting this model particularly in the developing markets.

Mango demonstrates a core competence of collaborating with renowned celebrities and fashion models in order to enhance its brand image on social media, and this enables it to react quickly to changes in fashion and speed up deliveries to stores.