1. Zara Fashions"Designed for Addiction"

Zara is a spanish clothing and accessories retailer. It operates almost 2000 stores in 17 countries and distributes 2.5 million garments per year based on 30,000 "near carbon copies" of high-end fasion designs. Using a "vertical integration" strategy, Zara gets new clothes into its stores twice per week. "creating a need in its customers to regularly update their wardrobes".

Watch the video below about the Zara Fashions . It is 2:55 minutes long. During the video, ask yourself how physical distribution can determine the quality of a service. Is Zara really creating a cause and effect situation here or is this just "hype" that they want their investors to believe?

Source:https://youtu.be/Ir1b-ez2x5g

Answer these questions in your journal:

1. What is "veritcal integration" and how does it work for Zara?
2. What motivates customers to visit the service sites? What's so special about "Z Days"? (You can search the internet for this.)
3. Wouldn't an on-line store work just as well as a brick-and-mortar store? Why or why not?

2.DiscussionRetail Service

In this, identify what you think the risks and opportunities are for a retail service company that wants to add electronic delivery to its mix of channels. This could involve:

a) running a digital service in parallel with its existing physical stores or

b) replacing the physical stores with a website and call center.

Which option do you believe would be a better choice? Provide examples to support argument. Don't just assume that suggestion will work because some other company did the same thing. You need to explain what the situation was, why it worked, and how the circumstances apply to the solution are proposing.