In what ways is the Zara model counterintuitive? In what ways has Zara’s model made the firm a better performer than Gap and other competitors?
There are several ingenious steps taken by Zara that proves both profitable and unprecedented. Zara has used technology to revolutionize their business, from buying the unprocessed cloth to determining which color die to use and what to make with that cloth. The technology process continues on the manufacturing lines and all the way to the final sale.
But it does not stop there, it goes beyond the point of sale to question the reasons why a purchase was not made after a client expressed an interest in an item. The point of sale system provides real time data which is given immediate attention. PDAs are actively gathering information which is constantly been taken into consideration. The design strategy is another intuitive step. They do not follow custom catwalk fashion shows, instead they design based on customer demand.
Manufacturing and logistics is a key contributor to their highly acclaimed success.
The ability to have a product ready and on the shelves in ten days vice the competitor’s time of approximately three to nine month is where the strength of flipping their dollar lies and is accomplished mainly through vertical integration and technology orchestrated coordination of supplies. Deliver to replenish and deliver new stock is an expedited process, in some cases deliver is made overnight. Items placed on the shelves are readily picked up and nothing is ever marked down in a sale. Zara identify and manufacture the clothes customers want, get those products to market quickly, and eliminate costs related to advertising, inventory missteps, and markdowns
2. What do you believe are the most significant long-term threats to Netflix? How is Netflix trying to address these threats? What obstacles does the firm face in dealing with these threats?
Netflix has created a product that the customers want and are willing to pay for. The Netflix model has a true strategic position and is poised for sustainable competitive advantage through value, rarity, a tough to imitate process and procedure and substitute which are not equal. The most significant long term threat is the ever changing technology and how to harness its full potential for sustainability. The other companies such as apple are known for their innovations over the years and are working feverishly to create something that will rival Netflix. Netflix has no store front and relies on the internet for much of it business. If the internet were to undergo or develop any major issues then Netflix could suffer adversely.
Bandwidth is also a major issue as Netflix tries to shift from atoms to bits and the competition encroaches. Much care has to be taken so as not to make any wrong moves. Netflix has already begun to visualize and implement solutions to the burgeoning issues. The FCC is aware of the bandwith issues and are working with Netflix to offer more bandwidth on an on demand basis instead of giving each household a cap.
3. Spend some time online researching services such as Netflix, BlockBuster, Hulu, and other streaming movie sites. How do these services compare? What are the advantages and disadvantages of each of these different services?
Netflix offers a buffet of all you can watch while Blockbuster is a pay-per-view video-on-demand service. The streaming plan copled with the DVD subscription is 15.98 and gives access to TV shows, streaming videos, web browsers and internet connections. Multiple devices can be connected to one account and switching and resuming is not an issue. Due to licensing Netflix movie content tends to be a bit older when compared to Blockbuster and a current movie is never available for viewing.
While Blockbuster is a little more expensive their offerings is more current. Another disadvantage is that Blockbuster is supported on fewer devices. Hulu’s pricing of 7.99 offers unlimited viewing but its mostly older content and TV shows. One of the major disadvantage to Hulu is that it’s a paid service that airs advertisements. The good news is the support that Hulu offers. There are a wide variations on which Hulu can be viewd.
4. Describe some of the features of the information system that you chose in week one (make sure you have an approved information system before you complete this assignment). For each feature, describe how that feature is used, what data inputs the system receives through that feature, and what information outputs can be accessed through that feature.
The ability to pay bills online, over the phone or on the internet. Ease of user Flexibility
Nation wide coverage
Variety of services
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