Company Capabilities and Value Chain of IKEA Case Study

Company Capabilities and Value Chain of IKEA - Case Study Example A USP is defined as a cutting edge or a differentiation that separates one product or service from its competition. This, however, does not imply that the other products do not sell in the market. In a market, there are several products, each with a differentiation, each with a cutting edge – each having a separate USP associated, and the admirers of the particular benefit are retained by that product/service or brand. For example, in many regions, COKE is stronger in taste compared to PEPSI, and therefore, individuals having taste for stronger beverages prefer COKE, while others go for PEPSI. The critical point in this discussion is that both products sell, and sell well. This way, the capability of a firm to develop a USP has turned on its sale volumes. Subsequently, moving backward in the value chain, when a supplier sees the manufacturer doing well, the supply chain strengthens itself in terms of its operations and processes. Other than the operations in the value chain, t he operations within the manufacturing unit have also illustrated a positive impact. Some authors associate this feel like a current flowing in a wire; it becomes similar to the capabilities flowing back to where it is supplied. The ideas, values are engraved in the roots of the organization and from there, it circulates to all parts of an organization and the business itself indulges in boosting its unique edge for its customer values. Following is the discussion of the IKEA case that depicts a classic example of the same. Fundamentally, IKEA is all about the furniture of various sorts and types and kinds.

The spanish company ZARA, is an example of globalization;how and why Essay

The spanish company ZARA, is an example of globalization;how and why - Essay Example Zara is one of such names as it has long been impacting the life of customers and the economies of many countries that it has maintained its business-base. This piece of research paper examines microeconomic concepts regarding economies of scale, profit strategies, effective use of resources and market forms in relation to Zara’s business and marketing landscapes. This paper aims to illustrate the global business aspects of Zara and explain how Zara has maintained sustainable business as well as competitive advantages. Zara International Inc. is the flagship brand for Europe’s fastest-growing apparel retailer, the Inditex (Industria de Diseno), one of the largest fashion and design retail groups in the world. It runs through more than 4,000 clothing stores in more than 70 countries and 400 cities worldwide (Plunkett, p. 237). Not only the retailing strategies, but also the marketing concepts and ideologies that Zara has been implementing for its business have become better business-model and academically significant strategies. Zara runs more than 200 kids shops in some 75 countries, and sells women’s, men’s and children’s apparel to its customers worldwide. (Yahoo Finance, 2011). As Tamer (p. 484) noted, Zara has emerged to be the leader in rapid-response retailing. Its in-house teams for designing and manufacturing its products produce fresh designs twice a week. The total turn-around time at Zara is just two weeks whereas its competitors have typically an 11-month lead time to move a garment from design to manufacturing. One of the main success factors that helped Zara achieve greater reputation and long term sustainable competitive advantage is that it has always been very fast and flexible in meeting market needs by integrating design, production, distribution and sales through out its own stores. The supply chain system of Zara International Inc is also lightning