tag:blogger.com,1999:blog-5357884563112855603.post843149708249162688..comments2024-03-23T18:02:04.769+01:00Comments on The Business Model Database (tbmdb.com) - A blog about business models: Business model example: Zara - A devastating business modelAnders Sundelinhttp://www.blogger.com/profile/10744902263118677960noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5357884563112855603.post-52601619028833961312009-12-15T20:27:57.601+01:002009-12-15T20:27:57.601+01:00Thanks for your comment Richard!
You are right i...Thanks for your comment Richard! <br /><br />You are right in that H&M also rely on short product cycles for some of its clothes but they tackle this in a different way. H&M uses outsourcing, foremost in Asia, while Zara is fully vertically integrated, with more than half of its factories in Europe. Another major difference is that H&M keeps a large inventory of basic items (produced and shipped from Asia) whereas Zara order new ones based on sales. <br /><br />It is fascinating that two companies in the same competitive market have similar challenges, uses different models, yet both companies are very successful.Anders Sundelinhttps://www.blogger.com/profile/02704816433435557846noreply@blogger.comtag:blogger.com,1999:blog-5357884563112855603.post-13650304497788769152009-12-14T08:26:48.903+01:002009-12-14T08:26:48.903+01:00Isn't this similar to the H&M model? Don&#...Isn't this similar to the H&M model? Don't they also rely on short product cycles?Richard Carlssonnoreply@blogger.com