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08 - Activity - 1 Submit by Wyco

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0% found this document useful (0 votes)
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08 - Activity - 1 Submit by Wyco

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BM2212

Names Wyco, Ma. Clarissa Faith T. Section BSTM-BR601 Date 4/16/24

ACTIVITY
Zara
The big threat to physical stores in the retailing business is the online retailers taking their customers.
This includes highly diversified online retailers. For Zara, the global clothing retailer, the threat comes
from a number of online clothing retailers, such as SHEIN, a Chinese fast fashion online apparel retailer,
and Zalora, a Singaporean fashion store. Brick-and-mortar retailers like Zara are responding by offering
both online and in-store experiences.
Zara has successfully drawn its online customers into the store, with one-third of its online orders being
picked up at a Zara store. Integrating this process into store operations is a major operational challenge
that requires resource investments. Stores must determine how they get products ordered online to the
stores, where to store items ordered online, whether they will offer dedicated checkout lines to online
customers, and whether the firm will rely on personal interactions or automated systems to serve online
customers.
Zara has developed strong competencies in getting products from warehouses to the store but has
struggled to provide effective in-store service to customers. For example, a customer going to a London
Zara found that there was no signage directing him where to pick up his order. He was directed to wait
in a regular checkout line only to be told, after a long wait in line, that he had to go to an upstairs
counter to get his order. There, an attendant found his order form and retrieved his items by hand.
Zara’s solution is to leverage automation to better serve customers. In outlets with large online
businesses, Zara plans to create online kiosks where customers can enter or scan their order code from
their online order. Behind-the-scenes robots would then retrieve the order from a small warehouse built
into the store and deliver it to a drop box where the customer would pick it up.
Industry analysts note that this is a big change for a retailer since it requires the firm to reconfigure store
and storeroom space and develop clear procedures. Though challenging, Zara believes that developing a
resource set that meets the needs of both in-store and online customers best gives the firm the ability
to fend off the online retailer challenge.
Answer the following questions: (2 items x 10 points)

1. Do you think Zara’s solution to leverage automation — online kiosks and behind-the-scene
robots — is a sustainable business strategy?

 When the Zara stores must like in Shein because it is online selling and more
people to buy and choose to products would like it. Yes, it's a business that sustain
because there are many online orders and businesses do shipping, it started on
amazon and is the target of online selling bags that are promoted in other
countries, and it has been known to have a lot of good products online and it has
imitated the Facebook marketplace where I can deliver or meet up. And for those
who don't want to go out to the market, it's the build online selling that I've
already delivered to your home, there are many types of delivery with food, but
the most popular products.
2. If you were part of the decision-making team in Zara, which type of functional strategy would
you adopt to improve the market share position of Zara?

 The only thing that can be adopted is that we all customers are buying so they make
money and in the ratings don't do what you have to do is think about your new
products that I realize to make your customers like to buy more and add products to
its brand new and before it becomes the trend of products and models and you can
also live selling so that more people can buy and mine. Zara is famous online seller
because she is also a Shopee and Lazada for sale products and many are also good at
selling live and working hard to add and design their products.

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