Zara Fast Food from Savvy Systems

800 Words4 Pages
Name: _________Sarah Yarnall________________ Grade: _______________ Date: _____________1/26/15________________________ Case #: __________1__ Case Name: ___Zara: Fast Fashion from Savvy Systems___ 1. What is the “conventional wisdom” of the fashion industry with respect to design, manufacturing, and advertising? Convention wisdom suggests that leveraging cheap contract manufacturing in developing countries can keep the costs of goods low. Contract manufacturing, which involves outsourcing production to third party firms, companies do not own plants or directly employ the workers to produce the requested goods. By doing this firms can lower prices and sell more product or maintain higher profit margins- all good for the bottom line. In the fashion markets today, fashion trends are constantly changing fast. Poor trend forecasting or slowing of unsold inventories will cause product to be marked down or written off, which create cost-cutting measures to be implemented. The downside to the conventional wisdom method is in order to have the lowest cost, contracted firms may ignore environmental concerns, employ child labor, withhold on safety and engage in other ghastly practices. 2. What do you suppose are the factors that helped Gap to at one point rise to the first in sales in the fashion industry? There are many reasons that helped Gap rise to the first in sales in the fashion industry at a time when fashion was using the conventional methods. For years, Gap sold of its inventory in stores, keeping minimal inventories in storage. Also the designers of Gap clothing were spot on with the design tastes of their customers. This was only for a short period of time, but it did allow Gap to rise to the top. During the 90’s Gap was able to use positive advertising to push their unisex clothing to gain support by both genders. The only objective
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