distribution facility gives the chain a competitive advantage by minimizing the lead-time of their goods. Zara’s internally or externally produced merchandise goes to the distribution center. This is cost-effective due to the close proximities of the distribution center in Arteixo and their factories in Coruna.
Internal Analysis: Zara’s Value Chain
If we look deeper into Zara’s busines
to Retailers:
No inventory cost
No shipping cost and hassles
Buy at wholesale price, sell at retail price
Easier to maintain a huge list
Less risky
Less working capital required.
Where to Produce?
Amazone-retailer, does not produce any goods but sell service!
Better to set up distribution centers in the foreign locations to provide fast and secure delivery.
History of 7-ELEVEN
1927, started from ice cube industry
1946, shifted into convenience store
1991, taken over to 7-ELEVEN JAPAN
Problems of 7-ELEVEN
Third problem was the means of distribution and control of goods in stock. This is the most terrible problems to 7-ELEVEN. Because…
Second , the stores will sell things only if those products can satisfy the needs of customers
market. Its strongholds are Europe and Northeast Asia. For example, it released internet mobile phone in early stage and even a special model ‘VERTU’ diamond decorated phone.
2.2.5 SERVICE
Nokia Care
As a customer service center, Nokia care helps customers to utilize Nokia’s product as much as possible. It successfully operates Nokia care line, Nokia care center, and Nokia authorize
internet, ranking 6th place. However, illegal downloading of music or video files are very common in China. China has the biggest number of illegal down loaders of music files, according to a research conducted in Midem International Music Festival in 2008. Also according to the research about illegal circulation of Korean drama and entertainment programs, 86 percent of total illegal distributi