The Capabilities and Core Competencies That Zara Has Developed in the Execution

question 55

Multiple Choice

The capabilities and core competencies that Zara has developed in the execution of its strategy, i.e. rapid production processes and new apparel introductions, are NOT concerned with

• A)bundles of skills and know-how that grew out of the combined efforts of Zara's cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain.
• B)evolving changes in customer needs and competitive conditions that often required tweaking and adjusting Zara's portfolio of competencies and intellectual capital to keep its capabilities freshly honed and on the cutting edge.
• C)acts to bolster skills that contributed to Zara's earlier successes, or acts to respond to customer problems, new technological or market opportunities, and the competitive maneuvers of rivals.
• D)cost-effectively hiring a cadre of people with the right talent and expertise, putting them together in a single work group, and then teaming the work group with Zara's key strategic allies/partners to mesh the skills, expertise, and competencies needed to perform the desired capabilities with some proficiency.
• E)leveraging Zara's core competence into a distinctive competence (or transforming a capability into a competitively superior capability), by concentrating more effort and talent than rivals on deepening and strengthening the competence or capability so as to achieve the dominance needed for competitive advantage.

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Definitions:

Anticipate

To expect or predict something based on current trends or information.

Oligopoly

A market structure characterized by a small number of firms whose decisions about prices and output mutually influence one another.

Oligopolists

Oligopolists are firms within an oligopoly, a market structure characterized by a small number of firms dominating the market, often leading to limited competition.

Compete On Price

A business strategy focusing on offering goods or services at lower prices than competitors to attract customers.