How Does Zara Differ from Its Competitors in Converting Ideas

question 37

Multiple Choice

How does Zara differ from its competitors in converting ideas into products?

• A) Zara concepts appear in stores in fifteen days on average compared to rivals who receive new styles once or twice a season.
• B) Zara's ideas are inspired by the latest catwalk fashion shows, compared to the intrinsic design processes followed by its competitors.
• C) Zara's design and concept teams use data from customers to predict fashion trends many months into the future and stock up inventory accordingly, as opposed to its rivals.
• D) Collaborations with celebrities help Zara churn out a limited, yet profitable, volume of items every year, while rivals produce a higher volume of less fashionable items.
• E) By employing star designers, Zara manages to conceive a wider range of fashion trends than its rivals.

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Definitions:

Accounting

The systematic process of recording, summarizing, and analyzing financial transactions of a business.

Accumulated Depreciation

The aggregate depreciation charged on a fixed asset since its acquisition.

Loss on Disposal

A financial loss that occurs when an asset is sold for less than its carrying amount on the books.

Gain on Disposal

The profit earned from selling a capital asset for more than its book value.