How Does Zara Differ from Its Competitors in Converting Ideas

question 47

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 social media, 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 focusing on a smaller number of products than rivals like Gap, Zara manages to limit exposure to wrong guesses.

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Definitions:

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable by holding others constant.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.

Bond

A fixed-income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest and the return of the principal at maturity.

Treasury Bill

Short-term, highly liquid government debt obligation issued at a discount from the face value and returning the face amount at maturity.