Zara and Netflix Case Studies, Essay Example

For the Zara case, there are several steps that were taken by Zara that proved to be an unprecedented and profitable for the company. Zara utilized technology in order to progress their business. Zara depended on a technology customers to coordinate their supplies, and vertical integration. They first brought unprocessed cloth in deciding the color dye to use, and deciding the garments to make with the cloth. Technology helped to increase their productivity, as their manufacturing lines, where able to produce more product that increased their sales. Zara’s was able to product on the shelves in less than two weeks, compared to their competition that took six to nine months. Zara’s Point of Sale system was capable of providing real time data that Zara was instantly able to view. Zara’s design strategy was another intuitive step where they didn’t use the standard catwalks like other big fashion houses, but they designed based on demand from the customers, which cancels out the need for advertising, and markdowns. Within their model, logistics and manufacturing were the key factors in Zara’s being highly successful.

Netflix has provided a product that people are willing to pay for. They have strategically position themselves to be the leader in streaming movies. Technology is continually changing, and it poses a long term threat to Netflix. Netflix relies on subscription based pay, which is constantly being a challenge as the prices of movie rights will increase, that will no doubt affect the prices. While Netflix works to keep the price manageable, they also have the threat with companies that can offer movies that are more current based on their distributors. Netflix has offset this threat by creating their own content that can be used in distribution deals, and gain more movie options. Looking at the competition, Netflix is the better of Hulu, and others. Netflix has customer loyalty, distribution deals, and TV shows selections. In comparison for a higher price paying for the competition users are able to get newer movies streamed to their devices.