Zara manufactures close to half of the clothes sold in its retail stores and undertakes all of its own distribution from manufacturing plants to retail outlets. Gap outsources production and distribution. Should Zara outsource its manufacturing and distribution? Should Gap backward integrate into production and distribution? Why?
Zara manufactures close to half of the clothes sold in its retail stores and undertakes all of its own distribution from manufacturing plants to retail outlets. Gap outsources production and distribution. Should Zara outsource its manufacturing and distribution? Should Gap backward integrate into production and distribution? Why?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Zara manufactures close to half of the clothes sold in its retail stores and undertakes all of its own distribution from manufacturing plants to retail outlets. Gap outsources production and distribution.
Should Zara outsource its manufacturing and distribution? Should Gap backward integrate into production and distribution?
Why?
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