Introduction to Operations

Management (Session 3)

Prof. (Dr.) Kaustav Kundu,

Assistant Professor (QT and OM area),
Office No. 306
Case study questions:
Zara has begun an online presence. What changes must be
necessary to its business model to support online sales?
Zara currently has 45 stores in the United States and over
400 in China. Uniqlo aims for 1000 stores in the United
States and 500 in China by 2015. Why the disparity?
Find information on the web about production strategies at
GAP, Mango, and H&M. Compare these to Zara and
Uniqlo. Which of the strategies most aligns with how you
shop as a customer?
Zara’s business model has been called unsustainable.
Uniqlo’s has been called boring. Do you agree? Explain.
Zara has begun an online presence. What changes
must be necessary to its business model to support
online sales?
Available to the customers all over the world.

Improve the transportation network. Tie up with local

transportation network where the demand is low.

Pricing strategy – Cost based upon time and distance

Return policy – There should be some defined rules for

replacement
Zara currently has 45 stores in the United States and
over 400 in China. Uniqlo aims for 1000 stores in the
United States and 500 in China by 2015. Why the
disparity?
 Uniqlo focus on more basic products and its main aim is to
increase the quantity. Therefore, it decides to increase the
number of stores to sell more products.

 Zara focus on high fashionable products and its main aim is to

satisfy the quality. Therefore, it decides to remain with small
number of stores and improves the quality.

 It totally depends on the companies how they want to position

their firm in the market.
Find information on the web about production
strategies at GAP, Mango, and H&M. Compare these
to Zara and Uniqlo. Which of the strategies most
aligns with how you shop as a customer?

This question is more informative. You can find in the

internet.
Zara’s business model has been called unsustainable.
Uniqlo’s has been called boring. Do you agree?
Explain.
 Zara is mainly meant for high fashionable products. With
change in requirements form the customers, the design as well
material of the products changes. But Zara tries to cope up
with the current trend and it succeeds in its business.
Therefore, its business model can not be called unsustainable.

 Uniqlo is meant for basic items to the customers. It utilizes the

traditional production plans for years. It has maintained the
good relationship with the suppliers. It is stable and not
susceptible to the current trend. Therefore, its business model
is quite boring.