Entrepreneurship Innovation: Zara Case Study

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Entrepreneurship Innovation Subject Question 1 There are disadvantages for the firms that enter late into a settled industry where they have to compete with established giants. On the other hand the smaller new entrant has advantages that the big firm does not. For one, a smaller firm that is late has access to the model of the demand in the market and can come up with a quick innovation that can take the market by storm. Zara brand is one such innovation that has pierced the market for textiles catering to a wide variety of segments that have been hitherto out of the purview of the bigger established companies. The success of the strategy is because of factors that are not found in the established business. Flexibility and the ability to innovate and change, coupled with the ability to motivate staff in providing better service seems to have been the reason for the success. The values and ethics of the company must be shared by all the employees and management of the company. This the shared values or value statements can point to the way and the borders of strategic planning- what cannot be crossed, and what must be avoided. Values give direction to planning, and it is thus the value statement that ultimately motivates. (Kernaghan; Borins; Marson, 2000) This motivation coupled with the high end use of technology keeps the company informed of the changes in the market and keeps the market informed of the changes in the product and the management being flexible the

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