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* Note to Instructor The text gives Zara as an example: Zara has control over almost every aspect of the supply chain, from design and production to its own worldwide distribution network. Zara makes 40 percent of its own fabrics and produces more than half of its own clothes, rather than relying on a hodgepodge of slow-moving suppliers. New designs feed into Zara manufacturing centers, which ship finished products directly to 1,161 Zara stores in 68 countries, saving time, eliminating the need for warehouses, and keeping inventories low. Effective vertical integration makes Zara faster, more flexible, and more efficient than international competitors such as Gap, Benetton, and HM. * * Note to Instructor Every year lists the top franchises. This link brings you to their Web site. The top 10 Franchises for 2008 are, in order: 7-Eleven Inc. Subway Dunkin Donuts Pizza Hut McDonalds Sonic Drive In Restaurants KFC Corp. InterContinental Hotels Group Dominos Pizza LLC RE/MAX Intl. Inc. * * Note to Instructor Discussion Question Can you think of an example where two companies join for a 水平营销系统. Students might notice that McDonald’s is in Wal-Mart or their gas station also has a coffee franchise. * Note to Instructor Many major grocers have partnered with Peapod for home delivery of groceries. This link brings you to the Peapod site. Many students may have tried this service. * Note to Instructor Prompt students to point out the advantages and challenges of multichannel systems: Advantages Increased sales and market coverage New opportunities to tailor products and services to specific needs of diverse customer segments Challenges Hard to control Create channel conflict * Note to Instructor The link is to eBay. No doubt students are familiar with this site. Ask them how it might have displaced other channels like classified ads, yard sales, non-virtual auctions, etc. * Note to Instructor Discussion Questions How might customer needs differ? Ask them ho
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