Module title:

Module code:

An Assignment on
“A Comparative Analysis of Nestlé and Zara's
Supply Chain Management”

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Word count: 4120

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Executive summary
With the aspiration of sustainability, their supply chain is characterized by a broad global reach
and difficulties in coordinating efficiency and ethical standards across complex systems.
Alternatively, Zara’s supply chain is agile and rapid response to fashion trends that can be
enhanced in sustainability with responsible manufacturing practices. The paper suggests
solutions to the sustainability Nestlé approach and Zara’s responsiveness. It also discusses
project management tools like Triple Constraints, stakeholder mapping, and risk implementation
strategies. These reforms will likely transform both companies' performance, efficiency and
competitiveness.

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 Table of contents

Executive summary.........................................................................................................................................................2
Introduction.....................................................................................................................................................................4
Nestlé’s Global Supply Chain Overview........................................................................................................................4
Description of Nestlé’s Supply Chain Structure........................................................................................................4

Operations and Value Chain Analysis........................................................................................................................6

Zara’s Fast Fashion Supply Chain Dynamics.................................................................................................................6

Description of Zara’s Supply Chain Model...............................................................................................................6

Operations Strategy in Fast Fashion..........................................................................................................................8

Comparative Supply Chain and Operations Analysis.....................................................................................................9

Comparative Analysis of Upstream Processes...........................................................................................................9

In-depth Operations Analysis...................................................................................................................................10

Downstream Supply Chain Mechanisms.................................................................................................................11

Theoretical Frameworks Application.......................................................................................................................12

Critical Evaluation of Supply Chain Performance........................................................................................................12

Efficiency, Agility, and Sustainability Factors.........................................................................................................12

Customer-Centric Approach in Supply Chain..........................................................................................................13

Identification of Operational Issues..............................................................................................................................15

Challenges Faced by Nestlé and Zara......................................................................................................................15

Impact on Global Operations and Supply Chain.....................................................................................................16

Strategic Recommendations for Enhancement.............................................................................................................18

Nestlé: Improving Global Supply Chain Sustainability...........................................................................................18

Zara: Enhancing Responsiveness and Flexibility....................................................................................................19

Application of Project Management Tools...................................................................................................................20

Gantt Chart...............................................................................................................................................................20

Stakeholder Mapping and Risk Management Strategies.........................................................................................20

Conclusion....................................................................................................................................................................21
Reference......................................................................................................................................................................22

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Introduction
This report evaluates the supply chain strategies of two global leaders in their respective
industries: Out of the three companies, Nestle is a global leader in the food and beverage
category, while Zara fits into fast fashion. The aim is to investigate selected supply chains of
these firms, such as sustainability, agility, and adaptiveness. Nestle is a giant in terms of the size
of its product portfolio and focuses on sustainability issues, but this has only multiplied
challenges for their global supply chain management (Mirzabeiki, He, and Sarpong, 2022).
Meanwhile, Zara is a peculiar supply chain design that pays so much attention to its success,
even though the fashion world can be hectic sometimes because of fast product turnover and
sensitivity. This evaluation focuses on the pertinent issues in their supply chains, such as
operational strategies, risk management, and stakeholder involvement, from which they
formulate strategic initiatives on what to improve.

Nestlé’s Global Supply Chain Overview

Description of Nestlé’s Supply Chain Structure
Nestlé’s position as one of the forerunners in the food and beverage sector is founded on its
global supply chain characterized by tremendous complexity (Μηνάς and Minas, 2019). Four
pillars that support Nestlé’s supply chain planning are quality, efficiency, responsiveness, and
sustainability, with nothing but perfection guaranteed from sourcing to delivery.

The first stage of the supply chain in Nestle is procurement, which covers more than 5 million
farmers worldwide (Kalyani & Shukla, 2022). It is an investment-oriented strategy that
encourages and provides evidence of responsible sourcing, showing commitment to the present
and tomorrow with producers or suppliers in mind. This purchase is essential for Nestlé as the
company has various product lines in several categories, from beverages to ready-made dishes
and pet care (Estrella & Fernando, 2022).

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 Figure 1.1

Source: (Pogacar et al., 2021)

Nestlé has adopted modern manufacturing technologies and linked supply chain systems to
pursue efficiency. These developments simplify the operation, making it more cost-effective and
less environmentally harmful. While Nestlé has a global manufacturing footprint, it aims to
remain flexible and adaptive in responding rapidly to market dynamics and evolving customer
requirements (Zhai, 2022).

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 Figure 1.2

Source: (Oktalia et al., 2022)

Sustainability is also seen in Nestlé’s supply chain approach. The firm is a pioneer in becoming a
deforestation-free supply chain and reducing its carbon footprint (Furumo and Lambin, 2021).
This is complemented by the adoption of renewable energy, demonstration of sustainability
production systems, and waste handling efforts. Nestlé further subscribes to ethics in labor
through its suppliers, indicating that it believes in a socially responsible supply chain.

The global supply chain of Nestlé also demonstrates a severe attitude toward producing quality
products that contribute to sustainability and efficiency while increasing the impact of
innovations and critical alliances (Djekic et al., 2021).

Operations and Value Chain Analysis

Value creation by operational excellence and capital stewardship has remained the foundation of
Nestlé’s operations, supporting sustainable progress (Samans and Nelson, 2022). By diversifying
its portfolio across geographies and product categories, the company can generate long-term
financial outcomes. Operational agility is critical to Nestle’s strategy that targets mid-single-digit
organic growth via being fast in innovation, market share gains, and portfolio management
efficiency. The functional paradigm focuses on reducing costs and prolonged improvement to
release resources for innovation, brand development, digitalization, and sustainability that add
value to shareholders’ interests and joint creation (Wagner and Kabalska, 2022). This operational
strategy is consistent with Nestlé’s vision to make helpful and responsible food for the good of
people with their pets and the earth because environmental concerns are shared by all
stakeholders. The practice of Nestlé is characterized by Responsible Brands, Advanced
Innovation, and Nutrition products that are affordable and accessible while addressing the needs
as part of an attempt to minimize their ecological footprint (Ruiz-Ruescas de Carlos, 2022).

Zara’s Fast Fashion Supply Chain Dynamics

Description of Zara’s Supply Chain Model
Vertical integration makes it possible to produce such spectacular rhythm and unequaled
hardness in the Zara supply chain. This integration incorporates all the stages from design to
distribution, including manufacture, warehousing, retailing, and logistics. It enables Zara to
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attain unique control over its operations, allowing the brand to replicate in-store available items
based on catwalk designs within two weeks (Sitaro, 2020). This is in sharp contradiction with the
industry norms, which often include similar procedures that once took place over six months.

Figure 1.3

Source: (Chan and Subiñas, 2019)

Zara’s model agility is further strengthened by its Just-in-Time (JIT) manufacturing strategy,
which provides an ample amount of load capacity for in-season adjustments and a flexible,
responsive production line. This approach encourages new clothing batch production and supply
to the entire global network of Zara stores twice weekly with fresh fashion trends within most
premises.

At the core of this model’s success is its link between Zara's business strategy and operational
processes, highlighting lean inventory management. Not only does Zara reduce the excess
inventory, but also, by producing in small batches and sustaining a rhythm of regular deliveries,
it creates an illusion that what they manufacture is limited (Schio, 2020). Therefore, Such an
approach allows the company to sell a higher proportion of its products at total prices than the
industry average, thereby minimizing markdowns.

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 Figure 1.4

Source: (Singh, 2020)

Zara’s distribution network is also stable, based on a centralized order fulfillment practice that
creates an efficient and integrated flow of items from design to delivery (Forsberg and Alamy,
2023). Precision in logistics brings fast restocking of stores, helping maintain the dynamism that
responds to consumers’ varying fashion and tendencies.

Operations Strategy in Fast Fashion

The data-driven approach is a powerful rival of Zara’s operations strategy in the fast fashion
market, allowing it to introduce new trends regularly across its stores worldwide (Quan and
Hien, 2023). This approach is based on Zara’s use of real-time data analytics to identify customer
preferences and track the movement of inventory. These data are collected through particular
RFID codes attached to each garment, it leads zara about product monitoring until its sale for the
fast replenishment decisions and design amendment as per reports from customers (Vancouver,
2022).

Its supply chain is also quick and agile; it can go from concept to store in a few weeks. That is
why Zara’s agility can be attributed to its vertically integrated structure enabling the firm to
regulate manufacturing procedures and speedily adapt according to market demands. With twice-

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weekly inventory updates that are unique for each store’s sales data, Zara brings its offers
substantially closer to what people like buying (Aggarwal and More, 2020).

Figure 1.5

Source: (Chunling, 2020)

Zara’s strategy also involves ensuring that inventory is lean, such as overstock, which allows the
retailer to operate with a high turnover rate supported by efficient logistics and a centralized
distribution system (Kondo and Vicente, 2023). Although local manufacturing leads to higher
production costs, the company's operational efficiency compensates for these and allows for
remaining profitable.

Both supply chain management and customer experience integration play a crucial role in
digitalization, such as click-and-collect services online. Zara’s agile SCP traced back to
technological innovations, enables a ‘hyper-local’ approach to inventory management that
ensures products meet each store's unique tastes and preferences.

Comparative Supply Chain and Operations Analysis

Comparative Analysis of Upstream Processes
Nestle’s supply chain has a highly integrated relationship with its global network of suppliers,
emphasizing sustainable and responsible sourcing. They work with more than 5 million farmers,

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concentrating on quality and sustainable acquisition of raw materials (Varchenko et al., 2020).
Nestlé goes into great detail as they partner with other organizations and non-profits to make new
processes while auditing their supply chain performance against the shared value creation for
society alongside shareholders' goals.

However, according to its fast-fashion model, Zara's supply chain is based on speed and
flexibility. Zara has changed the retail landscape by owning its entire supply chain to produce
and distribute things quickly, often from design to store, in just four weeks. This vertical
integration allows Zara to react rapidly to market trends and customer's needs, maintaining a
constant flow of the latest fashion styles. Zara’s model creates a high level of customization, and
employing scale economies enables a substantial increase in profitability (Wen, Choi and Chung,
2019). Additionally, Zara’s application of JIT manufacturing concepts associated with lean
production results in a lower level and cost of inventory to manufacture products strictly on
demand.

Nestlé and Zara have streamlined their supply chains based on each company's unique needs.
Both have evolved a supply chain strategy supporting their business objectives, whether Nestle’s
emphasis on long-term sustainability or Zara’s focus on rapidly changing fashion trends.

Compared to the more conventional and sustainability-based approach of Nestlé, Zara's supply
chain operation is fast and efficient; these contrasting approaches are typical among leading
global firms.

In-depth Operations Analysis

Nestlé’s operations are diverse, covering food and beverage products to pet care nutrition and
health sciences professional services (Chung et al., 2020). They all generate revenue for Nestlé,
reflecting on its expansive operating arena. The company emphasizes quality and sustainability
across all product lines, from Nestlé Professional Services to the food industry to its Health
Science division’s specialized products. The company’s operations are envisioned to provide
high-quality, healthy, nutritious food items that help meet many consumers ‘needs.

On the contrary, Zara has extreme quickness and mobility as a core of its fast fashion structure.
The brand has an elaborate and exclusive system whereby it ships the most recent fashions to its
outlets within two weeks faster than competitors in this sector. Zara’s integrated approach is also

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in design and retail, where changes are made during fashion season according to style preference
or trend-based market demand. This is done by setting aside a large portion of production
capacity for seasonal adjustments. Zara’s operations strategy also uses separate production lines
for males, females, and children to make quick reacting points out of market shifts (Cui and Fan,
2021).

The operational agility of Zara is also reflected in the latter’s distribution strategy, which entails
frequent and fast deliveries to ensure the timeliness of the collections. Unlike the traditional
forms of advertisement, Zara’s marketing strategy is very dynamic because it does not focus on
how people allocate resources to store locations and window designs that can present brand
appeal.

Downstream Supply Chain Mechanisms

The examples of Nestlé and Zara clearly reflect that the downstream part of their supply chains is
designed to satisfy separate market requirements.

However, the core of Nestle’s downstream supply chain mechanism is centered on a variety of
products it offers worldwide that assures their quality and effectiveness regarding customers’
responsiveness and sustainability aspects. The type of their sourcing strategy is a high-quality
choice for the primary ones and control over suppliers’ quality standards. The variety of
sophisticated manufacturing technologies and streamlined supply chain management systems
also guarantee the effective manufacture of the firm’s products available to consumers promptly.
Moreover, Nestlé aims to minimize its environmental footprint by engaging in sustainable
production and environmentally responsible waste management.

Zara runs on a highly flexible model, often twice a week, ramping up the supply of clothes to
cope with rapidly changing fashions (Lee, 2023). This vertical integration system that monitors
every step of the supply chain from production up to retailing reduces inventory, improves the
quicker rate of manufacturing, and thus permits Zara to offer the latest successful trends
persistently. Their just-in-time manufacturing system is vital in their real-time demand and
fashion trends, allowing for the effortless production of small quantities of clothes. This system
needs much coordination among different sections in the supply chain and poses several
problems, such as pressure on suppliers to meet tight production schedules.

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Nestlé and Zara have fine-tuned their downstream supply chain strategies to align with their
goals—Nestle is focused on quality in its highly diverse product line. At the same time, the fast
fashion industry dictates Zara’s speed and flexibility.

Theoretical Frameworks Application

Integrating theoretical frameworks in supply chain management dramatically impacts the
strategies companies such as Nestlé and Zara use. Nestlé's supply chain strategy is built around
four key pillars: quality, efficiency, responsiveness, and sustainability (McGrath et al., 2021).
This method ensures that the supplier has no other products and ingredients but those of quality
standards well manufactured with trust. Nestlé also deliberates on the application of modern
manufacturing technologies and integrated supply chain systems in managing its operations
productively but cost effectively with conservation principles.

In contrast, Zara imitates a model of fast fashion whose traits go against the grain with seasonal
one. This model is referred to as vertical integration, in which the firm owns and manages all
aspects of its supply chain (Alfaro et al., 2019). This ranges from the process to finished products
that enable Zara move fast in adapting to current trends. Zara’s model allows efficient production
and delivery of new styles, due to a dynamic inventory according to consumer needs. Its agility
is also enhanced by its just-in-time production, implying reduced inventory cost and fast
adjustments to new fashion designs (Choi et al., 2023).

The two companies demonstrate how supply chain management frameworks can be tailored to
accommodate industry-specific requirements. This is another example that shows how various
theoretical models are used in SCM since Nestlé attaches importance to the quality and
sustainability, while Zara pursues speed responsiveness (Suhaimi, 2019).

Critical Evaluation of Supply Chain Performance

Efficiency, Agility, and Sustainability Factors
Nestlé’s supply chain can be characterized as sustainable, quality-oriented, effective, and
adaptive. In terms of suppliers, the international standards and regulations are followed as it
ensures that products and ingredients used bythe company should be sustainable. The application
of new technology in manufacturing and integrated supply chain models by Nestlé implies that
the company is looking to achieve higher efficiency for cost minimization. Further, the firm’s

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attempts are witnessed in its utilization of renewable resources and eco-friendly methods to
reduce environmental impacts.

Figure 1.6

Source: (Kazancoglu et al., 2022)

Simultaneously, agility and speed of Zara’s supply chain are crucial for its quick fashion model.
As a result, Zara has the high level of control over production processes necessary for its brands
to transition from developed sketch in stores within four weeks. The agilityis further reinforced
by Zara’s implementation of Just-in-Time manufacturing principles that reduce inventory costs
and ensure efficient use of resources. Zara has also made considerable progress towards
sustainability by instituting processes that are geared toward ensuring achievement of organic
materials, trying to minimize the effects of toxic substances, and ethical sourcing along its chain.

Both companies have tailored their supply chain strategies to meet their specific market needs: In
this domain, Nestle has a diverse product portfolio addressing sustainability and quality while
Zara plans to compete in the fast-fashion industry through speed and agility. Each of the above
approaches shows a deep appreciation for, and highlights, diversity in focus supply chain
strategies between efficiency, agility, and sustainability.

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Customer-Centric Approach in Supply Chain
The two companies, Nestlé and Zara, have opted for different methods of critical evaluation of
supply chain performance, especially from customer-oriented standards.

The significant problem that Nestle’s supply chain management addresses is centering on
customer demands. Unlike market research, BBNW strategy does not stop at consumer profiling
but goes further to include brand-specific identification. Nestle interacts very much with its
customers, which has been made far easier by social media. This partnership helps them to get
consumers’ feedback promptly and conveniently, an integral component of product
customization through consumer requirements. In addition, Nestle stresses ethical procurement
from various farmers, which helps it gain the trust of its customers and maintain loyalty. The
Nestlé supply chain also has partnerships, which is a cardinal approach that works with suppliers,
vendors, and farmers to deliver safe products of quality in an environmentally sustainable
manner.

Figure 1.7

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 Source: (Madhani, 2019)

In fact, Zara, too, uses the fast fashion model, albeit in a different context, to be customer-
centric. The approach taken by Zara involves a quick response to the latest fashion trends and
customers' needs. This is supported by their fast, aligned supply chain that enables them to shift
from design to the shelves quickly. One of the cornerstones of Zara’s customer-centric culture is
its adaptability and following consumer trends, ensuring that products always match current
buyer needs. The critical part performed by the effective distribution network, dynamic inventory
management system use as well as use of up-to-date data alongside consumer insights in keeping
pace with a constantly evolving fashion industry is vital.

This proves that although these firms are in two different fields, supply chains can easily be
restructured to meet the client’s needs as efficiently as possible. Nestle highlights customer
loyalty and responsible sourcing, Zara as one of the fastest responding fashion companies
focuses on speed.

Identification of Operational Issues

Challenges Faced by Nestlé and Zara
However, the core of Nestlé’s problems is food insecurity all over the world. This has been
further made worse by the continuously rising cost of raw materials, labor and resources leading
to an increasing retail price. It was called a freight train coming and hitting the company,
meaning it hit hard. Moreover, the COVID-19 pandemic provided extra difficulties in Nestle’s
supply chain that needed more managerial approach to handle such unseen tasks. To ensure
business continuity, the company focused on procurement, production and distribution that
required it to provide resources abroad and wealth depletion. As the CEO of Nestlé, Mark
Schneider pointed out that resilience and persistence in serving communities even amid such
challenges.

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 Figure 1.8

Source: (Nestle, 2023)

Regarding Zara, although their fast-fashion model do not indicate any specific operational
challenges in the search they are facing problems that can be associated with speed change and
quickness of decision processes from manufacturing to distribution level. Zara’s supply chain is
sensitive and the strategy should be flexible. With a global and interconnected supply chain, it
also has to trade in international markets that are volatile with frequent intervening shocks of
disruptions or demands.

Impact on Global Operations and Supply Chain

Second, Nestlé being the biggest food producer and distributor company is not free from
challenges that have hindered its operations across the world. However, the pandemic brought
interesting challenges that turned the spotlight on supply production and logistics. Supply chain
disruptions have resulted from pandemic Therefore, Nestle has been forced to change its patterns
of operation due to the continuity of vital food and beverages products. This kind of environment
may involve obtaining proactive measures to ensure worker’s health and safety, as well as
diverting the resources distribution towards fulfilling volatile demands.

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Besides, the firm has also struggled with issues related to global politics such as wars that
resulted in a shortage of goods on occasion resembling milk during World War I and II. Finally,
in 2022 the international sunflower oil deficit harmed Nestle’s supply chain forcing it to turn to
alternative oils for some products. In such cases, Nestlé shows its adaptability through active
actions that replace stability in a supply chain.

Figure 1.9

Source: (Xu et al., 2020)

Further, the company has extensive collaboration with diverse networks of suppliers – from
cocoa farmers to numerous ingredient suppliers crucial for processed food including palm oil and
dairy. This enterprise has commenced projects which are directly focused on the farmers in an
attempt to enhance quality of raw materials, while at the same time bettering their living
standards. This method encourages the continuity of demand, social accountability and
environmental sustainability.

These challenges and responses demonstrate how complex yet adaptive Nestlé’s global
operations and supply chain was across all its divisions, indicating that one should always
anticipate unpredictability.

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Strategic Recommendations for Enhancement
Nestlé: Improving Global Supply Chain Sustainability
To improve the sustainability of Nestlé’s global supply chain, several strategic recommendations
can be made based on their current supply chain strategy that focuses on quality, efficiency,
responsiveness, and sustainability.

 Enhancing Quality and Sustainability in Sourcing: Nestlé should remain committed to

working with suppliers, targeting quality products and components that are also
somewhat manufactured. This includes compliance with international standards and
regulations by suppliers.

 Investing in Modern Manufacturing Technologies: Introducing advanced

manufacturing technologies facilitates better efficiency and significant cost reduction.
This also involves incorporating supply chain systems that improve efficiency and reduce
environmental degradation.

 Focus on Renewable Energy and Sustainable Production: Nestlé should continue its
efforts to reduce pollution by using reusable energy. The impacts can be minimized by
recycling and adopting sustainable productive processes.

 Ethical Labor Practices and Socially Responsible Supply Chains: It is necessary to

ensure that suppliers meet ethical labor norms. This would improve the social
responsibility aspect of the supply chain.

 Regenerative Agriculture Initiatives: Scaling support towards regenerative agriculture

may be helpful. These include developing new varieties of low-carbon, disease and
drought-resistant plants that can reduce CO2 emissions as well as improve the
effectiveness of farming practices.

 Lowering Carbon Footprint in Logistics: Nestlé can focus more on the optimization of
transport modes with respect to policies regarding leaving empty vehicles, space sharing
among trucks, and the road-to-rail or sea switching. This approach would substantially
reduce the emissions.

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  Transparent Communication and Engagement with Stakeholders: Trustworthiness
entails open communication regarding sustainability initiatives and stakeholder
transparency.

Zara: Enhancing Responsiveness and Flexibility

To enhance Zara's responsiveness and flexibility in its supply chain, several strategies can be
adopted:

 In-House Manufacturing: Zara should promote and finance internal production

processes. Control and regulation are more possible in this system, minimizing the risks
of errors, delays, or even inefficiency.

 Just-in-Time (JIT) Production: The company can easily enable the shortened
turnaround time by adopting the JIT definition of production methods.

 Automating Production: The automation of production helps Zara produce its products
more efficiently and accurately, allowing the company to respond quickly

 Limited Production Runs: In the manufacture of several products, fulfillment may lead
to feelings of exclusiveness and urgency that make consumers buy.

 Rethinking the Returns Process: By modifying the return policy in favor of mindful
consumption, any financial cost associated with returns and too much waste can be
nullified.

 Supply Chain Diversification: Frogs can minimize the risk associated with dependency
on particular areas or suppliers through diversification.

 Enhancing Supply Chain Transparency: Higher supply chain transparency can build
customer trust and disclose improvement opportunities.

 Sustainability Initiatives: Adopting greener practices could improve brand image and
attract the attention of eco-friendly consumers.

Application of Project Management Tools

Gantt Chart
Task Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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 Market Analysis - - - - - - - - - - -
Strategy Development - - - -
Stakeholder Meeting - - - - - -
Implementation Plan - - - - - - - - - -
Execution
Monitoring & Control

Stakeholder Mapping and Risk Management Strategies

Stakeholder mapping and risk management are integral components of project management,
guaranteeing success for any project.

Stakeholder Mapping: It entails identifying all stakeholders within a project and their power
and interests. So, stakeholders should be classified by their power, interest, and impact on the
project. Proper mapping of stakeholders enables the communication and engagement with these
individuals effectively so their interests are met, which is crucial for successful project
implementation.

Risk Management Strategies: Risk management systematically identifies, assesses, and

responds to possible threats when implementing projects. It entails increasing the probability and
results of favorable events while reducing the likelihood and effects of undesirable ones. The
main stages are identifying risks, qualitative and quantitative risk analysis (qualitatively and
quantifiably), prioritization by the importance of conducting response strategies, and continuous
monitoring. The proactive measure eliminates potential problems that may affect a project's
scope, cost, and time.

The mapping of stakeholders and risk management is needed to keep the project aligned with
business goals, resource optimization, and adaptability in case of uncertainty.

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Conclusion
In this paper, the supply chain and operational strategies of Nestlé and Zara are critically
analyzed, revealing weak points where improvements can be made. For Nestlé,
recommendations provided tips for enhancing the sustainability of the global supply chain, such
as sustainable sourcing, investments into modern manufacturing technologies, and ethical labor
practices. For Zara, there had been a direct focus on improving responsiveness and flexibility by
applying strategies such as in-house manufacturing, JIT production, and utilizing AI for
increased operational efficiency. Moreover, project management tools such as the Triple
Constraints for project planning, stakeholder mapping, and risk management strategies were
investigated to supplement these improvements. The implications of these recommendations are
significant: For Nestlé, they propose a more environmentally sustainable and socially responsible
supply chain, while for Zara, the suggested changes are meant to strengthen its market position
by increasing agility and fostering customer responsiveness. Therefore, the long-term
sustainability and overall competitive advantage of both companies will likely be affected by
each company’s adaptation to these strategies.

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