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Zara's approach to waste management is quite innovative compared to other business frameworks. They have a repair and reuse program where customers can drop off used garments in store. This not only reduces waste but also promotes sustainability. They are also planning to use 50% recycled material in all their new products after 2022. This is a significant step towards waste reduction and sustainability. On the other hand, many other business frameworks are still struggling to incorporate waste management strategies into their operations. They are often more focused on profit margins and growth, rather than sustainability and waste reduction.
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Why do so many perfectly managed companies fail? Inspired by the seminal work of author Clayton Christensen, this deck provides the solutions to the “...
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First, Zara will need to brainstorm how to eliminate or reverse its waste problem. It already has a repair and reuse program to drop off used garments in store, so it can dedicate more budget to grow this initiative, and maybe even modify its e-commerce storefront to offer resale directly. For delivery, it could adopt AI to calculate more accurate product volumes. For product, now that it will aim for 50% recycled material in all its new products after 2022, it may need to adapt and modify its business model to charge more for a higher margin.
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