1.

Due to unavailability of own manufacturing facilities scope for Vertical integration up to

ZARAs level is not possible
2. Due to high dependency on Suppliers at many stages, control over scheduling and capacity
building is not possible
3. Risks of increased costs attributed to air freight charges leads to reduced margins and less
profits
4. Currently in different stages of Supply Chain for other companies, layers of bureaucracy exist
which act as a hindrance to information flow
5. Other companies have franchises across the market due to which information flow cannot
be improved vis-a-vis to Zaras system
6. Lack of flexibility in other companies does not allow retailers to change their orders by 20%