OIM 210 Lecture 5: Lecture 5 OIM
7 Feb 2017
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Companies can compete based on one of two approaches. The name of the mother company is inditex. Largest pure-play fashion (only fashion) retailer on the planet. They took over the market and won over the previously top fashion clothing retailer in the world: gap, inc. Now gab"s former ceo has resuscitated j. crew with some hard-won knowledge: bigger isn"t always better. Sales numbers declined and declined month after month for 29 consecutive months. He was running the disney retail, but wrong guy again. His sales numbers did not decline for 29 consecutive months but in 24 months they declined 18 months, so every 3 months there was a decline and then stability. Raise capital by issuing more shares or issuing debt. Debt is an obligation that you want to pay back with interest rate and when you lose, your interest is going to be high.
