Strategic Management and Zara

ara * 1. ZARA: Fast Fashion Case Study M anagement I nformation S ystems January 26, 2010 Presented By: Group- 1 * 2. Agenda About Company Information Systems Analysis & Conclusion * 3. About the Company * 4. ZARA Zara, the most profitable brand of Inditex SA the Spanish clothing retail group, opened its first store in 1975 in La Coruña, Spain operations into 45 countries with 531 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa. Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results * 5. FAST FASHION * 6. ZARA- Goals These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors. * 7. ZARA- Business Model Zara’s business model can be broken down into three basic components: Concept: To maintain design, production, and distribution processes that will enable Zara to respond quickly to shifts in consumer demands. Capabilities: It maintains tight control over their production processes keeping design and manufacturing in-house or with some strategic partnerships located nearby . They have strategic agreements with local manufacturers that ensure timely delivery and service. Thus, maintaining the flexibility necessary to design and produce over 12000 new items annually. Value drivers : for Zara are both tangible and intangible in the benefits that are returned to all stakeholders. Tangibly Inditex, the parent company of Zara, has 11.02% net margin on operations. Intangibly, customer loyalty and brand recognition have provided significant value to Zara. * 8. Information Technology @Zara DBMS A DBMS is a set of software programs that controls the organization, storage, management, and retrieval of data in a database. E.g MySQL , Oracle ERP ERP