Zara Fast Fashion Case Study - Solutions
Zara – Solutions:
Zara is a world famous Retail Chain based in Spain and is extremely successful in their supply chain.
Questions:
1. What is Zara’s Business Model and its unique Supply Chain strategy?
Zara’s business model can be broken down into three basic components: concept, capabilities, and value drivers.
Concept is to maintain design, production, and distribution processes that will enable Zara to respond quickly to shifts in consumer demands.
Capabilities: Zara maintains tight control over their production processes keeping design and manufacturing in-house. Zara maintains 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.
The successful implementation of Zara’s business model provides great value to stakeholders and differentiates their business from their peers.
Three goals for operations: develop a system that requires short lead times, decrease quantities produced to decrease inventory risk, and increase the number of available styles and/or choice.
Others:
Zara has developed a business model based on short deadlines, decrease quantities and a great choice of style and clothes.
The infrastructure: Zara only works with stores. They don’t make merchandising in internet.
The company succeeds to make moderate prices with a large choice of new clothes every time.
The success of ZARA is based on two principals: follow the trend to be able to sell garments at a moment where people want this kind of style, without using any advertisements as the concurrence does.
They don’t want to convince people to buy their clothes but give the public what they desire at the moment.
Secondly, the trust that had been given to employees allowed the company to delegate.
They decide what clothes should be in stores, the designed the garments by pairs for a specific collection.
Their role is to create
Zara is a world famous Retail Chain based in Spain and is extremely successful in their supply chain.
Questions:
1. What is Zara’s Business Model and its unique Supply Chain strategy?
Zara’s business model can be broken down into three basic components: concept, capabilities, and value drivers.
Concept is to maintain design, production, and distribution processes that will enable Zara to respond quickly to shifts in consumer demands.
Capabilities: Zara maintains tight control over their production processes keeping design and manufacturing in-house. Zara maintains 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.
The successful implementation of Zara’s business model provides great value to stakeholders and differentiates their business from their peers.
Three goals for operations: develop a system that requires short lead times, decrease quantities produced to decrease inventory risk, and increase the number of available styles and/or choice.
Others:
Zara has developed a business model based on short deadlines, decrease quantities and a great choice of style and clothes.
The infrastructure: Zara only works with stores. They don’t make merchandising in internet.
The company succeeds to make moderate prices with a large choice of new clothes every time.
The success of ZARA is based on two principals: follow the trend to be able to sell garments at a moment where people want this kind of style, without using any advertisements as the concurrence does.
They don’t want to convince people to buy their clothes but give the public what they desire at the moment.
Secondly, the trust that had been given to employees allowed the company to delegate.
They decide what clothes should be in stores, the designed the garments by pairs for a specific collection.
Their role is to create