Preview

Zara: It for Changing Trends

Good Essays
Open Document
Open Document
775 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Zara: It for Changing Trends
The Harvard Business School case of one of the largest retails and clothe lines in the world, analyses and elaborates on how this Coruna based giant developed into what it is nowadays, and explains in detail how different parts of the organization work vertically to form the well established business they are. The case starts off with a brief discussion that Inditex Chief of Information Technology, Xan Salgado, and his long time friend and professional subordinate in the IT department, Bruno Sanchez, are having regarding the POS system, and if they should update it or leave it as it is. Salgado argues that they ought to implement a newer system, considering that the one they currently have is antiquated and may fail in the future, also acknowledging the fact that their supplier no longer supports that DOS system. Sanchez, on the other hand, explains that the system they currently use is 99% fail proof, and that there is no reason whatsoever to invest and develop something that may hurt the so perfectly working system used at the moment.

The case later moves on to explain how Zara came to be what it is, and how they carried out their business model from its beginnings. The company Zara was founded in 1975 by its current major stockholder, Armancio Ortega, and was aimed at women, men, and children. It is affiliated to other clothing brands including Massimo Dutti, Pull and Bear, Bershka, Stradivarius, and Oysho, all part of the Infitex corporation. From its starting roots, Zara has managed to set themselves apart from their competition, by believing strongly in their employees, and having a strong, decentralized hierarchy of power. Store managers have a lot more influence compared to their competitor’s counterparts, in the sense that they control more the way their store works and what type of merchandise they wish to exhibit. Zara focuses more on the layout and location of their stores, instead of other important factors such as marketing and publicity where it

You May Also Find These Documents Helpful

  • Better Essays

    Rainsford Alternate Ending

    • 1721 Words
    • 7 Pages

    “One of us is to furnish a repast for the hounds. The other will sleep in the excellent bed. On guard Rainsford.” When Rainsford awoke from his slumber, he reluctantly climbed out of the extravagant bed. He could see out the window that the sun was barely up.…

    • 1721 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Zara Case Write-Up

    • 1277 Words
    • 6 Pages

    The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of the nature of its DCs and complication of online selling. Also, Zara has clear positioning that its clothes are always in style and not for durable use. Third, Zara has lots of stores and large scales, which has promising financial achievements as well as potential growth point. In general, Zara has a business model of preferences for speed and decentralized decision making.…

    • 1277 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Week 5 case team 1 rev 1

    • 1622 Words
    • 5 Pages

    It was in 1975, almost forty years ago when Zara, a small unknown Spanish apparel firm began its operations in La Coruna, a small seaside town located along the northwest Spanish coastline, approximately 300 miles from Madrid. Now the once small local apparel manufacturer has evolved into a flagship international group (The Inditex Group), the parent of eight global retail chains, including Zara, Bershka, Massimo, Dutti, Stradivarius, and Oysho with a combined annual revenue of close to $21 billion in 2012, making its founder, Amancio Artego, one of the world’s wealthiest individuals.…

    • 1622 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    zara case study

    • 670 Words
    • 3 Pages

    Zara has a highly flexible tool for producing close to its customers and an efficient and quick chain information system. Zara designers are constantly listening to advice and comments from store managers. During their regular contact, the store managers give suggestions, advice and criticisms on products and on the choice that should be taken thanks to the retail experiences with customers. .It allows to Zara to be the first company to offer the new fashion garments, Zara create a sort of rareness. To control his production, Zara produces a lot in Spain with exclusive suppliers, it give to Zara a great reactivity and a good control.…

    • 670 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Zara Swop

    • 474 Words
    • 2 Pages

    Zara has established itself successfully over the course of five years since the opening of its first retail store in Spain in 1975. We must now consider further opportunities of growth with a sole purpose of gaining further international recognition in order to maintain our mark as a top leader in the retail industry amidst the competition of the fashion industry.…

    • 474 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Appendicitis Dichotomy

    • 390 Words
    • 2 Pages

    The discussion regarding the pathophysiology of sepsis should include the pathophysiology of disease conduction that led to sepsis. In this case, the disease started from appendicitis. Therefore, the pathophysiology of complicated appendicitis will be discussed first. Then, secondary peritonitis and sepsis will follow.…

    • 390 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    become the sole or majority shareholder. However, for small or culturally different markets, itextended franchising agreements to leading local retail companies. For countries with largebarriers to entry and an appealing customer base, Inditex created joint ventures with thepossibility of later buying out its partner. Despite the different approaches used to enter intothe international market, Zara has shown that there is no impediment to sharing a singlefashion culture.Zara, a key subsidiary of its Spain-based parent company Inditex, was established in Galicia,Spain in 1975. The brand provides an alternative outlook to the fashion retail business model byrejecting media advertising and blow-out sales, and maintaining the bulk of its productionprocess in-house rather than outsourcing to low-cost countries. Despite the seemingly counter-intuitive business model Zara operates, it has become one of the leading fashion retailers in theworld.…

    • 3317 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    The Rainmaker

    • 506 Words
    • 3 Pages

    Enticing readers and basically giving people something good to read, John Grisham is an established star in literature. What makes his books so great is that they are so realistic. He applies his personal law and trial knowledge into the books he writes. Put together with creative story telling, his makes his novels hard to put down.…

    • 506 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Zara Case Study

    • 502 Words
    • 3 Pages

    Zara strategic model began to evolve as they expanded to overseas markets, they began to invest in their manufacturing logistics, and IT, which included a JIT manufacturing system, a 130,000 square-meter warehouse close to the corporate headquarters, and an advanced communication system to connect headquarters and supply, production and sale locations. Zara created a vertically integrated system that minimized distance and time between design, sourcing/ manufacturing, distribution, retailing, and finally back to design. This decrease in lead-times is made possible because the company manages all of its design, warehousing, distribution, and logistics. This highly integrated system allowed Zara to follow the trends and sell garments that people wanted at that moment, without the use of advertisements. Zara allowed its employees to have a lot of control and autonomy over their work. They were the ones who designed and decided what clothes should be in stores.…

    • 502 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    In This case we see the typical problem which affect big Companies : the conflict between old style and new school of thought. We analyze Zara’s information Technology strategies and the diatribe between Salgado, The Head of the Department and Sanchez , his assistant,s concern upgrading the operating system and the implementation of a new IT system to fulfill the needs of a fast growing retail chain. Despite the fact that Zara is over performing in their core business and that they are not showing big problems inside their structure, this shouldn’t be seen as a pretense to dodge updating the Software. Here we see Sanchez’s sight who confide in simplicity due to the success achieved in the past by the business. Although Leonardo Da Vinci as well quoted saying that “ Simplicity is the ultimate Sophistication”, and he made the most influential discoveries on earth, in this story there may be some substance to Salgado’s argument regarding the upgrade of their POS terminal. Before discussing the why of this decision, is important to understand their approach to Information Technology Management. One of the most crucial aspects to ZARA’s I.T. Management was their ‘D.I.Y.’(Do it yourself) method, pictured through the creation of their own applications by the IS Department, a software highly reliable and with low cost maintenance. The benefit of creating tailor-made applications is that all of the functions are very specific to the organization so they can easily respond to fast changing customer demand. I.T. department were likely to familiarize themselves with the processes in a rapid manner and the lack of a Chief Information Officer and no formal budget was justified by the fact that everything was created internally. Essentially this strategy, in addition to ZARA’s number one pillar of no advertising was very cost effective. The question…

    • 2565 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Zara is a flagship brand of the Spanish retail group, Inditex group. Inditex is the world's largest fashion group, which owns other fashion brands such as Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Lefties and Uterqüe. It was founded in 1975 by Amancio Ortega, when he decided to expand his factory in Arteixo by opening a store in La Coruña. Zara has expanded since and currently operates a total of 1,671 stores in continents Spain.…

    • 1642 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Case Zara Brand

    • 1339 Words
    • 6 Pages

    Zara is a chain of stores Belonging to the Spanish fashion group INDITEX founded by Amancio Ortega Gaona. It is the company 's flagship chain and is represented in Europe, America, Africa and Asia with 1412 stores in 69 countries, 500 of them in Spain. During 2007 it opened 560 stores across the group.…

    • 1339 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Zara Customer Care

    • 3322 Words
    • 14 Pages

    This report is about ZARA which is a global brand of clothing owned by the Inditex Group. It is the world's third-clothing retailer, one of the world's four major fashion chain (the other three are the United States of casual fashion giant GAP, the Swedish fashion giant H & M, German parity giant clothing chain C & A), has more than 2,000 stores in 70 countries around the world. It was established in 1975 by Spanish fashion designer and tycoon Amancio Ortega. The first store opened in Galicia, Spain, where it is now headquartered. The company is very unusual in the fashion retail world and incorporates many pioneering concepts. The company takes just two weeks to get its products on its store shelves after designing them, compared with six months for its competitors. It does not advertise, preferring instead to use money on opening new stores. Zara also owns and controls every stage of production from design, manufacture, supply and sales. A Louis Vuitton spokesperson described it as “possibly the most innovative and devastating retailer in the world”. (Baidu.com 22, June, 2012)…

    • 3322 Words
    • 14 Pages
    Powerful Essays
  • Better Essays

    A Spanish brand of clothing founded by the visionary Amancio Ortega Gaona and Rosalia Mera in Artexio, Galicia. ZARA was founded in the year 1975. Is one of major selling brand of the biggest fashion retailer "INDITEX".…

    • 1051 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Zara

    • 3897 Words
    • 12 Pages

    Zara is a Spanish brand of clothing founded by Amancio Ortega Gaona and Rosalia Mera in Artexio, Galicia. Zara was founded in the year 1975. It is one of the major selling brands of one of the biggest fashion retailer "INDITEX". Zara is now available in 88 countries with total of 2,026 stores worldwide.…

    • 3897 Words
    • 12 Pages
    Best Essays

Related Topics