ZARA IT for Fast Fashion
ZARA IT for Fast Fashion ( Case Analysis)
1) Please describe three most important competitive advantages of ZARA (Inditex) over its main competitor. How sustainable is this advantage?
2) Assume that ZARA is considering to enter the US market. Please recommend actions for ZARA. Please make clear assumptions when necessary.
After reading and analyzing the Zara case we came several conclusions when it comes to Zara’s competitive advantage over its competitors. We understood that Zara is using totally distinctive business model compared to other more traditional fashion retailers. In our opinion there are three most important advantages that Zara has over its competitors. These are : IT Software/internal information flow, Factory locations/Geographic placement, Just in Time approach. We believe that these three factor are the main determinants when it comes to Zara’s strong current position on the market. Below I will go more in detail and explain every single factor individually.
Software/internal information flow
First factor which gives Zara competitive advantage according to me is their software. The fact that all the software (PDA) used currently by Zara is developed by them gives them huge competitive advantage. Having the software developed internally makes it much more efficient and user friendly because it is compatible with the companies daily operations. Everything starting from the operational procedures, performance measures, and even office and store layouts are designed to make information flow simple. Making the internal information flow faster and more efficient is one of the key success factors for Inditex.
The fact that all the stores are directly connected to the main system which in collects all the data is a great way for analyzing things that are going on in different stores. But all in all we would say that this factor is not a sustainable advantage. Everyone can copy the system or even create their own. The issue might
1) Please describe three most important competitive advantages of ZARA (Inditex) over its main competitor. How sustainable is this advantage?
2) Assume that ZARA is considering to enter the US market. Please recommend actions for ZARA. Please make clear assumptions when necessary.
After reading and analyzing the Zara case we came several conclusions when it comes to Zara’s competitive advantage over its competitors. We understood that Zara is using totally distinctive business model compared to other more traditional fashion retailers. In our opinion there are three most important advantages that Zara has over its competitors. These are : IT Software/internal information flow, Factory locations/Geographic placement, Just in Time approach. We believe that these three factor are the main determinants when it comes to Zara’s strong current position on the market. Below I will go more in detail and explain every single factor individually.
Software/internal information flow
First factor which gives Zara competitive advantage according to me is their software. The fact that all the software (PDA) used currently by Zara is developed by them gives them huge competitive advantage. Having the software developed internally makes it much more efficient and user friendly because it is compatible with the companies daily operations. Everything starting from the operational procedures, performance measures, and even office and store layouts are designed to make information flow simple. Making the internal information flow faster and more efficient is one of the key success factors for Inditex.
The fact that all the stores are directly connected to the main system which in collects all the data is a great way for analyzing things that are going on in different stores. But all in all we would say that this factor is not a sustainable advantage. Everyone can copy the system or even create their own. The issue might