Management of Spanish Retailer Zara – Essay Sample Fashion is a fluid concept. To understand the concepts of management in fashion retail‚ it is vital to understand the multifaceted nature of business. For retailers‚ there is more to the process than sales and high fashion. Those who seek a good example of the benefits of an efficient supply chain can find an excellent example in the Zara Corporation. The concept of fast fashion has been made possible because of technology and an understanding of
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1 Zara ’s Business Model and Competitive Analysis Zara‚ the most profitable brand of Inditex SA‚ the Spanish clothing retail group‚ opened its first store in 1975 in La Coruña‚ Spain; a city which eventually became the central headquarters for Zara ’s global operations. Since then they have expanded 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. Throughout this expansion Zara has
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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
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globally? Zara has several advantages when it expands its operation in global markets. Firstly‚ Zara has always promoted its products via its stores and it had its own centralized distribution center which will translate to low advertising and logistics costs when it enters new markets. As opposed to its competitors who would invest heavily on advertising and organize a distribution system. Secondly‚ apparel retailing was witnessing increasing concentration which would benefit Zara when it entered
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benefited individual brands or created a lack of a single corporate vision. * Zara erosion- Revenue forecasts indicate Zara market share was eroding 3 percent per year despite being the principal driver of growth. * Strong Vertical Integration- Inditex benefited from strong control of customer orders up through the purchasing‚ designing and building of materials. * Diseconomies of Scale- Speculators do not feel Zara can expand further using the same distribution system Significant Factors:
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Summary of Zara Zara specializes in inexpensive fashions for women and men between the ages of 16 and 35. In keeping with the spirit of that demographic‚ Zara moves quickly. Like many apparel retailers‚ it has two seasons—fall/winter and spring/summer—but selections change frequently within those periods. Items spend no more than two weeks on the shelf before making way for new merchandise‚ and stores are replenished twice a week. With annual growth of around 20 percent in both sales and number
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Critically evaluate the comparative transnational effectiveness of Benetton and Zara Zara and Benetton are two of the most acknowledged clothing companies in the fast fashion industry. The different international business strategies they adopt result in different transnational effectiveness. To begin with‚ this essay will give a brief overview of the motivation‚ means and mentality of these two companies‚ and then compare how they sustain their competitive advantages through integration‚ responsiveness
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Zara Boutique Clothing Store (as subsidiary of Index SA) • Very strong link between store managers and central design team • Real time sales tracking through the use of electronic equipment- helps to identify trends • Trends translated to products within 15 days (catch the fashion while is still hot‚ thus responding quick to the fast changing taste of young urban consumers). Designs delivered quickly to stores • Continuous analysis of value chain and seeks to achieve control on as many sections
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Zara owns and manages numerous resources that can be categorized as tangible‚ intangible or organizational capabilities. The interactions between tangible and intangible resources help create organizational capabilities that provide value to the end consumer. Zara has a large variety of tangible resources due to its international expansion and vertical integration. Zara has 507 stores around the world with a total selling area of 488‚400 m² and 1‚050 million of Inditex ’s capital invested
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DIS 620 (TEI 2014) Management Information Systems (Oct 18‚2014) Case 1: Zara‚ Netflix and Amazon Business Systems by Efstratiou Kostandinos 1. ZARA a. General. Zara is one of the greatest global fashion companies belonging to the Spanish retail group‚ Inditex SA. Its founder Amancio Ortega Gaona opened its first store in A Coruña (Spain) in 1975. During the 1980s Ortega started changing the design and distribution process to react to new trends quicker. In 1988 the company started its
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