Zara Case Write-Up Zara was founded in 1963‚ by Amancio Ortega Goana. He started the company because he wanted to improve the manufacturing and retail aspects of fashion and to reduce the cost of the apparel chain. He opened the first stores in Spain‚ and slowly over the decades started to expand to different countries. Zara headquarters is in Arteixo‚ Spain‚ with their distribution center close by. Inditex‚ the holding company that owns Zara‚ has a business model‚ which states‚ “Global specialty
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ZARA Income Statement Period Ending: 2012 31/12 2011 31/12 2010 31/12 2009 31/12 Total Revenue 82.98 78.19 89.69 76.7 Revenue 82.98 78.19 89.69 76.7 Other Revenue‚ Total - - - - Cost of Revenue‚ Total 60.29 56.72 59.02 52 Gross Profit 22.69 21.47 30.67 24.7 Total Operating Expenses 77.61 73.35 74.12 63.51 Selling/General/Admin. Expenses‚ Total 3.69 3.24 3.96 3.56 Research & Development - - - - Depreciation / Amortization 13.63 13.38 11.14 7
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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
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ZARA INTERNAL ANALYSIS. Zara’s core competence is recognizing and assimilating the continuous changes in fashion. They’re very good at this because there’s a very good communication within the company. Store managers send information about the customer demands and new fashion trends to the headquarters on a daily basis. So if there’s a new trend‚ Zara is able to adapt their products or design new articles immediately. If a design doesn’t sell within a week‚ it’s withdrawn from the shops‚ further
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Part 1: Executive Summary The current POS system has shown to be successful for Zara‚ however‚ Zara’s IT strategy does not reflect the strategic approach its supply chain has. As Zara’s supply chain is designed to be ahead of its competitors‚ its IT system has fallen behind the crowd. Zara has continued to upgrade its PDA devices but not its technological infrastructure in which it has built its success on. As the head of IT for Inditex I need your‚ Bruno Sanchez’s‚ serious consideration as Inditex’s
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Strategy‚ Organization ZARA perspective To what extent is the Zara production model relevant for other industries? The Zara’s production model is relevant to other industries because it is out of the regular productions frames. It is focused on the product and the customer; it doesn’t separate one from other‚ for Zara the homework is not done until the costumer owns its product. Buying in Zara is taking a chance‚ Zara knows its market very well and knowing this they developed strategy that includes
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Works on the Consumers Introduction A brand is a name that influences buyers. This definition captures the essence of a brand: a name with power to influence buyers. But‚ what really is a brand? People around the globe are now living in a ‘branded’ world. This might sound obscene but in most cases‚ it is clearly evident. Most consumers prefer to buy a product with a well-known or a popular brand than buying an unpopular one. Some buy products with brands that connote ‘extravagance’ or capacity
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The case of Zara – The Postponement strategy I) Introduction In order to compete in the world of rising globalization and shortening of product life cycle nowadays‚ firms have to deal with the demand for increasing product variety to meet the diverse needs of customers. Mass customization has become a requirement for many businesses especially in the dynamic‚ fast-changing industries. However‚ the more product varieties‚ the more difficult it is to forecast demand‚ control inventory and manufacture
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Final Project: Zara Logistics Introduction Zara is a Spanish-based retail chain owned by the group Inditex who has taken a new approach in the industry and has completely changed the fashion world. Zara specializes in inexpensive fashions for women and men between the ages of 16 and 35. Zara has created a competitive advantage: they own their in-house production and they have an impressive logistic strategy. By owning its in-house production‚ Zara is able to be flexible in the variety‚ amount
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Assessment Task 4 BSBRSK501A Manage risk Prompt questions 1. What are three ways that research can be conducted for risk-related issues‚ and for each way‚ briefly describe how it may be done. Qualitative analysis may be useful as an initial screening to identify if further analyse of risk is required‚ when the analysis is appropriate for decisions‚ when numerical data or resources are inadequate. Semi-quantitative analysis sets values to the risks in order to produce a more
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