Gallaugher A look inside the innovative techniques of one of the largest fashion retailers 2012 Joshua Crocker MGMT 3030 12/19/2012 ZARA By John M. Gallaugher A look inside the innovative techniques of one of the largest fashion retailers 2012 Joshua Crocker MGMT 3030 12/19/2012 A Goldman analyst once described this fashion retailer as “Armani at moderate prices” and another suggested that fashions were “Banana Republic” while prices were “Old Navy” (Folpe‚ 2000). Based on
Premium Fashion Retailing Fast fashion
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
Premium Subsidiary Fashion Fast fashion
and H&M are Zara’s main competitors that are neither in Hong Kong nor in China yet. Zara started up its first stores in China and has many stores opened in different upscale locations in the main cities. Zara has become a very well-liked rapid fashion product in China. With the aggressive expansion of Zara‚ there are 91 Zara’s outlets in China nowadays (EFU‚ n.d.). b. Zara Sales Increases Despite Economy Crisis Although recession occurred in the year 2008 and 2009‚ it did not affect Zara’s
Premium Retailing Social network service Online shopping
Enterprises Customers Suppliers Production Enterprises ZARA is the flagship brand under the Indetex Group‚ which is known worldwide by its fast fashion products. Their core competitive strategy is developing the new product and getting it to stores within 15 days. The uniqueprocessing model ensures ZARA occupied the market advantage among the fashion industry. Subcontractors Although ZARA manufacture approximately half of its products in their own factories‚ they use subcontractors for all
Premium Fashion Fast fashion Liability
as the world’s biggest specialty retailer in the second quarter. But the lead may already have vanished. Image: epa/Corbis Based on first-quarter results‚ Zara International of Spain has closed the gap on Gap Inc.‚ becoming the world’s largest fashion retailer by revenue‚ the Daily Telegraph points out today. Inditex‚ Zara’s parent company‚ said first-quarter revenue rose 9 percent to 2.2 billion euros‚ or $3.46 billion at the time‚ while Gap’s sales drooped 10 percent to $3.38 billion in the
Premium Fashion Banana Republic Fast fashion
Please read the article: Zara: Fast fashion from savvy systems available for free at http://www.flatworldknowledge.com/pub/gallaugher/41128#pdf-7 This article makes up Chapter 1 of the free‚ open access book titled‚ Information Systems: A Manager’s Guide to Harnessing Technology‚ by John Gallaugher. Please ensure that you read the entire Chapter 1 of the book consisting of 3 parts (Part 1 Introduction; Part 2 Don’t Guess‚ Gather Data; and Part 3 Moving Forward). Now answer the questions below:
Premium Customer Fashion Fast fashion
Broad Differentiation Some important tactics necessary to gain and maintain perceived uniqueness: 1. Developing innovative products/services for broad range of customers Zara creates a “fast fashion” concept which getting designs to customers quickly. It has more style than Gap‚ faster growth than Target‚ and logistical expertise rivaling Wal-Mart. 2. Significant investments in Marketing‚ Technology Development‚ Procurement & Customer Service ZARA takes just two weeks to get a new design
Premium Fashion Organic farming Brand
northwest of Spain. Currently‚ Zara has a total of 2‚000 stores in major cities around 88 different countries. They are acclaimed as a fast fashion company in the industry with more than two hundred professional designers within the creative teams. Zara’s products are diversification strategy‚ include men’s and women’s apparels and accessories that keep up with the current fashion trend. ϖ Area of interest: o Product development o Store planning and visual merchandise ϖ Headquarters address is in Avenida
Premium Hotel chains Inditex Open Travel Alliance
from Spain. The chain was founded in 1975 by Mr. Ortega‚ and it now has more than 1.000 stores in approximately 63 countries – so it is a very big chain. However Zara has its biggest market in Spain‚ where they have 364 stores in total. They sell fashion clothes of a fairly good quality to reasonable prices – this also means that they have a broad target group‚ which we believe to be from kids to adults younger than 50‚ both men and women. Over the years Zara has expanded their product line heavily
Premium Marketing Inditex Fast fashion
What are the company’s competitive advantages? Zara is ‘fast fashion’. In order to proof this statement we are taking a look at different components where we can see their competitive advantages. Design The designers go to fashion shows‚ they develop sketches and while they select fabrics‚ the price of each product is already determined. The collection has to arrive in the stores at the start of the selling season. In order to keep up with the trends they not only look at the sales data but they
Premium Retailing Fashion Marketing