ZARA: IT for Fast Fashion Önder BARLAS Executive MBA Student Boğaziçi University‚ Istanbul Abstract: In 2003 Zara faced a problem whether to upgrade the operating system they used for their point-of-sale (POS) to a new Windows based one‚ or to continue using the stable and old one. This report aims to analyze the problem by conducting a SWOT analysis and offering a solution path best suited on Zara’s strategic position in the clothing industry. 1. Brief Information about Inditex and Zara Inditex
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Dr. Everly discussed the effect of crisis on the families. The impact on families is like the impact on a community. Families can be referred to as a community. Some of the pressures on the families include withdrawal from the group. It is preferred that family stay together during a disaster. However‚ some may want to be isolated and pull away. The stress of the disaster may cause some family members to become short tempered. They are angry and full of anxiety. Dr. Everly stated that “people
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Porter Analysis of the Zara Fashion Chain The Zara fashion chain‚ with 546 stores in 30 countries today ?from which 340 are outside Spain- and ?2914‚3 millions of total sales in 2002‚ is undoubtedly the group?s locomotive (Inditex‚ 2003). In 2002 it represented 33% of the group?s total stores‚ accounted for 72% of the group?s total sales and contributed to the holding?s total profits for ?540.4 millions (Inditex FY2002 Results Presentation‚ 2003). Moreover‚ Zara with 75-90 new stores within 2003
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After approaching a Reiss and Zara Store in Oxford circus‚ speaking to staff and doing some more research on the internet i have come to notice both ZARA and REISS are a growing profitable companies. When looking at REISS THE BRAND: Reiss a retailer of “own brand” quality fashion menswear and womenswear that established itself in London in 1970. The brand has become reorganized as a progressive‚ fashion-led retail company. Designing and producing own –label ranges it offers an aspirational look
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competitiveness is decreasing due mainly to labor costs. As with the country’s economic development‚ the new sources of competitive factors need to be strategically developed and cultivated. The purpose of this study is to explore what constitutes a country’s competitiveness in the global apparel market after losing its labor competitiveness and how a country effectively achieves it. Design/methodology/approach – This study employs two competitiveness models‚ Porter’s diamond model and a generalized double
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What is the conventional wisdom of the fashion industry with respect to design‚ manufacturing and advertising? Answer: Conventional wisdom of fashion industry "SUGGESTS LEVERAGING CHEAP CONTRACT MANUFACTURING IN DEVELOPING COUNTRIES TO KEEP THE COST OF GOODS LOW WHILE THE COMPANY FOCUSES ON DESIGN AND ADVERTISING." Firms can lower prices and sell more product or maintain higher profit margins-all good for the bottom line. However‚ global competition among contract firms has led to race-to-the-bottom
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Zara: Apparel Q 1. Ans: Having a very responsible supply chain Zara is enable to keep store inventory to a minimum‚ and keep a fast turnaround of new products. This encourages customers to buy the product as soon as they see it in a store because the same product might not be there the next time and Zara does not always send stores the same product twice. Q 2. Ans : Zara does manufacture some clothing in Asia‚ but not to save cost. It is to save time in supplying the Asian market and to keep its
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Key Success Objectives for Zara’s Performance Speed Speed and responsiveness to Market‚ Zara has changed the way clothing industry works where deigning‚ production and delivery to the retailers requires period of six months. The design and distribution cycle of the company takes just 10-15days in the whole process. Zara’s speed to market in product development exceeds the capabilities of its competitors. This in itself provides additional value to stakeholders‚ customers‚ and stores in producing
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Q1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Ans. The four companies shown given in the case have very different business models. Inditex owned much of the production and most of its stores. Inditex is thus a vertically integrated company. This gave Inditex a competitive advantage‚ which is quick response to the market requirements
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integrated structure not only makes it possible to shorten the response time but also allows flexibility and keeps the size of inventories to a minimum‚ thus controlling the significant source of risk in the fashion industry as much as possible. What makes the collections a success is that Inditex creates opportunities for many people to review the collections‚ continually incorporates changes in fashion‚ and offers new designs that respond to customers ’ wishes. Making use of the flexibility of
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