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 into them. It also owns a 130‚000 m² warehouse in close vicinity to its headquarters in Arteixo‚ Spain. In order to accommodate the company ’s initiatives for backward vertical integration‚ Zara purchased 20 factories that were
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Question 2.Why has Inditex chosen to have both in-house manufacturing and outsourced manufacturing? Why has Inditex maintained manufacturing capacity in Europe even though manufacturing in Asia is much cheaper? Almost 80 % of the Zara’s production is carried out in Europe and high proportion of this is carried out in a headquarters in Spain. Almost half of its production is in-house or closely controlled facilities. This gives the Zara a tremendous amount of flexibility and control Inditex has owned capital-intensive
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Zara is one of the largest international fashion companies and it belongs to Inditex‚ which is one of the world’s largest distribution groups. Zara has over 2‚000 stores strategically located in leading cities across 88 countries. Zara’s designers and customers are inextricably linked and the specialist teams receive constant feedback on the decisions its customers are making at every Zara store. This feedback inspires Zara’s creative team‚ which is made up of over 200 professionals. It is always
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fairly priced) Business Analysis Overview The Swedish company Hennes & Mauritz AB is the second largest clothing retailer in the world‚ just behind Spain-based Inditex (parent company of ZARA). The H&M Group’s business consists mainly of sales of clothing‚ accessories‚ footwear‚ cosmetics and home textiles to consumers. In addition to H&M Home‚ the group also owns several brands‚ as shown here‚ which make the company
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Fashion industry is one of the most powerful‚ yet misunderstood industries in the world. The way we dress is so important to the people that it creates the unstoppable‚ powerful force behind that complex process of design‚ manufacture and distribution. Fashion industry operates on three levels- haute couture‚ ready-to-wear and mass production. The main difference between them is quality of the product and price‚ but the history of the three segments is also different. We can easily say that couture
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retailer‚ but on closer inspection... A Zara store in China. The chain’s owner‚ Inditex‚ surpassed Gap Inc. 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
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exchanging data in real-time‚ and increase sales by implementing customer requirements more efficiently (iwarelogic.com‚ 2010). This essay will explore several key areas related to successful Supply Chain Management at Zara‚ a flagship chain store of Inditex Group based in A Coruña‚ Spain. The Make-Buy decision The make or buy decision entails choosing between manufacturing a product in-house or purchasing it from an external supplier. When making this decision‚ the two most important factors
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The Future of Retail Clothing: Will Uniqlo turn the World Japanese? This case has been written by Professor Marie-Catherine Mars‚ Edhec Business School. This case was made possible through the generous collaboration of Uniqlo France. The author warmly thanks André Tordjman for his valuable help and thought-provoking comments during the writing process. The case was created as a basis for class discussion and does not illustrate either effective or ineffective decision-making in a
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Evaluation of IT Implementation 16 • Conclusion and Recommendations 16 • References 19 Zara Case Paper Analysis 3 Abstract This case paper presents the business analysis of Zara‚ the leading and the profitable brand of Inditex. The case paper’s objective is to discuss whether to update the current DOS/IT infrastructure and evaluate the effects of the upgrade. By using the Michael Porter’s value chain analysis‚ we can understand Zara’s core business model of vertical integration
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chains and their customers. Weaknesses (3 examples) 1. No way for consumers that aren’t close to brick and mortar stores to buy merchandise without traveling to and visiting the store. 2. Only have warehouses/distribution centers in Spain. 3. Inditex is heavily dependent upon Zara. Zara generates 76% of Inditex’s sales revenue and 85% of the EBIT during fiscal year 2001. Zara also had 86% of Inditex’s international sales. Opportunities (3 examples) 1. Advertising. Zara spent just .3% of its
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