Case Study Analysis- Zara ABSTRACT This paper is based on case study on operation management and positioning strategy of Zara‚ one of the world’s fastest growing manufacturers of fashion clothing. Also a world leading fashion retailer brand of Inditex. The case study outlines how Zara transforms from a local clothing retailer it into a global successful brand. It addresses few components in the case study‚ such as the products and process control and integrate business model used in Zara. The case
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Zara: IT for Fast Fashion On a beautiful August night in 2003‚ Xan Salgado Badas and Bruno Sanchez Ocampo settled into seats at their favorite tapas bar in the Spanish city of La Corufia‚ ordered pulpo gallego (octopus Galician style)‚ and resumed their argument. Salgado was the head of IT for lnditex‚ a multinational clothing retailer and manufacturer headquartered in La Corufia
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case study 1. Company presentation Inditex Group is one of the biggest fashion retailers in the world owning more than 100 companies operating in different sectors of activity. Its unique business model set the basis for one of the leading brands in international fashion industry called Zara. Zara is an eco-friendly retail company and encompasses more than 5‚000 stores situated in prime locations in more than 400 cities on five continents. (Inditex‚ 2012) 1. Zara’s Information System
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t h e shop Zara. Today‚over 650 Zara stores in some 50 countries attract wellheeled c ustomers in luxury shoppin g districts a roun d t h e world‚ and Senor Ortega is arguably the richest man in Spain. The clothing company he founded‚ called Inditex‚ has been growingever since he opened that first Zara shop. From 1991 to 200^‚ Inditex’s sales - 70"-:. of which spring from Zara - grew more than 12-fold from € 7 million to € 6 billion‚ and net 36 4profits ballooned i4-ft)ld from € 1 million
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In today’s world‚ IS alignment is crucial for the operation and growth of businesses. Information systems allow businesses to deal with vast amounts of complex information and run more efficiently. Founded in 1930s‚ Volkswagen is the leading automotive vehicle manufacturer in Germany. However‚ its USA branch was facing problems with inadequate IT human resources due to excessive outsourcing and a reduction of internal IT staff. Additionally‚ an inadequate budget to cover the considerable cost
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globalization and technology development‚ consumers are easier to access to fashion. As a result‚ the customers are changing and the companies are evolving to deliver customers satisfaction. Zara‚ the most profitable brand of Spain clothing retail group Inditex‚ has leveraged its unique strategy to achieve success and will be expected to maintain a sustainable growth in the fashion industry. Zara’s core competencies can be divided into four areas: process development‚ distribution‚ marketing and integrated
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to finish fabric. Zara’s factories are heavily automated and focused on the capital-intensive parts‚ the final finishing and inspection. In 1990 Zara did an investment for using just in time management. Distribution The director of logistics of Inditex (Lorena Alba) regarded the warehouse as a place to move merchandise rather than to store it. The clothes never stayed longer at the distribution center than three days. The distribution center is more than needed. For example: At the beginning of
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December 3‚ 2007‚ from http://www.company.mango.com/e/comunicacion/dossiereconomico.htm. Mazaira‚ A‚ González‚ E & Avendaño‚ R 2003‚ “The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case”‚ Marketing Intelligence & Planning‚ vol. 21‚ no. 4‚ pp. 220229. 27 Narver‚ J & Slater‚ S 1990‚ “The Effect of a Market Orientation on Business Profitability: A Balanced Replication”‚ Journal of Marketing‚ vol. 54‚ no. 4‚ pp 20-35. The New
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Zara Clothing Company Marketing Plan By Mr. Carl Jastine Eugenio Ms. Angelica May Ignacio Ms. Mary Christine Agojo Ms. Shenna Mae Reyes Mr. Eric Balaoro I. Executive Summary Zara is the largest retail company owned and run by Inditex‚ largest Spanish corporation and the world’s largest fashion group. The way Zara has runs its company is by following a vertical integrated operation that has the advantage to shorten the time in making decisions. Inventories in the stores depend
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Recommendations The best way for Zara to maintain their sustainable growth is to seek new opportunities in the apparel market. With changing consumer behaviors as a result of globalization‚ and U.S. department stores suffering‚ there are growth options available for specialty retailers like Zara. Zara has the opportunity to be one of the trendiest/low priced retailers that America has seen recently. Zara should most likely develop a second central distribution center in the Americas to decrease
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