and discussion As complete as possible‚ sketch the supply chain for Zara from raw materials to consumer purchase. Raw material – High tech automated cutting facilities – Small workshops – Ware houses – Stores – customers – Stores – Commercial managers Raw material Zara makes 40 percent of its own fabrics and produces more than half of its own clothes (maximize time efficiency) Cuts fabric in-house As it completes designs‚ Zara cuts fabric in-house. The cutting is done in Zara’s own high-tech
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A Zara - What did we learn? The case examines Zara‚ or its parent Inditex‚ that has established a super quick response value chain system. Traditional apparel value chains take months before a fashion season begins‚ but Zara is able to observe what is hot (and what is not selling) and responds quickly on the up-to-date fashion trends. As a result of Zara’s outstanding results‚ Inditex has expanded into 40 countries by 2001. • A quick comparison (see Class PowerPoints for financial
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1. Created by ChathuraRavilalHapuarachchiBenettonZara 2. SUPPLY CHAIN MANAGEMENT Supply chain management involves planning‚ design‚ maintenance and control of the flow of materials and information along the chain in order to efficiently satisfy customers requirements (Schroeder‚ 2000).ZaraBenetton 3. INTRODUCTIONEstablished in 1975It has stores in 39 countriesAnnual sales over $3 billionBiggest market is north –west SpainIn 2003 it has become the world’s fastest growing volume garment retailerIt’s
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Zara IT for Fast Fashion Case Notes Identify decision issue‚ and your role as a decision maker Salgado and Sanchez need to decide if it is the right time to update Zara’s information technology. The key concern is the outdated operating system they use for their point of sale (POS) terminals. Should they purchase the current POS machines from their vendors so that they can support their needs in case the vendor changes their machines to new technology? Or should they move to using new operating
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MN3027 – STRATEGY IN ACTION ASSIGNMENT 2 – 3‚000 words ZARA: FAST‚ FASHION from SAVVY SYSTEMS Contents Contents 2 1.0 Introduction and Key Issues: 4 2.0 Present Vision‚ Mission‚ and Corporate Objectives: 5 3.0 Situational Analysis: 6 3.1 Environmental Analysis: 7 3.1.1 PESTLE: 7 3.1.2 Market Structures: 9 3.2 Industrial Analysis: 9 3.2.1 Competitive Forces: 9 3.2.2 Strategic Groups: 11 3.2.3 Key Factors for Success: 12 3.2.3 Competitor Profiles: 13
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discusses the unique supply chain management practices of Spanish garments retailer Zara‚ which enabled it to gain competitive advantage over other fashion retailers in the world. Zara’s vertically integrated supply chain system enabled the company to place the latest designs in any store across the world within a period of two to three weeks. The company produced garments as per the latest trends in a limited quantity. Zara introduced 12‚000 designs every year‚ with new designs appearing in the stores
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To what extent you feel the business model of Zara is sustainable? Critically evaluate the impact Zara has had on the fashion industry. The Fashion Imitator Established in 1975‚ Zara is one of the most successful retailers of today’s world. Their clear focus and vision has made them to tap the power of the fashion. Operating in 62 different countries it has nearly around 2500 stores all over the world. Zara under the flagship of Inditex‚ (a holding company located in Northwest Spain) is a fashion
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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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Herramientas del Caso – Zara: Fast Fashion The value-chain strategic decision-making framework Rapid-Response Capability in Value-Chain Design Fine‚ Vardan‚ Pethick and El-Hout Sloan Management Review‚ 2002 Los autores desarrollaron un modelo de Evaluación del Valor Estratégico (SVU) de una compañía como complemento a la herramienta tradicional del Valor Económico Agregado (EVA). El modelo SVU agrega los siguientes componentes cualitativos al proceso de evaluación y toma de decisiones en una
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Reading 2/6/13 1.M. A. Peterlaf‚ “The Cornerstones of Competitive Advantage: A Resource‐Based View‚” Strategic Management Journal‚ Vol. 14 (1993): pp. 179–92. This article told about the resource based view of competitive advantage‚ combined with the existing opinions to the resource saving mode and company performance.There are four conditions to keep the competitive advantage:resource heterogeneity‚ex post limits to competition‚imperfect resource mobility and ex ante limits to competition
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