DIS 620 (TEI 2014) Management Information Systems (Oct 18‚2014) Case 1: Zara‚ Netflix and Amazon Business Systems by Efstratiou Kostandinos 1. ZARA a. General. Zara is one of the greatest global fashion companies belonging to the Spanish retail group‚ Inditex SA. Its founder Amancio Ortega Gaona opened its first store in A Coruña (Spain) in 1975. During the 1980s Ortega started changing the design and distribution process to react to new trends quicker. In 1988 the company started its
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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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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
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Zara Boutique Clothing Store (as subsidiary of Index SA) • Very strong link between store managers and central design team • Real time sales tracking through the use of electronic equipment- helps to identify trends • Trends translated to products within 15 days (catch the fashion while is still hot‚ thus responding quick to the fast changing taste of young urban consumers). Designs delivered quickly to stores • Continuous analysis of value chain and seeks to achieve control on as many sections
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Zara owns and manages numerous resources that can be categorized as tangible‚ intangible or organizational capabilities. The interactions between tangible and intangible resources help create organizational capabilities that 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
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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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Introduction This case 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
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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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