Industry Analysis: Within the global apparel chain‚ profits are derived from “unique combination of high-value research‚ design‚ sales‚ marketing‚ and financial services that allow retailers‚ brand marketers‚ and branded manufacturers to act as strategic brokers in linking overseas factories” with markets (Gary Gereffi). Barriers to entry are fairly low. Not much capital is needed to enter the industry‚ as franchises and joint ventures are popular methods of establishing retail stores while keeping
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Zara Thrives by Breaking All the Rules - BusinessWeek Page 1 of 2 INNOVATION October 9‚ 2008‚ 5:00PM EST Zara Thrives by Breaking All the Rules How the Spanish apparel chain gets new designs into stores in two weeks while keeping costs low by Kerry Capell ARTEIXO‚ SPAIN Many U.S. apparel retailers are choking on slow-moving inventories as consumers hold back on spending. But Spain’s Inditex‚ whose Zara chain pioneered cheap chic‚ is zipping ahead. The $13.8 billion company‚ which
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Question No1.Advantages of responsive supply chain of Zara? A responsive supply chain of Zara works collaboratively among the stakeholders to exchange information in a feedback loop in order to produce enough of a product to satisfy uncertain demand. Zara has greater visibility into the supply chain which makes it responsive to the current market. This allows Zara to sense and respond quickly to capitalize on new opportunities. The information systems are the heart of the business model which enables
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Zara is one of the largest international fashion companies which belongs to the Inditex Group operating in textile design‚ manufacturing and distribution. Inditex is known to be the most successful fashion retailers in the world. The Inditex Group is made up of more than one hundred different companies which each have helped gain the success of the group. The Fashion Companies owned by the group include Pull and Bear‚ Massimo Dutti‚ Bershka‚ Stradivarius and Zara being its Flagship chain store. The
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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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CNN.com - Zara‚ a Spanish success story - June 15 2001 http://edition.cnn.com/BUSINESS/programs/yourbus... MAINPAGE EUROPE WORLD WEATHER BUSINESS markets market data technology tech markets currencies biz international SCI-TECH ENTERTAINMENT IN-DEPTH NEWS BRIEF SPORT Zara‚ a Spanish success * story June 15‚ 2001 Posted: 4:37 AM EDT (0837 GMT) Your Business Your World Success without sweatshops • Zara does things differently LONDON‚ England (CNN) -- In an era when clothing retailers
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Research papers Zara : A. Clearance Pricing Optimization for a Fast-Fashion Retailer Summary: The research paper ‘Clearance Pricing Optimization for a Fast-Fashion Retailer’ talks about how Zara has increased its clearance revenues by approximately 6% by following a price optimization model. Zara uses minimal in-season promotions and offer continuous changing styles. However they were facing clearance pricing problem because it involved comparatively more different styles of unsold inventory
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Significant local variation in customers’ attributes and preferences was an issue not only between regions but also within regions. ZARA’S BUSINESS MODEL We mainly analyzed Zara to recommend on Inditex’s strategy since it was the flagship of Inditex and the generator of a huge percentage of financial results by itself. Zara used needs-based positioning‚ targeting a specific segment of customers and providing a tailored set of activities that can serve those needs best‚ in developing its business
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1. a. Core competencies of Inditex Inditex’s infrastructure The six retailing chains: Zara‚ Bershka‚ Massimo Dutti‚ Pull and Bear‚ Stradivarius and Oysho were organized as separate business units‚ responsible for their own business strategies‚ product design and other activities. Nonetheless‚ coordination across the chains increased an expansion power of Inditex as the Group and induced the management to open some multichain locations (Gnemawat & Nueno‚ p. 8‚ 2006). Visionary management The founder
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Threats - ZARA Some threats that affect ZARA include international expansion‚ geographic scope‚ and intense competition. Zara recognizes that the company needs to have a competitive advantage in order to survive‚ so they are constructing a second distribution centre in Zaragoza. Also the company is still looking to expand internationally. Expanding in Spain is difficult for the company because of past experience in Sweden. Zara is considering expansion in North America‚ but is concerned that it
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