I. Executive Summary Zara produces of-the-moment fashion and has developed a very successful vertically integrated company which can design‚ manufacture‚ and distribute garments to retail stores in as little as three weeks. Zara ’s target market is comprised of urban‚ fashion-conscious consumers who shop frequently for the latest trends. Currently under debate is a proposed upgrade to the POS system throughout the Zara chain. With over 550 stores‚ this would be a huge undertaking for Inditex‚
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industry? Is that different from what it takes a regional player to succeed? 2. What elements of Zara’s value chain help/hurt its ability to grow? Do you think Zara should grow 3. How would you advise Salgado to proceed on the issue of upgrading Zara’s POS systems? Intro - Inditex (Industria de Diseño Textil) of Spain‚ the owner of Zara and five other apparel retailing chains * Global Apparel Chain - Characterized as a prototypical example of a buyer-driven global chain‚ in which profits
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ZARA: Fast Fashion The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zara’s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy‚ which is supported by competencies in logistic management‚ design and information systems‚ allows the company to maintain less inventory and higher profit margins and is
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STRATEGIC MANAGEMENT PAPER ZARA Created By: Anggita Sulisetiasih 1006718706 Kenji Wibawa Junardy 1006718990 Patricia M. A. Adam 1006805694 International Undergraduate Program Faculty of Economics University of Indonesia Depok 2013 TABLE OF CONTENTS Chapter 1 4 INTRODUCTION 4 1.1. Company Background 4 1.2. Vision and Mission 4 1.3. Long-term Objectives 5 Chapter 2 6 VISION – MISSION ANALYSIS 6 2.1. Importance (Benefits) of Vision and Mission Statements 6 2.2. Characteristic of a
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and clean. We were attracted to Zara since it is very fashionable and has high variety of distinctive styles. Ideal for the independent shopper since customers are not bothered by employees. Zara was also spacious; however we found it was unorganized and messy. 2. We could not distinguish the new clothing line from the previous and since there store is grouped together by color themes‚ it is difficult to distinguish the different styles offered at Gap. At Zara as we entered the store it was difficult
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1. Zara is a Spanish clothing retailer which has 1700 stores in all over 78 countries. 2. Zara has continually maintained its mission to provide fast‚ affordable‚ and fashionable items. 3. Zara’s supply chain has undergone tremendous changes in order to sustain its competitive advantage in today’s market. 4. Zara holds 6 days worth of inventory‚ while H&M holds 52 days‚ and Spanish retailer Cortefiel holds 94 days of inventory. 5. Launched approximately 11‚000 new items per year
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Zara competitiveness as highlighted in number 4 managed to travel globally successfully. As 55% of Zara revenues coming from abroad‚ one can see that Zara was successful in migrating its competitiveness globally. By adapting to each culture‚ Zara has managed to position itself differently in different market. Zara strategy of opening one store for information gathering in the initial phase of entering a new market is one of its key strength points. By starting with such "information gathering" store
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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 business structure (referred to Appendix 1). Zara’s unique process development allowed Zara to produce in a shorter cycle time and more
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Developing innovative products/services for broad range of customers Zara creates a “fast fashion” concept which getting designs to customers quickly. It has more style than Gap‚ faster growth than Target‚ and logistical expertise rivaling Wal-Mart. 2. Significant investments in Marketing‚ Technology Development‚ Procurement & Customer Service ZARA takes just two weeks to get a new design from drawing board to store floor. ZARA invested much in developing its technology like e-business and ERP
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Zara is a very big clothing chain from Spain. The chain was founded in 1975 by Mr. Ortega‚ and it now has more than 1.000 stores in approximately 63 countries – so it is a very big chain. However Zara has its biggest market in Spain‚ where they have 364 stores in total. They sell fashion clothes of a fairly good quality to reasonable prices – this also means that they have a broad target group‚ which we believe to be from kids to adults younger than 50‚ both men and women. Over the years Zara has
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