Growth in the Next Three To Five Years Introduction Zara is a Spanish company that starts its business as a clothing manufacturer. It started to grow from a small company over the decades until it possesses few factories that allocate their products to other countries. Zara crosses over the border of its own country‚ Spain and could be found in upscale locations in the cities like Europe‚ United States‚ Middle East‚ and Asia. Zara has its system of 1603 stores in 78 countries. Its stores are located
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Design As the flagship brand of Inditex‚ Zara possesses a large amount of capital for investment in product design. Moreover‚ the young but capable designers in Zara have the sensitivity to capture the newest trendy style. They are the typical air traveler busy shuttle back and forth all kinds of fashion shows and trade fairs in Paris‚ New York‚ London‚ and Milan‚ from which they can get inspiration and recognize the fashion trend accurately. Therefore‚ Zara could rapidly design and release fashion-sensitive
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CURRENT SITUATION Goal: ZARA’S goal is to respond quickly and accurately to shifting costumer demands. In order to do this ZARA establish 3 processes. 1. Ordering: Every store places an order twice a week to La Coruña. The order includes replenishment of existing items and initial request for newly items. • The store manager determines the replenishment items‚ walking around the store and counting the garments and talking with sales people. THEY CAN NOT LOOK UP THE INVENTORY BALANCE
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Vivian Pankey Neisha Vitello Executive Summary Zara is the flagship fashion retail company under the parent corporation Inditex. First opened in Spain‚ Zara currently has a network of 1‚292 stores spread across 72 countries. The infrastructure Zara has built is a core competency. Their innovations to bring new fashion designs to market faster than competitors differentiates Zara from their rivals. Managers believe the allure of Zara is the freshness of its offerings‚ the creation of a sense
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hours. Zara produces up to 11‚000 items per year while its competitors produce only 2‚000 items approximately‚ this ability able Zara to replace undesirable goods with the preferred one in short notice. According to the short product life-cycle strategy‚ Zara create the sense of scarcity‚ which lead to the customer’s awareness about purchasing the goods right away after it is launched. The finding shows that Zara shopper visits the chain 17 times a year compared with 3-4 times a year for Zara competitors
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Case # 4 – Zara Zara is the flagship company of Inditex‚ an international clothing retailer. Zara began its business as a small retail store in Spain founded by Amancio Ortega Gaona in 1975. In the following decades Zara has grown to nearly 450 store location in 29 countries by the year 2000. Zara consistently accounts for more than 80% of Inditex’s net sales as indicated by Figure 1; linking the success of Inditex to the success of the strategies of Zara. Figure 1 Inditex Net Sales by Concept
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OPERATIONS STRATEGY FOR ZARA COMPANY Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy‚ through the reconciliation of market requirements with operations resources. It is also a tool that helps to define the methods of producing goods or a service offered to the customer. Zara Company deals in the fashion industry. Zara’s success in the apparel industry is attributable to
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Q1a. Should the company upgrade the POS terminals to a modern operating system? It might not be in the retailer’s best interest to perform such upgrade‚ as the new system will replace three of the existing legacy systems in terms of ordering and fulfillment. The IS department will perceive such upgrade as a radical move and is expected to show high resistance in response to it. Even though Zara has a decentralized decision making process‚ the retailer’s IS department exercises absolute autonomy
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current IT system that they utilize‚ specifically their Point of Sales (POS) terminals in which they utilize in all their stores. Currently‚ the system that they use is based on a DOS operating system. In comparison to current technologies‚ DOS based applications are considered to be antiquated‚ although still in use by some organizations. Zara’s terminal vendor has assured them that they are not likely to make any internal changes that will affect their support for Zara’s DOS based system‚ but the
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Rosa: Most important facts Rot: References http://fashionista.com/2011/08/zaras-brazilian-factories-accused-of-child-labor-and-unfair-working-conditions/ Zara’s Brazilian Factories Accused of Child Labor and Unfair Labor Practices By LEAH CHERNIKOFF Thursday‚ Aug 18‚ 2011 / 12:34 PM Photos: Reporter Brasil An investigative report out of Brazil has found that Zara‘s Brazilian suppliers contracted with factories which subjected workers to hazardous “slave-like” working conditions
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