ZARA Fashion 1) With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency? Note that while the electronic version of Exhibit 6 automates some of the comparisons‚ you will probably want to dig further into them? The four companies shown above have very different business models. Inditex owned much of the production
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can’t be afraid to take advantage of change”. - Eric Schmidt This case principally discusses concerning Zara‚ the major procession of provisions of Inditex and the predicament its Information Technology (IT) section is sensing on improving its Point-of-Sale (POS) workstations. In 1975‚ Zara was originated by Amancio Ortega. During 1985‚ Inditex was shaped as an investment business atop Zara‚ erstwhile retail trading handcuffs and a system of on the inside possessed traders. Castellano who served
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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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on the Spanish retail giant‚ Inditex and how its largest retail chain Zara has been so successful through its simple business model of speed‚ flexibility‚ and high fashion. As of 2002‚ Inditex had six separate chains: Zara‚ Massimo Dutti‚ Pull & Bear‚ Bershka‚ Stradivarius‚ and Oysho. Each chain operates independently and is responsible for its own strategy‚ product design‚ sourcing and manufacturing‚ distribution‚ retail. Zara is by far the largest‚ most profitable‚ and most internationalized of
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TYPICAL PRODUCT LIFE CYCLE • Sales decreases as the product moves over the timeline ZARA PRODUCT LIFE CYCLE • High fashion industry with latest designs and trends 5-6 weeks life cycle • The life cycle curves is shown as the graph above ZARA’S KEY FACTORS SHORT LEAD TIME LOWER QUANTITIES MORE STYLES • Keep up with the newest fashion trends more fashionable clothes • Zara only needs about 30 days to identify new trend and have the product available in stores
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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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Schmidt‚ Julius Liebrecht‚ Djaky Agbadou‚ Nathalie Garro In-Class Case Study: 1 Introduction: Background Information 1.1 Company overview The firm Zara is a Spanish clothing and accessories retailer based in Galicia‚ northern Spain. In 1975‚ founder Amancio Ortega opened the first store in La Coruna‚ Spain. Zara is the flagship chain store of the Inditex group (Industria de Diseno Textil)‚ encompassing many self-designed different fashion styles from daily clothing to formal suits
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Social environment: With the huge numbers of store (one more is opening in Sydney‚ Australia)‚ Zara has settled in many countries. Therefore‚ the firm must respect the culture of each kind of customers‚ wherever they are from. Zara must create clothes that fit to every kind of culture around the world. Moreover‚ Zara only employ people that live next to the store. By encouraging local employment‚ Zara helps the country to fight Unemployment. -The Legal environment: The great numbers of shops
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INDIVIDUAL ASSIGNMENT 1. What makes Zara different from other specialty apparel retailers? What are the main differences in the business models of Zara and H&M? Zara’s greatest strength and at the same time the difference from other specialty apparel retailers lies in its supply chain ‚ which allows Zara to turn over new styles in a fraction of the time ( three weeks ) it takes conventional retailers. It is interesting how the two leading fashion retailers ( Zara and H&M ) have totally opposite
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Strength Brand Zara is one of the famous national costume brands. There are about 2000 chain store at about 50 countries‚ and it be evaluated the most research value brand in the Europe. Zara has big potential development ability in the future Amount of clothing styles Zara always produced about 20 thousand kinds of styles clothes every year‚ so it gives some selections to different customers. Zara always give a fashion and strange feeling to customers. More selections and follow fashion
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