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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1. As completely as possible‚ sketch the supply chain for Zara from raw materials to consumer purchase. First of all‚ a designer team in Arteixo‚ Spain sketches out the new styles and clothe lines. It does so after consulting with ‘commercials’ (the term for people who act as connection among the designers and the chain’s 2‚800 global store managers). After that‚ the designer team decides which fabrics offer the best combination of fashion‚ quality and price. Then they electronically send the
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Dairbekova Professor: La Perla 20th December 2013 TABLE OF CONTENTS INTRODUCTION This academic paper analyzes the marketing aspects and theories that are being applied to the company Zara‚ and analyzes and evaluates the marketing performance of the company. The report will cover the following topics: 1. The production of a concise external marketing audit by using PESTEL and SWOT analysis and Porter’s five forces‚ and the identification
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Zara : IT for Fast Fashion Zara is a leading brand in the fashion retail industry. It is a vertically integrated retailer‚ a pioneer of the Just-In-Time Inventory system. It becomes important to define the critical success factors for this industry in the analysis presented through the following three questions: 1. How can you differentiate Zara’s use of IT? Technology investment should be targeted at the points in the value chain where the impact is most significant. If we look at the value
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Corporate Strategy – Zara The core concept of Zara ’s business model is they sell "medium quality fashion clothing at affordable prices"‚ and vertical integration and quick-response is key to Zara ’s business model. Through the entire process of Zara ’s business system: designing‚ sourcing and manufacturing‚ distribution and retailing‚ they presented four fundamental success factors: short cycle time‚ small batches per product‚ extensive variety of product every season and heavy investment in
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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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Zara Case Write-Up Zara was founded in 1963‚ by Amancio Ortega Goana. He started the company because he wanted to improve the manufacturing and retail aspects of fashion and to reduce the cost of the apparel chain. He opened the first stores in Spain‚ and slowly over the decades started to expand to different countries. Zara headquarters is in Arteixo‚ Spain‚ with their distribution center close by. Inditex‚ the holding company that owns Zara‚ has a business model‚ which states‚ “Global specialty
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ZARA INTERNAL ANALYSIS. Zara’s core competence is recognizing and assimilating the continuous changes in fashion. They’re very good at this because there’s a very good communication within the company. Store managers send information about the customer demands and new fashion trends to the headquarters on a daily basis. So if there’s a new trend‚ Zara is able to adapt their products or design new articles immediately. If a design doesn’t sell within a week‚ it’s withdrawn from the shops‚ further
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Fakultät für Betriebswirtschaft PS - Unternehmensführung Term – Paper „Zara - Case Study“ WS 2012 Seminararbeitgruppe: Severin Springer Hans Kahofer Raphael M`Barek Antoine Eber Table of content 1. Case Introduction.........................................................................................................................1 1.1 Mission‚ Vision
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2. Zara’s product cycle was much better than its competitors. Zara was able to originate a design and have finished goods in stores in 4-5 weeks for entirely new designs. The industry model was 6 months for design and 3 months for manufacturing. Zara produces 11‚000 items a year as compared to 2‚000-4‚000 by competitors. 3. Zara’s quick product cycle created a sense of scarcity and a “buy now or miss it” mentality among customers. Zara shoppers visited the chain 17 times a year‚ compared with an
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