FT 75782136 Subject: Analysis of Problems affecting Zara Date: 2003 Summary Zara is the flagship retail brand of Inditex group and represented 78% of the total revenue generated in the year 1999. The Inditex group has 1080 stores worldwide out of which 64.1% stores in Spain contributed 48% of revenues and the remaining 35.9% stores located in foreign markets contributed 52% revenues in the Year 2001. Out of all the labels of Inditex‚ Zara has been the major contributor of revenue and has 449
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Zara Case Study Main Problems of the Company: Although it seems that the highly centralized distribution system that Inditex uses when it comes to Zara’s operations proves to be profitable and sustainable‚ in the long run in may lead to an impasse in several different directions for the clothing manufacturer. Sustainability of the Global Expansion: Although the centralized decision making reduces the whiplash effect on the overall supply chain‚ this strategy is not entirely without its drawbacks
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CASE 3.4 Continued Growth for Zara and Inditex CIRCA 2008 ARTEIXO‚ Spain¡ªZara stores have set the pace for retailers around the world in making and shipping trendy clothing. Now Pablo Isla‚ chief executive of parent company Inditex SA‚ says Zara needs to speed up. As rivals catch up‚ Mr. Isla is attempting one of the fastest global expansions the fashion world has ever seen‚ opening hundreds of new stores and entering new markets. To do that‚ as an economic downturn threatens
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Explain the data collected by Zara to predict the trend. What makes the middle aged mother to buy cloths in Zara while the daughter aged in mid 20s buys Zara clothing? Because it is fashion able and up to trend. By collecting data and focusing on shorter response times‚ the company ensures that its stores are able to carry clothes that the consumers want at that time. Zara can move from identifying a trend to having clothes in its stores within 30 days. That means Zara can quickly and catch a winning
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Network Expansion The fundamental characteristics and components of the a network of communications is well put together and is suited to their needs to support three stores. The Kudler network is small and only automated at the store level. In analyzing the current network setup‚ a determination will be made on a new network design. This will better automate the network communications between all physical locations of Kudler Fine Foods. Kathy Kudler’s business is still growing with a
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* Construction of Yoga‚ meditation and prayer hall with cultural activities to accommodate another 600 people which cost about Rs.1.00 crore (i.e. $ 2.00) lakhs. Dairy Farm: EXPANSION PLANS AND FUTURE OUTLOOK The future plans of Dar-ul-Sukun reaches beyond the borders of religion‚ cast‚ color and creed. The had always perform to make its members self-sufficient‚ so that they can play a productive part in the society. The non-discriminatory attitude towards the society is a big example of promotion
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Running head: Zara Case Paper Analysis 1 Zara: IT for Fast Fashion Case Analysis Sonal Bhagwat University of Houston-Victoria MGMT 6352-2011FA-25125 November 2011 Zara Case Paper Analysis 2 Table of Contents: • Abstract 3 • Case Description 4 • Goals and Strategy 5 - Speed and Decision-making 5 - Marketing‚ Merchandising‚ and Advertising 6 - Information Technology 6 • Problem Analysis Firm-based-value chain model
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Discussion Questions:1.What type of generic business strategy is Zara pursuing?Zara has a low price strategy because they can use a lower cost structure than their competitors. The quality of the products is lower and they can cut costs so offer a lower price. So we can speak of a cost leadership strategy‚ low cost what gives low prices. On the other hand‚ Zara has also a differentiation strategy. They are unique in a what that they see what the new fashions clothes are and that they are able to
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scope focusing just on their core businesses and outsourcing the rest. Vertical integration is a corporate strategy which the company seeks to acquire control over own inputs or on their output or both. Expansion of activities downstream is referred to as forward integration‚ and expansion upstream is referred to as backward integration. Vertical integration potentially offers many advantages‚ for example it improve supply chain coordination‚ provide more opportunities to differentiate‚ capture
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to US. (Fancourt‚ 2012‚ Pg32). Ford Motor Company for their foreign operations normally do Joint ventures with local companies this way they are able to acquire the local knowledge and expertise and have a greater adaptability to local market. In China they have a Joint venture with Chang ’An. Senior management of both the companies sit together to form the strategy. Procter & Gamble who have a great system for talent management and use the diversity to its advantage. They use these people
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