Vertical Integration vs Outsourcing of Zara Written by Mohd Rahman October 04‚ 2014 “The original business idea was very simple. Link customer demand to manufacturing‚ and link manufacturing to distribution. That is the idea we still live by” -- Jose Maria Castellano Rios‚ Inditex CEO. 1 Introduction to Zara Zara is an icon in the fashion world and largest international fashion designing and manufacturing company. Zara is the flagship chain store of Inditex Group owned by Spanish
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2) For the global fashion apparel industry explain key dominant features and industry driving forces. Outline Zara’s strategies for leveraging this. Industry overview: The global fashion apparel industry is one of the most important sectors of the economy in terms of investment‚ revenue‚ and trade and employment generation all over the world. Some of its major contributors are: Significant consolidation in retail Increasing use of electronic commerce in retail Wholesale trade The
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Creepy Craig It was almost like lying in a boiling rubber blowup pool. The air was thick and Zara couldn’t manage to fall asleep. The strange noises from across the hall filled the silence of her apartment again. Zara always felt suspicious of the man who lived there‚ because when she waited for the lift to go to the floor of her unit‚ he would stand there at least four times a week and watch her as the doors closed. The creepy thing about that was‚ when the lift reached the sixth floor
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Innovative Business Model Inditex‚ the company that owns Zara has an innovative business model that serves as the foundation of its strategic capability. The business model of Zara gives utmost importance to customer and continuous innovation. The organization considers the customer as the beginning and end of its business. However‚ Zara has pushed forward by giving the customer an active role from the start of the chain and turned it into the principal drive for its entire business model. The
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Agile Supply Chain: Zara ’s case study analysis Galin Zhelyazkov Design‚ Manufacture & Engineering Management; Strathclyde University Glasgow email: galin.zhelyazkov@strath.ac.uk Abstract Purpose – The purpose of this paper is to assess and document the key aspects in Zara ’s success by identifing current gaps‚ and to provide direction for future research efforts. Design/methodology/approach – Zara ’s case studies and literature published from 2001 to 2010 was reviewed. Findings – The review summarizes
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distribution of their clothing would be greatly hampered. Zara realizes that the customers don’t care about the channel of distribution‚ what they do care about is the customer service level. Zara’s customers have come to expect store deliveries twice a week and will plan their shopping accordingly. If the channel didn’t deliver when expected‚ then the customer would be disappointed‚ therefore‚ this is extremely important to the overall success of Zara. Not only have the customers come to expect the delivery
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Raoul and Giordano. Vision “ZARA is committed to satisfying the desires of our customers. As a result we pledge to continuously innovate our business to improve your experience. We promise to provide new designs made from quality materials that are affordable” Mission Statement “Through Zara’s business model‚ we aim to contribute to the sustainable development of society and that of the environment with which we interacts.” Target Market & Price Zara sells apparel‚ footwear and accessories
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ZARA: Responsive‚ High-Speed‚ Affordable Fashion 1.What is Zara’s value proposition? How does it differ from its competitors? Zara’s value proposition is ‘low-cost but high fashion’ together with the opportunity of having a new piece of clothing considered as ‘unique’ -that won’t be in the shop for more than 2 or 3 weeks. On short‚ as well the title of this paper states: ‘Responsive‚ High speed‚ Affordable fashion’. Stores are managed as small business‚ vertical communication and supply chain
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textile group‚ which owns the famous brand Zara. It has published its last figures testifying of its growing share value on the market. The group is leader in the European textile market and owns more than 4000 stores around the world and generates more than 85 000 jobs. Its headquarters are located in Arteixo in the North of Spain where most of the production is done. The group owns 8 brands: Zara‚ Bershka‚ Massimo Dutti‚ Pull & Bear‚ Stradivarius‚ Oysho‚ Zara Home and Uterque. For each of these brands
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the marketing approach adopted of Zara. It is now one of the most valuable‚ in fact 2nd‚ brands in the world. In 2006‚ its brand value was more than 5‚100 million dollars. In fact‚ Zara is the only brand from Spain which belongs to the list of top 100 valuable brands in the world. Currently Zara is the second most valuable brand in the world with respect to growth. Business Week‚ the leading business magazine‚ and Interbrand‚ a brand consultancy of US‚ has rated Zara just after Google in their list
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