Zara case paper Analysis Zara: IT for Fast Fashion Case Analysis Abstract This case paper makes a possible business analysis of Zara‚ A successful Spanish accessories and clothing retailer of Inditex (Parent Company). The case analysis objective is to discuss on its POS systems to be continued on DOS based operating systems or to upgrade. A brief analysis of Zara’s business model. The factors helped Zara to succeed with minimal infrastructure. An overall analysis of strength
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Zara Zara varies in price‚ promotion‚ and positioning from some of its main competitors‚ H&M and Gap. Zara uses very little of its budget on promotion and marketing and relies more on its store windows to advertise its name to the public. Zara also places stores in busy areas and predominantly in more affluent areas in order to attract the most customers who will have the financial resources to purchase clothes from them. Zara’s store windows are designed to capture and entice customers and
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activity‚ and the implementation of the change in all its complex technological‚ human‚ and organizational dimensions". (Davenport‚ 1993) ZARA ZARA is founded in the year 1975 and owned by Amancio Ortega‚ in La Courna. Inditex is probably the world ’s fastest growing clothing retailer with over 3‚100 stores around the world in over 70 countries and the Zara format taking around 1‚000 of those stores. In March 2006‚ the group overtook Sweden ’s Hennes & Mauritz (H&M) to become Europe ’s largest
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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 IN ANY COMPUTER IN THE STORE. So they can just determine this
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------------------------------------------------- Masters in Financial Management ------------------------------------------------- 2011 - 2012 ------------------------------------------------- ------------------------------------------------- Zara: responsive‚ high speed‚ affordable fashion ------------------------------------------------- Strategic Management Prof Dr Peter Verhezen Quynh Lan Nguyen Engaging in irregularities is severely sanctioned in correspondence with article
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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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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 on the IT infrastructure and design. The fact that “only one person had left the department” in the past 10 years further confirms that the retailer is suffering from cognitive and action inertia‚ and thus creating a huge barrier for such upgrade. Nevertheless‚ Zara should still perform such upgrade in the long run. Q1b. Should
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ZARA RESOURCES Tangible resources Financial resources: Inditex‚ the parent company of Zara had a net profit in 2011 of 1.73 billion euros: a jump of 32% of its net profit of 2010. Physical resources: Moreover Zara has 507 stores around the world with a total selling area of 488‚400 m² and 1‚050 million of Inditex’s capital invested into them. It also owns a 130‚000 m² warehouse closed to its headquarters in Arteixo‚ Spain. Zara also purchased 20 factories that were highly automated
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the Fashion World Upside Down 13 December 2007 Introduction ZARA is the flagship chain store for the Spanish Inditex Group owned by Spanish tycoon Amancio Ortega‚ who also owns brands such as Massimo Dutti‚ Pull and Bear‚ Stradivarius and Bershka. Today‚ Inditex is probably the world ’s fastest growing clothing retailer with over 3‚100 stores around the world in over 70 countries (more than four times the 2000 figure) the Zara format taking around 1‚000 of those stores. In March 2006‚ the
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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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