licensees ran its stores. To prove Zara has the prospect of sustainable growth in the international apparel market‚ it is important to understand and compare the financial differences of Inditex‚ its parent company‚ and its major competitor. The most interesting of Zara’s competitors for comparison is Hennes and Mauritz (H&M)‚ who as the case study states‚ “was considered Inditex’s closest competitor‚ [with] a number of key differences”. H&M differs from Zara because they outsource all of their
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ZARA: IT for Fast Fashion Önder BARLAS Executive MBA Student Boğaziçi University‚ Istanbul Abstract: In 2003 Zara faced a problem whether to upgrade the operating system they used for their point-of-sale (POS) to a new Windows based one‚ or to continue using the stable and old one. This report aims to analyze the problem by conducting a SWOT analysis and offering a solution path best suited on Zara’s strategic position in the clothing industry. 1. Brief Information about Inditex and Zara Inditex
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Background Zara‚ part of Spanish giant Inditex Group‚ provides clothing products to customers demanding fast fashion that looks like high fashion at lower prices. It has been considered as the most remarkable fast fashion company of the 21st century. In order to understand and analyze the dynamics of the sector and the current state of Zara‚ Porter’s Five Forces and SWOT analysis will be used. E-Marketing The key elements of Zara’s e-marketing strategy include social media‚ viral marketing‚ email
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1. Zara was developed with the initial goal to link customer demand to manufacturing‚ and link manufacturing to distribution. Goals such as short production times‚ decreased inventory risk‚ and great choice of clothes have helped formulate a unique value and shape Zara’s current business model. Zara’s business model is based on three aspects: Zara’s fundamental concept is to maintain design‚ production‚ and distribution processes that will enable Zara to respond quickly to shifts in the consumer
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Zara - IT for Fast Fashion Management Information Systems EXECUTIVE SUMMARY The objective of this document is to discuss the issue of Inditex’s DOS-base IT infrastructure and how it affects Zara’s performance. Inditex is concerned about its IT infrastructure being antiquated and the possibility that hardware vendors will upgrade their machines leaving them incompatible with DOS. Because Zara’s core business model is vertically integrated‚ it could specialize in speed and efficiency and
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Zara case study Business model Amancio Ortega Gaona‚ a Galicia native‚ opened the first Zara stores in La Coruna in 1975 and has begun international expansion ever since. Zara is a part of Inditex‚ which is one of the world’s largest fashion distributors. Zara is known for its fast respond to ever- changing fashion trends to satisfy customers’ needs. The purpose of this paper is to discuss issues and alternatives of Zara’s operating system. The three key success factors in Zara’s business are:
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analysis of Zara - fast fashion Structure of paper analysis: ∙Description of Zara ∙Achievement and core competence ∙Problem analysis ∙SWOT of Zara ∙Recommendation ●Description of Zara Zara was founded in La Coruna in 1975‚ which is one of the largest international fashion brands of Inditex. At 1985‚ the Inditex became the holding company atop Zara and other retail chains. The customer is at the heart of the Zara’s business model. Zara use the
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Zara Case Analysis Zara’s Marketing Strategy • Produce a product that can adjust and fit multiple trends and can adapt quickly to new style. • Pride itself on its location (usually on the best street in big cities) as opposed to spending money on public advertisements. • Target a youthful and vibrant culture. • Have current and efficient technology in their stores. Target Market • Young‚ fashion- conscious city dwellers. • Rapidly changing style that needed to cater to people who were not
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Zara Case Management 454 3/20/14 Founded in 1975 by Armancio Ortega‚ Zara is a very successful Spanish clothing and accessory realtor and the first business to start the Inditex Group empire. Starting in a small Galician city known as La Coruna in Spain‚ Zara has grown to be a retailer powerhouse with over 6‚000 stores in 85 different countries. Although the number of stores and locations is constantly changing as Zara is known to open more than a store a day in past
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Zara case Zara uses a vertically integrated system (VMS): In this system‚ wholesalers‚ retailers and distributors work as a unified system. One channel owns the others. They have a corporate VMS system‚ because Zara has managed to build a system that is controlled from the headquarters and it allows a quick response to decide and solve problems. Inditex‚ Zara’s parent company owns most of the resources to design‚ produce and distribute. Recommendations: Instead of doing everything themselves
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