Zara’s Case Study Company Profile Zara is one of the largest international fashion companies with 1671 stores around the globe. It is a part of Inditex holding. Inditex is one of the world’s largest fashion retailers‚ welcoming shoppers at its eight store formats -Zara‚ Pull & Bear‚ Massimo Dutti‚ Bershka‚ Stradivarius‚ Oysho‚ Zara Home and Uterqüe - boasting 5.693 stores in 85 markets [www.inditex.com]‚ [www.zara.com]. In 1975 the first Zara shop was founded in Spain. In 1976-1984 In-Spain
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Challenges Faced by Zara in the United States In the United States‚ fast fashion accounts for only 1% of the $181 billion U.S. apparel market‚ compared to 10% in the EU1. Although they are running 1000 retail stores efficiently‚ only 44 of them are located within the U.S.2. Zara has emerged as a global fast fashion leader as they are able to get up to the instant trends on their shelves within 2 weeks compared to their competition’s 6 weeks to 4 months‚ while still operating on a low-cost model
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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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(Low to Medium) * New entrants will have to deal with high and large fixed cost * incentive because of profitability of zara * newest fashion at an inexpensive price * Zara as part of the Spanish Inditex Group‚ can benefit from the micro-economic concept of the Economies of Scale. Hence it gains cost advantages as production (scale) increases * Zara is operating within the market of “fast fashion” hence size as well as economic efficiency matter. Inditex’s superior supply chain
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ϖ Company 11 – Zara‚ Inditex ϖ Zara‚ the world largest clothing retailer brand that is part of the Inditex multinational clothing company which was created by Amancio Ortega and Rosalia Mera in 1974. They are based in the northwest of Spain. Currently‚ Zara has a total of 2‚000 stores in major cities around 88 different countries. They are acclaimed as a fast fashion company in the industry with more than two hundred professional designers within the creative teams. Zara’s products are diversification
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Case: “Zara: IT for Fast Fashion” Student ID: U00235538 Issue Zara‚ the flagship chain of Spanish based holding company Inditex‚ has grown to great prominence in the international retail fashion industry. It has done so by advantage in recognizing and responding to changing fashion. Recognizing and quickly responding to the changes in fashion trends is largely achieved through a collaborative system of store managers and mid-management level commercials. The exponential growth of Zara
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Analysis of Issues The company Zara uses resources that are to fully utilize the labor regardless of the process-making which contains harmful substances in the production of goods. The stakeholder however has the power to stop the unethical incidents including making an event for the prevention of harm towards the customers. The company concerns about cost saving and efficiency to be made in Taiwan however could cause harm that endanger the wearer and unethical issues. Customers are warned to
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What is Zara value proposition to customers? How is Zara’s Supply Chain helping this value proposition? Zara is able to sell fashionable clothing to consumers. It can quickly respond to consumer trends and bring garments to market that follow trends in the local market. This concept of “fast fashion” allows trends to move from catwalk/conception to retail location quickly‚ in some instances in just a few weeks. It also affords these fashionable items at reasonable prices. Consumers therefore look
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for functions of management in your organization . Profile Zara is one of the largest international fashion companies. It belongs to Inditex‚ one of the world’s largest distribution groups. Zara welcomes shoppers in 86 countries to its network of 1.770 stores in upscale locations in the world’s largest cities. The retailer’s international footprint proves that national borders are no hindrance to a shared fashion culture. Zara is in tune with its customers‚ who help it give shape to the ideas
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In what ways are elements of the classical management and behavioral management approaches evident at Zara International? Inditex’s group known a ZARA had implemented elements of both classical management and behavioral management approaches. Starting off with the Classical Management‚ ZARA has used some of the principles of Henri Fayol’s Administrative principles. Building their business model to identify the following five “duties” of management‚ which are foundations for the four functions of
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