Zara : IT for Fast Fashion Zara is a leading brand in the fashion retail industry. It is a vertically integrated retailer‚ a pioneer of the Just-In-Time Inventory system. It becomes important to define the critical success factors for this industry in the analysis presented through the following three questions: 1. How can you differentiate Zara’s use of IT? Technology investment should be targeted at the points in the value chain where the impact is most significant. If we look at the value
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The middle-aged mother buys clothes at the Zara chain because they are cheap‚ while her daughter aged in the mid-20s buys Zara clothing because it is fashionable. Clearly‚ Zara is riding two of the winning retail trends - being in fashion and low prices - and making a very effective combination out of it. Much talked about‚ especially since its parent company’s IPO in 2001‚ often admired‚ sometimes reviled‚ but hardly ever ignored‚ Zara has been an interesting case study for many
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summary General introduction (including a concise consumers and category market/ trend overview) Entry mode -The suitable mode of entry for Zara to enter the clothing industry in Vietnam is franchising. -As Vietnam’s joint venture regulations are strict; the Vietnamese investors must own at least 51% of the enterprise’s capital. This will create some difficulties to Zara in term of controlling the business. -Therefore‚ franchising is more suitable because the mode of entry is suitable for entering a small
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EXTERNAL As for the B2C buying behaviour‚ many perspectives are included. Firstly‚ take a look at the cultural factors. Buyers of ZARA are influenced by culture‚ subculture and social factors. ZARA collects information about its customers via staff members‚ by different observations and also directly from the buyers. Since ZARA is a centralized brand it focuses on the global trends‚ though it has decided to move towards geocentric orientation and started to adopt local solutions‚ too. It is also
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Company Overview Zara is one of the largest and the most internationalized retailers that Inditex Group owns. Inditex Group is based in Spain‚ which is a global specialty retailer that designs‚ manufactures‚ and sells apparel‚ footwear‚ and accessories for women‚ men and children around the world. Zara’s history The founder of Zara‚ Amancio Ortega‚ opened the first Zara store in 1975 in a central street in La Caruña‚ Spain. It was first featured as low-priced look-alike products of popular‚ higher-end
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supply chain explaining how it supports the "fast fashion" model. Zara‚ Spanish clothing with retail chain throughout the world is probably the world’s fastest growing retailer with almost a thousand stores. Zara has it own unique business model that enabled Zara to be compete with its competitors‚ and it’s driven by Zara’s "fast fashion" with its vertically integrated supply chain. Vertically integrated supply chain allowed Zara to successfully build up a strong retail chain combine with the forces
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Zara case 1. What underpins the success of Zara in its chosen markets? Through analyzing this case‚ it obviously demonstrated that it has own successful supply chain. It shows on five performance objectives which refer to speed‚ quality‚ flexibility‚ dependability‚ costs. Firstly‚ it performed on the speed of Zara’s supply chain‚ Zara “has over 650 Zara stores in 50 countries” and rapidly changed fashion trend so that it seemingly difficult to deliver products to stores. However‚ Zara just
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ZARA · Three key success factors – short lead time‚ more style and low supply of any particular style. · Zara – the flagship brand of Spain based Inditex group‚ founded by Amancio Ortega Gaona and opened its first store in 1975. · 1058 stores located in 69 countries as of March ‘08 · Able to conceptualize the garment‚ develop‚ and deliver it to the stores within 2-3 weeks weres the industry average is six months. · Key to success – integration of design‚ production‚ distribution‚ and retailing
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Jonathan Thompson Case Study Write-up- Zara 27 March 2013 Zara strategic model began to evolve as they expanded to overseas markets‚ they began to invest in their manufacturing logistics‚ and IT‚ which included a JIT manufacturing system‚ a 130‚000 square-meter warehouse close to the corporate headquarters‚ and an advanced communication system to connect headquarters and supply‚ production and sale locations. Zara created a vertically integrated system that minimized distance and time between
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Porter Analysis of the Zara Fashion Chain The Zara fashion chain‚ with 546 stores in 30 countries today ?from which 340 are outside Spain- and ?2914‚3 millions of total sales in 2002‚ is undoubtedly the group?s locomotive (Inditex‚ 2003). In 2002 it represented 33% of the group?s total stores‚ accounted for 72% of the group?s total sales and contributed to the holding?s total profits for ?540.4 millions (Inditex FY2002 Results Presentation‚ 2003). Moreover‚ Zara with 75-90 new stores within 2003
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