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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3.1 HISTORY and BACKGROUND ZARA is the flagship chain store for the Spanish Inditex Group owned by Amancio Ortega‚ who also brands such as Massimo Dutti and Bershka. It was first open in 1975 in La Coruna‚ Galicia‚ Spain. Originally a lingerie store‚ then the product range expanded to incorporate women’s fashion‚ menswear and children’s clothes (5). The international adventure began in 1988‚ opened its first foreign store in Oporto‚ Portugal. The market growth remained mysterious and it kept growing
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Question: Identify the corporate strategy of the clothing retailer Zara and discuss how the five operations performance objectives support Zara’s corporate strategy. In addition explain the external benefits of these five objectives. Words: 2597 ZARA INTRODUCTION Zara is Spanish clothing and accessories retailer part of the holding group Inditex which is one of the world’s largest fashion groups. At the close of 2012‚ Zara had 1‚925 stores in its eight sales formats in 86 markets in five
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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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Study Trip Report - Madrid How did Zara become a successful player in the global fashion market? 1. Abstract This academic report is connected to the study trip topic “Adaption of Spain to a globalized economy”. It is focused on the international development of Zara Clothing in an international competitive market and is based on current news‚ statistics and the company his annual report. A few years ago‚ the retailer introduced a unique business process‚ which makes them the leader in fast
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CONTENT Report On Zara Global Strategy 1.0 Background Zara is a subsidiary of the Spanish Inditex Group‚ which are a fashion apparel brand and a flagship chain store. It is the third clothiers in the world and the first in the Spain ranking. In 1975‚ the founder-Amancio Ortega opened the first retail stores in the Spain. (PANKAJ and JOsé‚ 2006).The brand founder Amancio Ortega saw a movie that called Zorba the Greek and he decided to use the movie name for their brand name. But‚ there
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accessories for women‚ men and children through its chains around the world. Zara is the largest and most internationalized of the six retailers that Inditex owns: (Zara‚ Massimo Dutti‚ Pull & Bear‚ Bershka‚ Stradivarius‚ and Oysho). Zara is one of the leading retail garments chain in Europe. Their main competitors are Gap and H&M‚ and together they form a group of speciality chains in the apparel industry. Zara has operated and adopted a different strategy as compared to Gap and H&M and the
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Education Ltd. Company Case 19 Zara – the fast and furious giant of fashion One global retailer is expanding at a dizzying pace. It is on track for what appears to be world domination of its industry. Having built its own state-of-the-art distribution network‚ the company is leaving the competition in the dust in terms of sales and profits‚ not to mention speed of inventory management and turnover. Wal-Mart‚ you might think? No! Tesco‚ possibly? No! The company is Zara‚ the flagship specialty chain
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Background Zara Zara is a chain of stores Belonging to the Spanish fashion group INDITEX founded by Amancio Ortega Gaona. It is the company ’s flagship chain and is represented in Europe‚ America‚ Africa and Asia with 1412 stores in 69 countries‚ 500 of them in Spain. During 2007 it opened 560 stores across the group. . It has three logistics centers‚ located in the main Arteixo‚ province of La Coruna (Spain)‚ where he opened the first store in 1975 and two in Zaragoza and Madrid. In 1975 he
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relevant literature. Zara has been the major pioneer of ‘disposable’ fashion; which makes up over 12% of the UK clothing industry. Zara outperforms its rivals in profitability‚ brand identity‚ and its successful business model. I have used Porter’s five forces model (Porter‚ 1995) to analyse the industry and Zara’s strategic position. I have applied the theory of this model and its determinants to my research of Zara; providing evidence to form strong conclusions. Zara faces competition from
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