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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industry? Is that different from what it takes a regional player to succeed? 2. What elements of Zara’s value chain help/hurt its ability to grow? Do you think Zara should grow 3. How would you advise Salgado to proceed on the issue of upgrading Zara’s POS systems? Intro - Inditex (Industria de Diseño Textil) of Spain‚ the owner of Zara and five other apparel retailing chains * Global Apparel Chain - Characterized as a prototypical example of a buyer-driven global chain‚ in which profits
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ZARA: Fast Fashion Zara’s performance in the EU. Zara is the largest and most internationalized of Inditex (Industria de Diseno Textil) chain based on Spain. Zara had built up their business in the Spanish market by 1990‚ and started to expand their business into global market. At the same time‚ according to the case‚ they started to make major investments in manufacturing logistics and IT‚ including establishment of a just-in-time manufacturing system‚ a 130‚000-square-meter warehouse close
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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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Corporate Strategy – Zara The core concept of Zara ’s business model is they sell "medium quality fashion clothing at affordable prices"‚ and vertical integration and quick-response is key to Zara ’s business model. Through the entire process of Zara ’s business system: designing‚ sourcing and manufacturing‚ distribution and retailing‚ they presented four fundamental success factors: short cycle time‚ small batches per product‚ extensive variety of product every season and heavy investment in
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SPANISH FASHION BRAND ZARA Carmen Lopez Ying Fan Brunel Business School Journal of Fashion Marketing and Management (2009)‚ 13:2‚ 279-296 INTRODUCTION Zara is one of the world’s most successful fashion retailers operating in 59 countries. However‚ there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an
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Table of contents Introduction p. 3 Zara Company presentation p. 3 Generic strategies p. 3 & 4 Growth strategies p. 4 & 5 Pest analysis p. 5 & 6 Value chain p. 6 & 7 SWOT analysis p. 7 & 8 Price / quality Grid p. 8 H&M Company presentation p. 9 Generic strategies p. 9 Growth strategies p. 10 PEST analysis p. 10 & 11 Value chain p. 11 & 12 SWOT analysis p. 12 Zara and H&M Comparison of the 4 P’s p
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I. Executive Summary Zara produces of-the-moment fashion and has developed a very successful vertically integrated company which can design‚ manufacture‚ and distribute garments to retail stores in as little as three weeks. Zara ’s target market is comprised of urban‚ fashion-conscious consumers who shop frequently for the latest trends. Currently under debate is a proposed upgrade to the POS system throughout the Zara chain. With over 550 stores‚ this would be a huge undertaking for Inditex‚
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Group ’s business model is characterized by a highly integrated vertical structure. In contrast to the model that has been adopted by competing international corporations‚ the Group handles all the processes required in the apparel industry—design‚ production‚ logistics‚ distribution to retail outlets—on its own. This model is based on a desire for structural flexibility and a belief that the customer should come first in every aspect of the company ’s operations. The main elements of this vertical
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ZARA Case Assignment 1. With which international competitor listed in the case is it most useful to compare Inditex’s financial performance? What do comparisons indicate about Inditex’s operating economics? Why? There are 3 key international competitors mentioned in the case: The Gap‚ H&M and Benetton. The Gap‘s production was internationalized with more than 90% of it outsourced outside of the United States. Its stores‚ however‚ were US centric. Therefore‚ The Gap’s strategy was to own
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