Zara: IT for Fast Fashion Identification of issues: The case study‚ Zara: IT for Fast Fashion‚ focuses on the retail giant‚ Inditex‚ and how its largest retail chain‚ Zara‚ has been so successful with their business model of high fashion‚ product variation‚ low cost‚ speed‚ and flexibility. Several issues are identified in this case study. One glaring issue that is apparent relates to the fact that a long term Information Technology (IT) strategy does not exist. There is no formal
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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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INTRODUCTION Promotion has been defined as the co-ordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.(Ray‚1982) Promotion is an important part of any marketing strategy. You can have the best product or service out there‚ but unless you promote it successfully‚ no one will know about it. There are three basic types of promotional strategies a push strategy‚ a pull strategy or a combination of the two
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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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How is Zara organized with respect to its vertical integration and outsourcing decisions? What governance structure does it appear to follow? Support your conclusions with reference to details of the Zara and the Ferdows reading. Zara manufactures and distributes its products in small batches. Zara is vertically integrated as the company manages all design‚ warehousing‚ distribution and logistic functions. Zara outsources sewing of garments to an outside supplier. Zara controls the product it
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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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As completely as possible‚ sketch the supply chain for Zara from raw materials to consumer purchase. Zara makes about 40% of their raw material (fabric). The remaining 60% is outsourced from within Spain‚ mostly from the La Curuna. Designing of clothes at Zara is done by creative teams of over 300 professionals at the headquarters in La Curuna‚ Spain. They act on the information fed to them from the stores managers. The first stage in Zara’s production system is cutting of fabric. The design
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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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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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