Fast fashion strategy 8 c Global distribution strategy 9 3.3.2 Strategy analysis 9 a Strategic Advantages 9 b Strategic Drawbacks 10 4.0 Recommendation 10 5.0 Conclusion 12 6.0 Reference 13 1.0 Introduction This report is about ZARA which is a global brand of clothing owned by the Inditex Group. It is the world’s third-clothing retailer‚ one of the world’s four major fashion chain (the other three are the United States of casual fashion giant GAP‚ the Swedish fashion giant H &
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Albert Sedaghatpour Individual Case Analysis-Zara 7/24/09 Introduction Zara is the flagship chain store of Inditex Group owned by Spanish tycoon Amancio Ortega. The group is located in Spain‚ where the first Zara store was opened. Zara has opposed the industry-wide trend towards turning fast fashion production to low-cost countries. Possibly its most atypical strategy is its policy of zero advertising; the firm opted to invest a portion of revenues in opening new stores instead. At the end of 2001
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new technology to expand productivity and increase competitiveness INTRODUCTION ABOUT ZARA • Established in 1975‚ Zara is the flagship of Inditex (Industria del Disen˜o Textil‚ SA). • Inditex has become the world’s second largest clothing retailer with 2‚692 stores spread across 62 countries worldwide by the end of January 2006. • In addition to Zara‚ which accounted for 66 percent of the group’s turnover in 2005 • Inditex owns seven other clothing chains: Kiddy’s
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MEMORANDUM TO: Board of Directors Stryker Corporation DATE: July 15th‚ 2011 SUBJECT: In-sourcing PCBs Project Recommendation The purpose of this memo is to disclose the business evaluation for the three proposed options regarding PCBs sourcing strategy. The analyzed options are: 1. To maintain the current basic sourcing policy but with improvements in the acquiring methodology of key materials. 2. To establish of a partnership with a single supplier to improve quality. 3
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6.0 STRATEGIC ANALYSIS & RECOMMENDATION FOR ZARA 6.1 PORTER 5 FORCES ANALYSIS 1. Barriers to entry: HIGH a. High fixed cost business requires economics of scale for sustained profitability b. High Selling & Administration Expenses which includes advertising‚ in-store promotions‚ etc.; up to 3.5% of its revenue‚ even though for Zara‚ the company is famous for spending minimum level of advertisements and commercials. However‚ recently the company announced that it invested €450 million in
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Zara competitiveness as highlighted in number 4 managed to travel globally successfully. As 55% of Zara revenues coming from abroad‚ one can see that Zara was successful in migrating its competitiveness globally. By adapting to each culture‚ Zara has managed to position itself differently in different market. Zara strategy of opening one store for information gathering in the initial phase of entering a new market is one of its key strength points. By starting with such "information gathering" store
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evolving to deliver customers satisfaction. Zara‚ the most profitable brand of Spain clothing retail group Inditex‚ has leveraged its unique strategy to achieve success and will be expected to maintain a sustainable growth in the fashion industry. Zara’s core competencies can be divided into four areas: process development‚ distribution‚ marketing and integrated business structure (referred to Appendix 1). Zara’s unique process development allowed Zara to produce in a shorter cycle time and more
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Developing innovative products/services for broad range of customers Zara creates a “fast fashion” concept which getting designs to customers quickly. It has more style than Gap‚ faster growth than Target‚ and logistical expertise rivaling Wal-Mart. 2. Significant investments in Marketing‚ Technology Development‚ Procurement & Customer Service ZARA takes just two weeks to get a new design from drawing board to store floor. ZARA invested much in developing its technology like e-business and ERP
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Perey‚ Lauren Alexis G. Pili‚ Alessandra Emile F. 3TE-4 OR CASE STUDY Zara Uses Operations Research to Reengineer Its Global Distribution Process 1. OR Approach A. Problem Analysis: “Fast fashion” is a term often associated with this Spanish clothing manufacturer and retailer‚ which has rapidly sped up the process of designing and delivering fashionable clothes throughout the world. Zara’s supply chain includes two primary warehouses located in Spain that periodically receive shipments
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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 other retailers
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