Amanda Lopez March 15‚ 2014 Case Study #1 - Zara Zara is known for its stylish designs‚ many with a resemblance to the offerings of famous Italian fashion houses and all moderately priced. Despite this very recent popularity‚ the novel business model of Zara has gone virtually unnoticed for over 30 years‚ allowing Zara’s parent company‚ Inditex‚ to grow from zero to almost $20B in revenues. Zara was founded in 1975 and its parent company‚ the Inditex group went public in 2001. Within
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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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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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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 design‚ sourcing/ manufacturing
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ZARA-Internationalization Analysis When it comes to internationalization strategies‚ ZARA is the perfect case to look at. By putting in practice a set of different strategies‚ ZARA has accomplished great positioning worldwide and is one of the most recognized brands in the apparel market. Listed below are the main internationalization strategies ZARA has used to become one of the leading clothing brands in the world. Operating Filial When ZARA first started opening stores outside of Spain
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Case discussion ZARA: FAST FAHION 1) What is Zara’s basis of competitive advantage? How does it travel globally? At the heart of Zara ’s success is a vertically integrated business model spanning design‚ just-in-time production‚ marketing and sales. The key to this model is the ability to adapt the offer to customers desires in the shortest time possible. For Zara ‚ time is the main factor to be considered‚ above and beyond production cost. The group believed that vertical integration gave
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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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licensees ran its stores. To prove Zara has the prospect of sustainable growth in the international apparel market‚ it is important to understand and compare the financial differences of Inditex‚ its parent company‚ and its major competitor. The most interesting of Zara’s competitors for comparison is Hennes and Mauritz (H&M)‚ who as the case study states‚ “was considered Inditex’s closest competitor‚ [with] a number of key differences”. H&M differs from Zara because they outsource all of their
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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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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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