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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distinguishes itself through its original strategy and its lightning growth: Zara. This apparel retailer belongs to the group Inditex‚ which also owns for example brands such as Massimo Dutti and Bershka. The company’s headquarters are in Corunna (Spain)‚ and was founded in 1975 by Amancio Ortega. The concept of Zara’s stores is to propose a wide range of clothes as well as underwear‚ accessories and shoes –and even recently‚ interior decoration with Zara Home. Stores can be compared to luxury shops
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1. Zara was developed with the initial goal to link customer demand to manufacturing‚ and link manufacturing to distribution. Goals such as short production times‚ decreased inventory risk‚ and great choice of clothes have helped formulate a unique value and shape Zara’s current business model. Zara’s business model is based on three aspects: Zara’s fundamental concept is to maintain design‚ production‚ and distribution processes that will enable Zara to respond quickly to shifts in the consumer
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ZARA Case Introduction This paper will define Zara’s key strengths and competencies in reference of its business model. Role of information system is also evaluated within its business operations‚ strategies and processes. In the end‚ consideration of upgrading the information system of Zara will be addressed. Strengths and Core Competencies of Zara With an increase of competition‚ companies started the assessment of core products‚ technologies and markets‚ which were
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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 following points draw
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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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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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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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Zara Case Analysis Zara’s Marketing Strategy • Produce a product that can adjust and fit multiple trends and can adapt quickly to new style. • Pride itself on its location (usually on the best street in big cities) as opposed to spending money on public advertisements. • Target a youthful and vibrant culture. • Have current and efficient technology in their stores. Target Market • Young‚ fashion- conscious city dwellers. • Rapidly changing style that needed to cater to people who were not
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Zara - IT for Fast Fashion Management Information Systems EXECUTIVE SUMMARY The objective of this document is to discuss the issue of Inditex’s DOS-base IT infrastructure and how it affects Zara’s performance. Inditex is concerned about its IT infrastructure being antiquated and the possibility that hardware vendors will upgrade their machines leaving them incompatible with DOS. Because Zara’s core business model is vertically integrated‚ it could specialize in speed and efficiency and
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