integrated‚ it could specialize in speed and efficiency and the fast fashion trend. By assessing the pros and cons of the new IT infrastructure with Zara’s brand image‚ they determined that implementing the new POS networking system is beneficial for Zara because 1) it creates a more robust and scalable system that is more responsive to Inditex’s supply chain network‚ 2) it removes the risk of the system becoming obsolete and no longer compatible with vendor’s machine upgrade‚ and 3) it helps to maintain
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Zara is a retailing chain of Inditexthat specializes in high-fashion at reasonable prices. In the last 12 months‚ Inditex’s stock price has increased by 50% despite bearish market conditions. The 50% increase is due to the investor expectations of Inditex’s growth. Inditex’s growth can be contributed to the decisions it has made in creating a vertically integrated centralized process. The centralization of its vertically integrated operations in Europe provided it with its competitive advantage;
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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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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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ZARA INTERNAL ANALYSIS. Zara’s core competence is recognizing and assimilating the continuous changes in fashion. They’re very good at this because there’s a very good communication within the company. Store managers send information about the customer demands and new fashion trends to the headquarters on a daily basis. So if there’s a new trend‚ Zara is able to adapt their products or design new articles immediately. If a design doesn’t sell within a week‚ it’s withdrawn from the shops‚ further
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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: The Technology Giant of the Fashion World Introduction The term “fast-fashion” has come to revolutionize the world of fashion; this business model has created frenzy among competing retailers attempting to capture market share in this ruthless industry. Zara is the clothing and accessories retailer seated atop the industry; Zara is the flagship specialty chain of Spain-based conglomerate Inditex consisting of 1495 stores. Based in Arteixo‚ Galicia‚ and founded in 1975 by Amancio
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Learning Curve Theory is concerned with the idea that when a new job‚ process or activity commences for the first time it is likely that the workforce involved will not achieve maximum efficiency immediately. Repetition of the task is likely to make the people more confident and knowledgeable and will eventually result in a more efficient and rapid operation. Eventually the learning process will stop after continually repeating the job. As a consequence the time to complete a task will initially
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ZARA CASE STUDY [pic] Introduction The history of Zara started in 1975‚ when the first store has been opened in Spain. It has been followed by several other stores all over the world. The company’s owner‚ Amancio Ortega‚ accumulated 340 million Euros (according to 2001 datas)‚ which is a remarkable growth if compared with other companies. Zara’s brand has become popular because of its quality and efficiency. The secret of Zara is to understand the customer’s need and demands and respond
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• The demand curve is flatter (more horizontal) the closer the substitutes for the product and the less diminishing marginal utility is at work for the buyers. • The dependent variable in demand analysis is the quantity (the number of units) sold. The independent variables are price‚ income of buyers‚ the price of substitutes‚ and the price of complements. • An increase in income shifts the demand curve to the right for normal good. It goes to the left for an inferior good. • An increase in the
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