Zara: Apparel Q 1. Ans: Having a very responsible supply chain Zara is enable to keep store inventory to a minimum‚ and keep a fast turnaround of new products. This encourages customers to buy the product as soon as they see it in a store because the same product might not be there the next time and Zara does not always send stores the same product twice. Q 2. Ans : Zara does manufacture some clothing in Asia‚ but not to save cost. It is to save time in supplying the Asian market and to keep its
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Zara Summary Zara has successfully built a worldwide famous brand thanks to its premium locations as well as a unique management system of design‚ production and supply chain. Unlike other fashion brands‚ it takes Zara only 10 to 14 days from the time it designs new clothing until it arrives in stores.The case describes the implementation of the fast-fashion concept by Zara and analyzes the components of its flexible integrated business model . Furthermore it reports on the international expansion
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moment. The case later moves on to explain how Zara came to be what it is‚ and how they carried out their business model from its beginnings. The company Zara was founded in 1975 by its current major stockholder‚ Armancio Ortega‚ and was aimed at women‚ men‚ and children. It is affiliated to other clothing brands including Massimo Dutti‚ Pull and Bear‚ Bershka‚ Stradivarius‚ and Oysho‚ all part of the Infitex corporation. From its starting roots‚ Zara has managed to set themselves apart from their
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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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CHAPTER Marketing Channels Delivering 12 Customer Value PRE VIEWING We now arrive at the third marketing mix tool—distribution. Firms rarely work alone in creating value for customers and building profitable customer relationships. Instead‚ most THE CONCEPTS are only a single link in a larger supply chain and marketing channel. As such‚ an individual firm’s success depends not only on how well it performs but also on how well its entire marketing channel competes with competitors’ channels
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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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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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Case Memo: Zara Fast Fashion 1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Indeed comparing the financial performance of Inditex with the key competitors‚ Inditex was the most profitable company in terms of ROIC. In terms of revenues‚ income and size‚ H&M shows that it is the most interesting to compare. Inditex has a store number
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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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