Zara Case Study

1012 words - 4 pages

ZARAInternal 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 If a design doesn't sell within a week, it's withdrawn from the shops, further orders are cancelled and a new design is developed. This is only possible because of a good communication between stores and headquarters.All stores receive goods twice a week and each shipment contains new articles, in this way they avoid having large inventories so less stock costs.Another core competence is their flexible business model. They're able to adapt to changes during a season, reacting to them by bringing new products to the stores in a very short time. It only takes Zara 2 weeks to develop a new product and distribute in which is enormously fast in comparison to other clothing companies.Their key to global competitiveness is their ability to adapt the offer quickly and precisely to the customers desires. Zara first wanted to grow in their own market by opening stores in each city in Spain with more than 100,000 inhabitants. After this they expanded to Portugal. After their expansion to Portugal Zara realised that they had to adjust their business model to suit the new international markets. They kept expanding to markets with minimal cultural differences from the Spanish market like South-America and almost the rest of Europe. They kept expanding to different markets. After deciding which country they are going to enter, Zara follows a pattern of expansion strategy known as 'oil-stain'. Oil-stain strategy is basically to dominate strongly in one place, then spread across the surface of the country. Zara does this by opening a strategic store, called the flagship store. This store is located in a strategic area with the purpose of getting information about the market and acquiring expertise. This will guide them in later expansion.The company has been able to shorten the PLC, which means greater success in meeting customer preferences. Every four weeks almost the whole product line is changed. Because of this, customers are more likely to visit the stores more often.Value chain: Zara controls most of the steps in the supply chain, designs and produces and distributes itself. Their clothing is manufactured for 50% in Spain, 26% in the rest of Europe, 24% in Africa and Asia. The outsourced activities are outsourced to fast producing low-cost countries.Their logistics system is based on software produced by the company's own team. It's very efficient which means that the time between between receiving and ordering (only in Spain) only takes 24hrs. So if one store experiences a lot of success on one product, they can easily order a whole new stock...

Find Another Essay On ZARA case study

Strategic management: Case ZARA Essay

864 words - 3 pages first chooseappropriate set of international competitors listed in the case and think about Zara'srelative "operating economics."We use the Business Strategy Diamond model to give an image of Zara's opportunities and threats in the external environment. This model will helps us to exam Zara's strategy with regard to competitors like Gap, H&M and Benetton.-Arenas: in the text is written that Zara chose for areas of production, for women, for men

Zara fast fashion case Essay

2235 words - 9 pages from existing stores to better understand the consumers and dynamics. Zara should use this insight to decide on the most appropriate business model for North America in case of a future expansion. According to the volume it expects from this market, Zara should analyze needs for distribution centers, transportation or production requirements. Inditex should also consider if other Inditex chains can be successful in North America. North America is

Zara & Spain

2017 words - 9 pages Fashion is an integral part of the culture in Spain. This is the home to famous designers, prestigious international fashion labels and some of the most famous models. Zara is one the most famous clothing brand in Spain; when people think and talk about Spanish fashion, Zara always comes to mind. They are a clothing line that belongs to Inditex, one of the largest distributions groups. They are known for delivering fast fashion at affordable

Zara: Global Expansion

1385 words - 6 pages Zara is one of the world’s largest fashion retailers; it’s a Spanish clothing and accessories retailer. It is the flagship company of Inditex, a holding company which includes seven other brands, and was founded in Artexio, Spain in 1975 by Amanico Ortega and Rosalia Mera. Just this year Forbes named Ortega the 3rd richest man in the world. “Zara contributes about 80% of Inditex's revenues, which have grown by 27% per year on average since 1998

Product Mix: Toyota ZARA

903 words - 4 pages prices. Zara Zara is a major Spanish based European high-street retailer, specialised in clothing and accessories. 1. A retailing marketing mix is a term which describes various elements required to execute retail marketing strategy (retail pricing, communication, store location, merchandise). Zara concentrates on a number of elements described below. The store locations are carefully chosen to be highly visible and accessible. The assortment in

Zara Fast Fashion

2198 words - 9 pages Zara is the run by Inditex, which is the largest Spanish corporation and the world’s largest fashion group. Zara was first opened by Amancio Ortego Gaona in 1975 on an upmarket shopping street in La Coruna, and has continued to expand at a very positive growth rate. By the 1970’s, there were half a dozen Zara stores in Galician cities, and by the year of 1990, Zara had opened in various countries internationally such as USA, Paris, and Portugal

Zara: fast fashion

3881 words - 16 pages expansion.Launching store manager training programAccording the case writes, store managers decide which merchandise to order and which to discontinue, coupled with transiting customer data and their opinions to Zara's design, providing potential demand sense for new products. It is store managers' acute observation that enables Zara to decide which items to be removed or replenished. Since store managers are the souls of retailer stores, it is important

ZARA: Fast Fashion

2018 words - 8 pages prototype, would develop the company brand awareness in the new country.In contrast to the advantages of their international expansion policy, the price of ZARA products in USA is more than double same products in Spain ;moreover, as the case stated, what worked with 1000 stores will not work with 2000 stores and the centralized supply chain might collapse or become a real problem . Accordingly, a competition might find a window of opportunity in that

Zara and supply chain

848 words - 4 pages Zara was founded in A Coruña, Galicia, Spain in 1975 by Amancio Ortega. In the beginning Zara clothes offered affordable replicas of expensive designer clothing. In the 1980s Zara’s founder Ortega began to make adjustments to Zara’s manufacturing, distribution, and design strategies to help create a responsive supply chain. These adjustments to Zara’s supply chain proved to be successful and allowed them to open retail stores in more than

Fashion Company: Zara and Inditex

1909 words - 8 pages . Benetton also poses a great threat to Zara. They have great production activities and expand well. “While Benetton was fast at certain activities such as dyeing, it looked for its retailing business to provide significant forward order books for its manufacturing business and was therefore geared to operate on lead times of several months.” (Zara Case) The Gap is another strong competitor of Zara with internationalized production while

SWOT Analysis: Zara´s Managers

646 words - 3 pages Inditex is the largest fashion retailer in the world, it has seven chains, they are Zara, Pull and Bear, Massioino Dutti, Stradivarius, Bershka Oysha and Uterque. SWOT analysis might help the executive to understand the opportunities and threats in the environment with the strengths and weakness of Inditex; thus help the executive to evaluate existing strategies and formulate the new master strategies (growth strategy, stability strategy and

Similar Essays

Zara Case Study

968 words - 4 pages )-the amount earned from an expenditure-of any such effort (i.e., what will we get for our money and how long will it take to receive payback?)3- Designers need to thoroughly test the system before deployment5-The Zara case shows two things - 1. IT can impact every single management discipline and 2. A firm need not be the highest IT spender in its industry to use IT effectively. Provide reasons and examples from the case that show why these two

Zara Fast Fashion Case Essay

3953 words - 16 pages and fashion accessories through 1,284 stores around the world under many brand names. Zara is an apparel chain owned at operated by the Inditex. It specializes in fast fashion and offers women's, men's and children's fashions at affordable prices.This report analyzes the case Zara: Fast Fashion and the problems associated. The report covers the detailed study of Zara's:•Situational Analysis, which includes factors such as the environment

Zara Case Essay

1988 words - 8 pages longer supported by Microsoft. Since DOS is a rather old system it is possible that the manufacturer of Zara’s POS terminals could change the design of the units so they are not compatible with DOS, leaving the company unable to acquire additional POS terminals for store expansion. To mitigate this problem, Zara can invest in a large supply of the terminals in case changes are made in the future. One POS terminal in each store is connected to a

Zara Case Analysis

1535 words - 6 pages 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