Zara's Supply Chain

Zara's Supply Chain

Case Study – Zara

Abstract
The competition of current clothing industry is very fierce and Zara has many competitive advantages in this competition. This paper will analyze on about how the information technology help Zara to make decisions and make their performance more speed. First, a case review from Harvard Business Review will be covered in the introduction to show an overview of current Zara’s business model. Second is the Michael Porter’s model analysis based on Zara that including three generic strategies and five forces. Third, some of IT applications are really help the Zara to make their business more efficient, the applications will be applied in the Enterprise Resource Planning (ERP), Supply Chain Management (SCM) will emphasize a speed supply chain for Zara, and Customer Relationship Management (CRM). Finally is about the relationship between Zara and Peter Drucker’s theory, Zara and Andrew McAfee’s theory, Zara and Hey’s theory. The last part will conclude where is Zara today and make brief recommendations.

Table of Contents

Introduction 4
Zara and Michael Porter’s Model 5
Generic Competitive Strategies Analysis for Zara 5
Five Forces Analysis for Zara 6
Suppliers Bargaining Power 6
Buyer Bargaining Power 7
Threat of New Entrants 7
Threat of Substitute 8
Industrial Competitors 9
The Value Chain of Zara 10
Enterprise Resource Planning (ERP) 11
Supply Chain Management (SCM) 11
Customer Relationship Management (CRM) 13
Zara and Peter Drucker’s theory 13
Zara and Andrew McAfee’s theory 14
Zara and Tony Hey’s Theory 15
Conclusion 16
Recommendations 16
Appendix 18
References 19

Introduction
Inditex is a largest fashion ground in Spain and owns 9 brands around the world, such as Zara, Massimo Dutti, Bershka and so on. Zara is the most successful brand for the Inditex group. The data from Harvard Business Review shows that Zara’s sale revenues is about 3,973M Euros (about 4,554 million dollars) and it...

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