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Zara: It for Fast Fashion Case

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Zara: IT for Fast Fashion Case

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|ISSUE |PRO |CON |ALTERNATIVE |
|POS System – Upgrading |1) Avoid future issue, such as|1) Cost lot of money and time |1) Purchase extra terminal to avoid |
| |software can not work with |to do the new system |software and hardware issue for now; |
| |hardware; | | |
| | |2) Takes time to find out if |2) Analyse/Test new IT system and |
| |2) New system can support more|the new IT system and operation|operation system at same time. |
| |function, such as check |system can work well as | |
| |inventory; |expected. | |
| | | | |
| |3) Place order more flexible; | | |
| | | | |
|Corporate Business |1) Response customer demand |1) Cost more to keep women, |1) Share the public resource for the same |
|Model – Centralized and |fast; |men, and kids three full |function task inside of company; |
|Decentralized Business Strategy | |channels | |
| |2) Higher margin; | |2) Use more online tools to communicate |
| | | |with customer online to get idea what is |
| |3) Low inventory; | |new demand and feedback on the current |
| | | |design. Such as Facebook, twitter... |
| |4) Save cost and keep quality | | |
| |in control to decentralized | | |
| |and outsource part of easy | | |
| |factory job | | |
|Marketing/Advertising and Product |Low Ad expense. |Cost more on store display and |Do more Marketing/Ad |
|Promotion | |operation cost in store. Such |on internet with low expense – Facebook, |
| | |as rental cost ... |twitter... |
|Inventory and Store Order Control |Simple, easy to use |1) can not check store |1) Add search and check inventory in new |
|System | |inventory at anytime/any store;|system; |
| | | | |
| | |2) Place order is not flexible |2) Add order online function in new |
| | | |system; |
| | |3) Commercials decide inter | |
| | |store transfer to balance |3) transfer stock and place store order |
| | |inventory. |more efficient according to store stock |
|Inventory and Store Order Control | | |and sales history; |
|System | | | |
|Continue...... | | |4) quick response to current demand. such |
| | | |as increase/decrease factory order; change|
| | | |to more attractive design |
|Price Points |Save label cost to print price|Product manager decide price, |Should be more flexible to response local |
| |in factory before send to |it may take time to low |market |
| |store |response market demand | |

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