2011 Zara Case Paper Analysis Table of Contents: • • • • o • • • 2 Abstract Case Description Goals and Strategy Speed and Decision-making Marketing, Merchandising, and Advertising Information Technology Problem Analysis Firm-based-value chain model Model Application Implementation Opportunity Analysis Evaluation of IS Implementation Tangible Costs Analysis Tangible Benefits Intangible Costs Analysis Intangible Benefits Conclusion for Evaluation of IT Implementation Conclusion and Recommendations
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ZARA’S OPERATIONS STATEGY, A CRITIQUE OF A BUSINESS CASE. 1.Excecutive summary. Operations management is in regard to all operations within the organization responsible for creating goods and services that organizations pass to their customers. This function is at the heart of all organizations, giving the means of achieving their aims and reason for their existence. These activities include: managing purchases, inventory control, quality control, storage and logistics. A great deal of focus in
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prices. (McAfee, Dessain, & Sjoman, 2007) Women clothing accounts for 60% of Zara’s revenue. It has built up a business model to sell the garments by following trends and style, with virtually no advertising and trust the choices of store managers which is called as "commercials" on what garments should to be in stores. (McAfee, Dessain, & Sjoman, 2007) Value Chain Model: Zara currently uses the value chain model (concept originally proposed by Michael Porter), which is helpful to access
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Coruna, Spain and is a leading retail outlet today. Zara’s sales make up 64.8% of its parent company Inditex group revenue and has stores in more than 86 countries. Because of its responsive and unique supply chain sales had increased by 10.1% from 2011 to 2012 fiscal year end. Zara has grown rapidly with a strategy to be highly responsive to changing trends while keeping prices affordable. Zara’s success is because of its responsive supply chain designed around customer needs based on real-time
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systems, and where they plan to go in the future. The case shows many strategies Zara has taken in order to become successful in Fashion industry, having a customer’s driven process, agility, retail power, and a successful supply chain. As in the case, managing a supply chain in the fashion industry is extremely difficult. Customers’ wants and trends are constantly changing, and suppliers have to be ready for those changes at anytime in order to work with Zara. Zara, one of the brands of Inditex
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Zara The case describes how Zara, operating out of the Galician port of La Coruña in north-west Spain has managed to become a benchmark for speed and flexibility in the garment industry. The case offers an illustration of a fast-response global supply, production and retail network. In 2003 Zara was the only retailer that could deliver garments to its stores worldwide (507 in 33 countries) in just fifteen days after they were designed. It could do that because of its unique systems for product
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Website on Marketing Issues Sunday, December 28, 2008 Zara operation management, A business case! 1- Executive Summary Operations management is in regard to all operations within the organization related activities including managing purchases, inventory control, quality control, storage and logistics. A great deal of focus is on efficiency and effectiveness of such processes. An example of successful operations management in retail sector is obvious in Zara business model which is elaborated
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The first Zara store opened in La Coruna, Spain in 1975. Today, Zara has grown from one small shop to a major apparel company, having 4,700 stores in 76 countries globally. Zara’s great success can be attributed to its very unique supply chain strategy. (Chopra & Meindl, 2013) Zara’s very successful supply chain strategy is based on the five fingers touching the factory and five fingers touching the customer philosophy. Basically, this means to have full control over all the merchandise
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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
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essay). “A fast fashion system combines quick response production capabilities with enhanced product design capabilities to both design latest products that capture the latest consumer trends and exploit minimal production lead times to match supply with uncertain demand” (Cachon and Swinney, 2011). Fast fashion is widely gaining recognition as being a key enabler for success for modern fashion retailers (Barnes and Lea-Greenwood, 2006). Fashion retailers such as ZARA, H&M and Benetton have adopted
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