multinational retailer and manufacturer. At the beginning of 2003, Inditex operated 1,558 stores in 45 countries, of which nearly 550 were part of the Zara chain. The customer is at the heart of their unique business model. Quick and accurate response to shifting consumer demands is the goal of Zara. The main objective of this case paper is to analyze Zara’s current business model, focus on issues they are facing and provide solution to overcome them. This case analysis also provides Zara with suggestions
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decision maker to evaluate the existing DOS/IT software and to evaluate the need, opportunities, effectiveness, risks and potential advantages to upgrading the IS systems. Introduction: Zara a Spanish clothier has turned the rules of the supply chain management to create a super responsive network and profit margins that are an envy to the fashion industry. Zara operates on a vertically integrated business model. The existing software applications have been developed in house and have provided the
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consumer-driven industry. Also, globalization and new technologies have allowed consumers to have more access to fashion. As a result, consumers are changing, competition is fierce, and companies are evolving to meet these demands. Zara, a Spanish-based chain owned by Inditex, is a retailer who has taken a new approach in the industry. With their unique strategy, Zara has the competitive advantage to be sustainable. In order to maintain that advantage and growth they must confront certain challenges and
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exclusivity and urgency to buy. The stores themselves are sited in fashionable prestige locations; their interiors are smart, fresh, modern and regularly refurbished to retain their contemporary appeal. Zara is a design-sensitive, but not designer-led operation. The company does not seek to set new trends itself, just to be a very fast and flexible follower. It employs a large cadre of design staff who interpret the latest in international fashion trends, often identified by “cool hunters” who glean inspiration
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counterintuitive moves are part of a recipe for success that’s beating the pants off the competition, and it has turned the founder of Inditex, Amancio Ortega, into Spain’s wealthiest man and the world’s richest fashion executive. Figure 3.1. Zara’s operations are concentrated in Spain, but they have stores around the world like these in Manhattan and Shanghai. The firm tripled in size between 1996 and 2000, then its earnings skyrocketed from $2.43 billion in 2001 to $13.6 billion in 2007. By
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has reduced and we expect instant product availability and gratification. It should be obvious from this that the supply or logistics system that gets products from production through retailing to consumption has also needed to be transformed. Physical distribution and materials management have been replaced by logistics management and a subsequent concern for the whole supply chain (Figure 1.1). This logistics transformation derives from cost and service requirements as well as consumer and retailer
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Class- with 3.147 stores in 70 countries around the world. Inditex Group is comprised of over one hundred companies associated in textile design, manufacturing and distribution. The achievements of the company and the uniqueness of its management model, which is based on innovation and flexibility, made Inditex one of the largest fashion distribution groups in the fashion industry. The company’s fashion philosophy -creativity and quality design together with a rapid response
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Individual Assignment 1 Zara: Fast Fashion 1. + 2. Zara’s business and operating model is focused on speed and the need for fast fashion, I think a word that would classify it is mass customisation. It is targeted at young fashion and price conscious urban dwellers and is built on a vertically integrated system focussed on demand and supply. Zara is constantly updating its design and production base to deliver exactly what the client wants based on their buying habits and the latest trends
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1. Zara’s Business and Operating Model: Zara is the most profitable brand of Inditex and in 2003 is contributing to 73.3% of group sales. Its business model is developed on short deadlines, small quantities and rapidly changing trends. Zara links back end production to front end retailing run by adapting to changing customer demands rapidly. Zara never produces “classics”, all of their fashion is trendy, they follow three main concepts a) The customer buys immediately as the current stock will
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ZARA COMPANY PROFILE Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia, and founded in 1975 byAmancio Ortega and Rosalía Mera. It is the flagship chain store of the Inditex group, The world's largest apparel retailer, the fashion group also owns brands such as Massimo Dutti, Pull and Bear, Uterqüe, Stradivarius and Bershka. It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and
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