Zara Zara is one of the world’s most successful and dynamic apparel businesses. It is the flagship of Inditex, a vertically integrated retail and manufacturing group based in Galicia in north-west Spain. The first Zara store opened in the city of La Coruna in 1975, the brain child of Amanico Ortega, owner of a small clothing factory. Ortega was looking for a better way to run his business, one which would avoid the inefficiency of making clothes that might not sell. In the intervening decades
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MIS Chapter 3 ZARA: Fast Fashion from a savvy system 3.1 Introduction: -Zara is the largest pure play fashion retailer -does not believe in advertising -keep huge swaths production in house -went from 2.43b in 2002 to 20 billion in 2012 -fastest global expansion, the fashion industry has ever seen. Opening 1 store a day and now in 88+ countries -high quality but inexpensive. Gaps downfall -chose wrong styles colors - took 3 CEOS to straighten out Contract Manufacturing: a Lower
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ZARA The Zara boutique-clothing store on Calle Real in the northern Spanish city of La Coruna is buzzing. Customers have made the journey here on a rainy Saturday morning to see what new exciting styles are available this week. The red tank tops and black blazers seem to be a hit, but customers also really like the beige and bright purple ones too. Faces with this problem most fashion companies would normally have to spend months retooling and restocking their range. Not Zara, however. Each store
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The Zara boutique-clothing store on Calle Real in the northern Spanish city of La Coruna is buzzing. Customers have made the journey here in a rainy Saturday morning to see what new exciting styles are available this week. The red tank tops and black blazers seem to be a hit, but customers also really like the begie and bright purple ones too. Faced with this problem most fashion companies would normally have to spend months retooling and restocking their range. Not Zara, however, Each store manager
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Zara: Fast Fashion Case Study IEOR 153 Logistics Network Design and Supply Chain Management Niko Katigbak Regine Labog Kevin Leung Ruoyun Li Miranda Ortiz Michelle Papilla Spring 2011 Professor Kaminsky UC Berkeley I. Background Inditex, founded by Amancio Ortega, operates six different chains: Zara, Massimo Dutti, Pull&Bear, Bershka, Stradivarius, and Oysho. Since 2006 when the case was written, Inditex has added Zara Home and Uterque to its collection.1 The retail chains
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I . Background Inditex, founded by Amancio Ortega, operates six different chains: Zara, Massimo Dutti,Pull&Bear, Bershka, Stradivarius, and Oysho. Since 2006 when the case was written, Inditex hasadded Zara Home and Uterque to its collection. 1 The retail chains were meant to operate asseparate business units within a structure, which included six support areas and nine corporatedepartments. Each chain addressed different segments of the market, but all share the samegoal: to dominate their
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Zara is different from competitors in that it uses a vertically integrated model for its company. Therefore, the firm controls most of the activities in the supply chain. For instance, Zara relies on “local Spanish sourcing for a large proportion of garment manufacture.” The combination of the local garment manufacturers with Zara’s over 200 designers in house leads to a flexibility unrivaled in the high-end clothing industry. Zara produces an astonishing 11,000 different styles—or almost five times
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ZARA: IT for Fast Fashion With ZARA's fashion business expanding, Salgado and Sanchez have a critical decision to make on whether to upgrade the current, seemingly out of date IT system. Like other large clothing retailers, ZARA adopts a highly standardized business model for ordering, design, manufacturing and procurement across all product categories and regions. However, unlike most clothing retailers, ZARA's business model is based on fast delivery times
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According to the point of view of Salgado , Zara is getting bigger and bigger and its operating system getting more and more obsolete. Thus, it gives Zara to have a comparative advantage because for a strategic perspective. Although Zara's advantage over its competitors is not so much a result of IT leverage, the sustainability of its competitive edge might be at risk due to a lack in IT investment.The current assumption for the IT investment states about 18,000 hours. The Zara's staff devoted
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