Situation Created in 1975 in Spain, ZARA, belonging to the Inditex Group, is the world’s third, and Spain’s number one apparel brand, setting up more than two thousands clothing chain in 62 countries around the world. The first Zara shop opened in 1975 in La Coruña, Spain, a city in which the group first began doing business and which is still its headquarters. ZARA is loved by the fashion young people with its excellent design and cheap price. 《Business Review》 assessed ZARA as “DELL in the apparel industry”
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Imitation – Zara faces a LOW threat of being imitated. Competitors could potentially imitate the quick response system and adapt their production line to trends in the market. Imitation is feasible, however Zara’s advantage comes from being a pioneer in the quick response system. At the time of the case competitors such as: H&M follow a different strategy. H&M produces cheap via outsourcing, ahead of time taking advantage of economies of scale. Zara is currently at the frontier of quick fashion, so it
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ZARA By Promode Gabriela Andrade Diego Farfán Cristina Neira Gabriela Muñoz SEARCH STAGE About INDITEX Industrias de Diseño Textil S.A (INDITEX) is a large Spanish corporation inside the fashion industry. This group is related with different companies that deal with activities involved in textile design, production and distribution. Amancio Ortega Gaona is the founder and chairman of INDITEX. INDITEX headquarters are located in Arteixo, a village in the province of
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ZARA Discussion Question 1: Why does Zara's business model appear to be better adapted to the recession than Gap's? Why and how does Zara's business model make it more resilient to business cycles? Zara’s business model is better adapted to the recession than Gap’s because of its lean inventory system. Firstly, the lean system allows Zara to offer a much more up to date line of fashions. With its lean inventory and its fast and effective logistics system, Zara is able to avoid the profit
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Note: Solve any 4 Case Study’s CASE: I Managing the Guinness brand in the face of consumers’ changing tastes 1997 saw the US$19 billion merger of Guinness and GrandMet to form Diageo, the world’s largest drinks company. Guinness was the group’s top-selling beverage after Smirnoff vodka, and the group’s third most profitable brand, with an estimated global value of US$1.2 billion. More than 10 million glasses of the popular stout were sold every day, predominantly in Guinness’s top markets:
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double that of Inditex, Inditex is much more profitable. 2. How specifically do the distinctive features of Zara business model affect its operating economics? Specifically, compare Zara with an average retailer with similar posted prices. Zara sources fabric, other inputs, and finished products from external suppliers. It has purchasing offices in Barcelona and Hong Kong. This gives Zara a competitive advantage towards the costs of goods sold, as it can purchase from both Europe and Asia according
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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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1.0 Introduction: Zara is the flagship chain store of Inditex group which is owned by Spanish tycoon Amancio Ortega. It’s a Spanish based company essentially known for its clothing and accessories which was founded in 1975 (Mo, 2015). Zara believes in following the fast fashion policy, unlike its competitors. The discipline in Zara’s supply chain management has played vital role in its success (Anonymous, 2005). Zara follows vertical integrated strategy where it has total control
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Case Study on Zara: IT for Fast Fashion I. Executive Summary After reviewing Zara: IT for Fast Fashion, it is concluded that the problem the company is facing is their need to upgrade from their POS (point-of-sale) terminal system that uses a DOS (Disk Operating System) to a POS terminal system that does not run on DOS. Upgrading would allow the company’s stores to be interconnected and instantly check the stock of a certain SKU in another store. It is recommended that this upgrade be made before
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discuss the ZARA case. My reasons are as followed. To begin with, ZARA has become a most popular fashion collection retailer in Taiwan, so it is interesting and instructive to understand how it can attain such success. Moreover, since I am an “IT” person, I would also like to figure out whether the information system plays an important role in ZARA’s supply chain. To start with my paper, I will first introduce some properties or concepts that had been discussed in class and were pertinent to ZARA.
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