Zara is recognised as the one of the world’s largest fashion companies specializing in reagards with women, men and children apparel .It is considered as the top band and was operated under different multinational distribution group. It was founded in 1975 in Galicia Spain.Basically zara sells clothing ,accessories ,shoes and allows customer to do one stop shopping centre with all thier needs .The company’s target market usually applied to the upper middle-class ,trendy ,women ages 16-35 who enjoy exquisite and unique designs (Global logistics and supply chain Strategies )
Zara expand its business through out different other countries and regions after its great success in Spain and other European countries .Currently there are over 1100 store in 68 countries and same trend and approach is applied ina all stores of country or region (Global logistics and supply chain Strategies).Zara focuses on customer preferences and tastes in a distinctive way by providing short lead and quick turnaround times in all designs in a base of unique marketing approach. Zara has established an initiative called “fast fashion” base upon the clients desires and provide them in a large in a selective designs on a daily basis.These principles or startegies allow Zara to differentiate in sustaining acompetitive Advantage with other competitors .
Success of the Zara
Every company success depends upon the strong business model.Zara has become successful as of the unique business model. Zara has developed a strategic and unique supply chain management process that has put it ahead of its competitor over the years . Its emphasis is on ‘permanent innovation and low prices’ (Chukwuma, n.d.) Zara give more priority to their consumer and put them at the heart of the company in relation to their design,production ,distribution and sales (Dishman, 2012).Zara business model another important factors is speed at which they can get newest and latest fashion into the market. Usually the shipping system of the Zara is frequent .A store receive two separate deliveries in same week which results each store having few but a selective choice of the items that enables customer give a new and difference experience each time once they visit a store .Zara manage to receive their shipments in just 2-2.5 months while other competitors receive shipment usually 5-7 months after the order has been placed (Andrew Pearson, 2011).Other things that contribute to the success and uniqueness of Zara business model are :
Advertisement as zara only spent 0.3% sales profits on it ( (Andrew Pearson, 2011)
Sourcing more than half around 60% from its home country Spain and neighbouring Portugal and Morocco
Young innovative team are design collection not a group of designers
Clothes are cheaper in comparatively with competitors but in good quality
Good communication in regards of informing head office from retail managers of consumers buying preferences
Zara implements a Verical Maketing System which integrates stages of production and distribution under single ownership .It adopts a new line from designing and ending by worldwide distribution in less than a month (Kotler, n.d.). Zara brand image is globally considered as a luxuary fashion band in which adds an extra value when buying a product from this Symbolic retailer . (Sandra Streukens, 2011)
Competitive Advantage
Zara become the leading global clothing retailer as of its resources and capabilities .It gain significant advantage over its competitors .Zara competitive advantage is its flexible and responsive supply chain. It includes its “fast fashion “business style, unique customer oriented stores and different management style. This ‘fast fashion’ system depends on a constant exchange and supply of information in every part of Zara's supply chain. It starts from customers to store managers, store managers to market specialists and designers, designers to production staff, buyers to subcontractors, warehouse managers to
economics, is low cost, high control, and quick turnaround. Zara is just one of six retail stores operated by, Inditex, the parent company. Inditex owns Comditel, a subsidiary, which manages the dyeing, patterning, and finishing of gray fabric and supplied finished fabric to external as well as in-house manufacturers. By owning this company, Zara is able to maintain low cost production while being able to finish fabric in a week. Zara has the ability to obtain its main raw materials as well as…
Zara: IT for Fast Fashion | Individual Case Essay | | BUS 510 Management Information Systems Dr. Y. K. Mortagy | | Mengyang Chen | Fall 2012 | | Table of Contents Abstract 3 Case Summary 4 Business Analysis 5 Generic Strategy 5 Five Forces 7 Value Chain Analysis 9 Implementations of Porter Models 10 Solution Evaluation 11 Cost analysis 12 Benefit Analysis 13 Conclusion and Recommendations 16 References 17 Appendix 18 Exhibit 1 18 Exhibit…
------------------------------------------------- Zara: responsive, high speed, affordable fashion ------------------------------------------------- Strategic Management Prof Dr Peter Verhezen Quynh Lan Nguyen Engaging in irregularities is severely sanctioned in correspondence with article 34 of the Examination rules. We hereby declare that we have not engaged in any such irregularities. Student(s)’s signature(s) Table of contents Introduction 2 Challenges 2 Industry competition 3 Positioning…
Case # 4 – Zara Zara is the flagship company of Inditex, an international clothing retailer. Zara began its business as a small retail store in Spain founded by Amancio Ortega Gaona in 1975. In the following decades Zara has grown to nearly 450 store location in 29 countries by the year 2000. Zara consistently accounts for more than 80% of Inditex’s net sales as indicated by Figure 1; linking the success of Inditex to the success of the strategies of Zara. Figure 1 Inditex Net Sales by Concept…
ZARA: Fast Fashion The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zara’s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy, which is supported by competencies in logistic management, design and information systems, allows the company to maintain less inventory and higher profit margins and is…
1 Executive summary: Zara runs its software system for the point-of-sales (POS) terminals off of Microsoft DOS system, which Microsoft stopped supporting in 20001. Zara is Inditex’s largest chain store and Sanchez believes upgrading the system will not be beneficial to the company, as the system presently runs perfectly smoothly. (See Appendix 3 and table 1) The main purpose of this analysis is to explore effective avenues and present an alternative to the present system that will allow the company…
Case study report of Zara: It for Fast Fashion Table of Contents Executive Summary Part 1 Executive Summary ........................................................... 3 Issue Identifications Part 2 Immediate Issue ................................................................. 5 Part 3 Systemic Issue.................................................................... 5 Environmental & Root Cause Analysis Part 4 Qualitative Analysis .....................…
Introduction Company Background Zara, a well-known reputed fashion designing and manufacturing company has been declared most efficient and market responding enterprise in UK’s fashion industry. . Zara was founded in the year 1975. It is one of the major selling brands of one of the biggest fashion retailer "INDITEX". Zara is now available in 86 countries with total of 1, 763 stores worldwide Mr. Amancio Ortega, the creator and initial organizer of Inditex is appreciated for his strategic decisions…
Education Ltd. Company Case 19 Zara – the fast and furious giant of fashion One global retailer is expanding at a dizzying pace. It is on track for what appears to be world domination of its industry. Having built its own state-of-the-art distribution network, the company is leaving the competition in the dust in terms of sales and profits, not to mention speed of inventory management and turnover. Wal-Mart, you might think? No! Tesco, possibly? No! The company is Zara, the flagship specialty chain…
Outsourcing Zara Created by: Brenda Dyck 1> As Mr. Salgado, what will you do concerning the issue of upgrading the POS terminal? Will you upgrade to a modern operating system? Should the POS applications be rewritten to include any additional functionality? If so, what functionality? Response: Yes, I would upgrade both the POS terminal and modernize the operating system. With Dos being outdated and no longer being supported by the IT industry Zara has an unnecessary business risk. Zara supports…