Zara

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TABLE OF CONTENTS

1. Introduction
2. Current Situation

2.1 Business Model
- Speed and Decision Making
- Marketing, Merchandising, and Advertising
- Financial and Growth
2.2 Operation
- Ordering
- Fulfillment
- Design and Manufacturing
2.3 Information Technology
- Approach and Organization
- Zara’s IT system supports
- Store (DOS &POS)
2.4 Competitive Advantage
- Speed
- Decentralized decision making
- Little Investment on IT
3. Problem
3.1 Inventory problem
3.2 Excessive resources & waste of human resources
3.3 System uncertainty (in terms of DOS operating system)
3.4 Integration problem
4. Solution
4.1 RFID (solution for 3.1&3.2)
4.3 Change in operation system and establish Network (solution for 3.3) 4.4 Case from DELTA Airline (solution for 3.4)
5. Conclusion
6. Issue
7. Reference List
1. Introduction
Inditex is one of the worlds largest fashion distributors, with eight sales formats -Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe - boasting 4.264 stores in 73 countries. The Inditex Group is comprised of over one hundred companies associated with the business of textile design, manufacturing and distribution. Thanks to its achievements and the uniqueness of its management model based on innovation and flexibility, Inditex is one of the largest fashion distribution groups. philosophy -creativity and quality design together with a rapid response to market demands- has resulted in fast international expansion and excellent response to our sales concepts. The first Zara shop opened its doors in 1975 in A Coruña (Spain), the city that saw the Group's early beginnings and which is now home to its central offices. Its stores can now be found in the most important shopping districts of more than 400 cities. Zara is present in 72 countries, with a network of 1.292 stores in prime locations of major cities. Its international presence is a testament to the idea that national borders are no impediment to sharing a single fashion culture. At Zara, design is conceived as a process that is closely linked to the public. Information from stores is constantly transmitted to a design team made up of over 200 professionals, informing them of our customers' needs and concerns. Zara has stores specialized in junior fashion called Kiddy’s Class. These stores are in Spain, Portugal, France, Italy and Greece. Zara is in step with society, dressing the ideas, trends and tastes that society itself has developed. That is the key to its success among people, cultures and generations that, despite their differences, all share a special feeling for fashion Zara's CIO must decide whether to upgrade the retailer's IT infrastructure and capabilities. At the time of the case, the company relies on an out-of-date operating system for its store terminals and has no full-time network in place across stores. Despite these limitations, however, Zara's parent company, Inditex, has built an extraordinarily well-performing value chain that is by far the most responsive in the industry. Therefore the major problem to the company is to decide whether it has to upgrade the present system and by doing so, risking the reliability they have with the current system or to continue with the present DOS based system which will not be compatible for future changes or improvements. 2. Current situation

2.1 Business Model

- Speed and Decision making
[pic]
Ortega, Castellano wanted to take advantage of the intelligence and trust the judgement of employees throughout the company, instead of relying on a small set of decision makers. So store managers were given much more responsibility than those at other large clothing chains. [pic]

A group of people at La Coruna called "commercials" had great discretion in deciding what clothes would be designed and produced. And another group of commercials, called store product teams and...
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