Zara Case Study

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CONTENTS

1. Introduction 3

2. Zara as Company 4-5

3. Zara’s Model of Operation 6

4. Company’s Structure 6

5. Vertical Integration 7

6. Push and Pull System 8

7. Just in Time (JIT) 9-10

8. Kaizen: 11

9. Problems faced by Zara’s Operational Model 12

10. Conclusion 13

11. Some Recommendations 13

12. Appendix 1: Inditex Management 14

13. Appendix 2: Cycle Time Compression through quick response 15

14. Appendix 3: Zara’s Business Model 16

15. Appendix 4: Product Precommitments: Zara vs. Traditional Industry. 17

16. Appendix 5: Zara’s Supply chain 18

17. Appendix 6: Fish Bone Diagram 19

18. References 20-21

Introduction:

Company’s effective management can be important for the profitability of the company. Productive resources is the major part of effective management covers generally raw materials, human resources, equipment, resource planning and good manufacturing services or facilities which company delivers. This can give competitive advantage for operations effectiveness of the company. There can be failure in the company’s productivity due to lack in the operations management which could be negative part of the company’s part in this competitive world.

Defining Fashion:

Fashion can be defined differently due to difference in the point of views. So in general, Fashion can be looked as showing the way of acting differently than the society around us. If society appreciates it then they accept the same and it results in the development of the fashion trend. It can also be observed in the meanwhile that if society comes across the new trend then they accepts it and follows the same as looking different from the group is the priority of everyone in the society.

“Fashion expires, much the same way yogurt does”, The Inditex Chief executive Jose Maria Catellano comments. (Wall street Journal, 2001).

Zara has smartly understood the fashion trends and picked it up way smarter than others by creation of such a supply chain which reacts to the faster changing and developing fashion in the society. This reasoned for the popularity of the brand Zara across different continents like Europe, Asia and Africa etc. Zara has achieved they competitive advantage by developing distinctiveness in their supply chain management which inspired me to present the case study of Zara in operations management point of view.

This case study of Zara will navigate through different aspect of operations management. It will cover...
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