Zara Case Study
ZARA Case
Introduction
This paper will define Zara’s key strengths and competencies in reference of its business model. Role of information system is also evaluated within its business operations, strategies and processes. In the end, consideration of upgrading the information system of Zara will be addressed.
Strengths and Core Competencies of Zara
With an increase of competition, companies started the assessment of core products, technologies and markets, which were close to their future and current capabilities of growth. Prahalad and Hamel (2003) stated that key strategic focus of firms was on the identification and exploitation of core competencies. Zara has been successful to bring people from different functions for information sharing about the markets and develop more innovative products. It impressively takes a short time span for transforming the ideas into their store offerings. Information technology is the main player in the success of Zara, which manages every aspect of the product design, production and distribution. Core “fast fashion” system also depends on the information exchange considering every aspect of supply chain system of Zara. The information flow is constantly managed in every department. Zara keeps the logistic as an essential capability for supply of products to merchandise at the right time.
Additionally, Zara’s strategy of providing “fast fashion” to customers has also diversified it from other competitors. Once the garment has been made, it is delivered to one warehouse and shipped to the stores within a week. Zara’s strategy is supported by the competencies in the design, IS and supply chain management (Hill and Jones 2008). Employees of Zara do not face hurdles of communication, instead, they use the enterprise data efficiently to increase the pace of coordination, get fast respond and speedy decision-making.
Role of Information System in supporting Zara 's operations
IS is the
Introduction
This paper will define Zara’s key strengths and competencies in reference of its business model. Role of information system is also evaluated within its business operations, strategies and processes. In the end, consideration of upgrading the information system of Zara will be addressed.
Strengths and Core Competencies of Zara
With an increase of competition, companies started the assessment of core products, technologies and markets, which were close to their future and current capabilities of growth. Prahalad and Hamel (2003) stated that key strategic focus of firms was on the identification and exploitation of core competencies. Zara has been successful to bring people from different functions for information sharing about the markets and develop more innovative products. It impressively takes a short time span for transforming the ideas into their store offerings. Information technology is the main player in the success of Zara, which manages every aspect of the product design, production and distribution. Core “fast fashion” system also depends on the information exchange considering every aspect of supply chain system of Zara. The information flow is constantly managed in every department. Zara keeps the logistic as an essential capability for supply of products to merchandise at the right time.
Additionally, Zara’s strategy of providing “fast fashion” to customers has also diversified it from other competitors. Once the garment has been made, it is delivered to one warehouse and shipped to the stores within a week. Zara’s strategy is supported by the competencies in the design, IS and supply chain management (Hill and Jones 2008). Employees of Zara do not face hurdles of communication, instead, they use the enterprise data efficiently to increase the pace of coordination, get fast respond and speedy decision-making.
Role of Information System in supporting Zara 's operations
IS is the
References: Cravens, D. (2009). Strategic Marketing (8th Ed.). Tata McGraw-Hill. Hill, C., and Jones, G. (2008). Strategic Management: an integrated approach, Houghton Mifflin Company. Mcafee, A., Dessain, V. and Sjoman, A. (2004). ZARA: IT for Fast Fashion. Boston: Harvard Business School Publishing. Motiwalla, L., and Thompson, J. (2009). Enterprise Systems for Management, Dorling Kindersley (India) Pvt. Ltd. Porter, M., and Miller, V. (1985). “How Information Gives You Competitive Advantage”, Harvard Business Review. Prahalad, C. and Hamel, G. (2003). “The Core Competence of the Corporation”, Harvard Business Review ----------------------- 1