Zara - It for Fast Fashion
Zara - IT for Fast Fashion
Management Information Systems
EXECUTIVE SUMMARY
The objective of this document is to discuss the issue of Inditex’s DOS-base IT infrastructure and how it affects Zara’s performance. Inditex is concerned about its IT infrastructure being antiquated and the possibility that hardware vendors will upgrade their machines leaving them incompatible with DOS. Because Zara’s core business model is vertically integrated, it could specialize in speed and efficiency and the fast fashion trend. By assessing the pros and cons of the new IT infrastructure with Zara’s brand image, they determined that implementing the new POS networking system is beneficial for Zara because 1) it creates a more robust and scalable system that is more responsive to Inditex’s supply chain network, 2) it removes the risk of the system becoming obsolete and no longer compatible with vendor’s machine upgrade, and 3) it helps to maintain and improve efficiency of decentralization because information flow can be improved between stores, DC, and plant.
CASE DESCRIPTION
Zara is the most profitable brand of Inditex. It has opened his first store in 1975 in La Coruna in Spain. Today, it has become the central headquarters for Zara. This brand is present in all continents: Europe, America, Asia and Africa. Zara has developed a business model based on short deadlines, decrease quantities and a great choice of style and clothes. The company succeeds to make moderate prices with a large choice of new clothes every time. The success of ZARA is based on two principals: follow the trend to be able to sell garments at a moment where people want this kind of style, without using any advertisements as the concurrence does. They don’t want to convince people to buy their clothes but give the public what they desire at the moment. Secondly, the trust that had been given to employees allowed the company to delegate. They decide what clothes should be in stores and
Management Information Systems
EXECUTIVE SUMMARY
The objective of this document is to discuss the issue of Inditex’s DOS-base IT infrastructure and how it affects Zara’s performance. Inditex is concerned about its IT infrastructure being antiquated and the possibility that hardware vendors will upgrade their machines leaving them incompatible with DOS. Because Zara’s core business model is vertically integrated, it could specialize in speed and efficiency and the fast fashion trend. By assessing the pros and cons of the new IT infrastructure with Zara’s brand image, they determined that implementing the new POS networking system is beneficial for Zara because 1) it creates a more robust and scalable system that is more responsive to Inditex’s supply chain network, 2) it removes the risk of the system becoming obsolete and no longer compatible with vendor’s machine upgrade, and 3) it helps to maintain and improve efficiency of decentralization because information flow can be improved between stores, DC, and plant.
CASE DESCRIPTION
Zara is the most profitable brand of Inditex. It has opened his first store in 1975 in La Coruna in Spain. Today, it has become the central headquarters for Zara. This brand is present in all continents: Europe, America, Asia and Africa. Zara has developed a business model based on short deadlines, decrease quantities and a great choice of style and clothes. The company succeeds to make moderate prices with a large choice of new clothes every time. The success of ZARA is based on two principals: follow the trend to be able to sell garments at a moment where people want this kind of style, without using any advertisements as the concurrence does. They don’t want to convince people to buy their clothes but give the public what they desire at the moment. Secondly, the trust that had been given to employees allowed the company to delegate. They decide what clothes should be in stores and
References: Berhmani, S., Elmaalem, M., Gabreau, T., Grangier, A., & Khemiss, S. (2009). HBS Zara case study. Retrieved from Harvard Business School website: http://www.slideshare.net/koffman/zara-case-study-2780928?from=share_email Laudon, K. C., & Laudon, J. P. (2010). Management information systems managing the digital firm (11th ed.). New Jersey: Pearson Education, Inc. Ferdows, K., Lewis, M. A., &. Machuca, J. A. D. (2005). Zara 's secret for fast fashion. Retrieved from Harvard Business School website: http://hbswk.hbs.edu/archive/4652.html