Supply Chain Management – Case Assignment 2 Guidelines for submission The questions in this document should be answered for the Zara case‚ which can be found on pages 267 – 279 of the text book. The questions on page 294 should NOT be answered. Please keep your answers concise and to the point. Include the numbering of the questions. You are allowed to use bullet points. Use MS Word‚ 12 point font size‚ standard margins for A4 paper. Start the document with your student number and name on
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First of all‚ Inditex tries to tackle cannibalization by differentiating the brands mainly through the product‚ target markets (customer groups and countries)‚ store presentation and retail image. And in 2008‚ the percentage of the growth in sales compared to 2007 is 9%‚ it means that Zara has been successful by meeting the ‘risk of cannibalization’. Compare with the other competitors‚ Inditex has some advantages. For example‚ the first one is the repeat visits. An average high-street store in
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year. In addition‚ ZARA has more designers than competitors in order to create sophisticated and attractive products. b. Production ZARA prepares very limited volumes of new items to analyze customer’s reaction‚ lowering failure rates‚ approximately 1%‚ on new products. c. Marketing and Sales Central distribution centers control all of merchandise and ship twice a week to each retail store‚ which gives customer impressions of freshness of ZARA’s offering. In addition‚ ZARA limits production runs
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PLANETA ZARA | Production Management | Sara Landa Gonzalez | TABLE OF CONTENTS 1. Inditex Group …………………………………………………………………...2 1.1 Strategies …………………………………………………………………...2 1 Zara …………………………………………………………………...3 2.2 Business Model …………………………………………………………...3 2.3 Competitive advantage …………………………………………………...3 2.4.1 Short lead time …………………………………………………...4 2.4.2 Lower quantities …………………………………………………...4 2.4.3 More styles …………………………………………………………
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Research papers Zara : A. Clearance Pricing Optimization for a Fast-Fashion Retailer Summary: The research paper ‘Clearance Pricing Optimization for a Fast-Fashion Retailer’ talks about how Zara has increased its clearance revenues by approximately 6% by following a price optimization model. Zara uses minimal in-season promotions and offer continuous changing styles. However they were facing clearance pricing problem because it involved comparatively more different styles of unsold inventory
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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
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the Fashion World Upside Down 13 December 2007 Introduction ZARA is the flagship chain store for the Spanish Inditex Group owned by Spanish tycoon Amancio Ortega‚ who also owns brands such as Massimo Dutti‚ Pull and Bear‚ Stradivarius and Bershka. Today‚ Inditex is probably the world ’s fastest growing clothing retailer with over 3‚100 stores around the world in over 70 countries (more than four times the 2000 figure) the Zara format taking around 1‚000 of those stores. In March 2006‚ the
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ZARA Fashion 1) With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency? Note that while the electronic version of Exhibit 6 automates some of the comparisons‚ you will probably want to dig further into them? The four companies shown above have very different business models. Inditex owned much of the production
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1. How would you describe Zara’s financial performance? Since only Inditex historical financials are shown in the case‚ we took the financials of Inditex to describe Zara’s financial performance. It is reasonable to take Inditex financial data because Zara made up 76% of Inditex’s sales in 2001. Zara (Inditex) Financial Performance in 1996-2001 1996 1997 1998 1999 2000 2001 Liquidity Ratio (current ratio) 0.81 1.00 0.88 0.87 0.90 1.02 Leverage Ratio (debt/ equity) 1.98 1.84 1
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Zara Case: Fast Fashion from Savvy Systems a gallaugher.com case provided free to faculty & students for non-commercial use © Copyright 1997-2008‚ John M. Gallaugher‚ Ph.D. – for more info see: http://www.gallaugher.com/chapters.html Last modified: Sept. 13‚ 2008 INTRODUCTION The poor‚ ship-building town of La Coruña in northern Spain seems an unlikely home to a techcharged innovator in the decidedly ungeeky fashion industry‚ but that’s where you’ll find “The Cube”‚ the gleaming‚ futuristic
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