Aalborg University BSc Economics and Business Administration 2012 October 24BSc Economics and Business Administration Mini Project The ZARA Case Study in Economics and The Organisation of Economic Activity The report has been prepared by: Inga Dragunaite ___________________________________ Justina Vaidziulyte ___________________________________ Kristina Kirilova ___________________________________ Aleksandar Varbanov
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1. Zara profile Zara is the most internationalized of Inditex’s chains which owned by Spanish tycoon Amancia Ortega. The first Zara store opened in 1975 and there are more than 1‚500 Zara stores around the world until now. It is claimed that Zara needs just two weeks to develop a new product and get it to stores‚ compared with a six-month industry average‚ and launches around 10‚000 new design each year. Zara has resisted the industry –wide trend towards transferring fast fashion production to
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competitive advantage and successfully compete in the market. What does a well-aligned strategy mean in 7s McKinsey model? In general‚ a sound strategy is the one that’s clearly articulated‚ is long-term‚ helps to achieve competitive advantage and is reinforced by strong vision‚ mission and values. But it’s hard to tell if such strategy is well-aligned with other elements when analyzed alone. So the key in 7s model is not to look at your company to find the great strategy‚ structure‚ systems and etc. but
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ZARA CASE STUDY: THE COMPANY WHERE EVETHING COMMUNICATES Paloma Díaz Soloaga and Mercedes Monjo ZARA CASE STUDY THE COMPANY WHERE EVERYTHING COMMUNICATES Paloma Díaz Soloaga. Head of Fashion Communication and Management. Centro Universitario Villanueva. Universidad Complutense de Madrid. SPAIN soloaga@villanueva.edu Mercedes Monjo. Responsible Textile International Marketing‚ Men’s Collection Carrefour. SPAIN This case has been published by the Journal HARVARD DEUSTO MARKETING
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Zara currently using Dos based operating system. Because of outdated system‚ Currently there are many problems occur in the company operations. Essential problems identified is store managers waste too much time on ordering‚ checking stock‚ inventory. POS system are not linked together which causes big problem of real time data. Further analysis shows Administrative systems. Zara is located in many countries with many currencies and a commercial application would not accommodate unless modified
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Zara Supply Chain Report By: A.H. C.L. H.L. S.H. X.W. Humble Beginnings In 1975‚ Amancio Ortea Gaona started Inditex Corporation in his first small shop in a remote town in Spain‚ Arteixo. Only 35 years later‚ it has emerged the largest apparel company in the world—Zara. Currently‚ Zara’s headquarters and two distribution centers are located in this small Spanish town. Zara broke a new path between the traditional high fashion and the mass fashion strategies; it provides
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Zara as being one of the major international clothing retailers stands out with its business and marketing model. Zara is also often one step ahead of the high-fashion ready-to-wear brands by providing similar garments made with less expensive fabric so prices much lower. Zara’s business model is characterized by flexibility‚ which is a production method that fulfils demand in order to manage quick turn-around‚ limited season stock and at a low price. The secret to Zara’s success is that‚ although
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countries have resulted in cheaper labor and inputs. This results in lower costs and multiple supplier options for retailers. Rivalry among competitors is a concern for apparel retailers. There are many large players of similar size. For instance‚ Zara has 4% market share in Spain‚ while H&M hit 10% in Sweden‚ only to see like-for-like sales declines‚ proving that there are tight constraints on gaining a dominant market share in the industry. The clothing products are fairly standardized‚ non-complex
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Zara is a Spanish clothing and accessories retailer‚ founded in 197 by Amancio Ortega. Zara has now became possibly the most innovative retailer in the world. By the end of the year 2011‚ Zara has reached 82 markets globally with a network of 1.830 stores. Zara’s secret of successful fast fashion business model is mostly about their responsive buyer driven supply chain. The customer plays an active role in the business model. Design and production activity begins with customer demand and retail
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Sale software. To upgrade Zara’s current POS system‚ Zara should keep the old POS system running until the new system is ready for cut-over. The first plan is to upgrade the Information Infrastructure to support the new system. Zara must first upgrade its company’s network infrastructure from modem based to broadband based. Zara must ensure the network connectivity is available at every store. Once the network infrastructure is in place‚ Zara should contract with Intuit-HP professional services to
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