6.0 STRATEGIC ANALYSIS & RECOMMENDATION FOR ZARA 6.1 PORTER 5 FORCES ANALYSIS 1. Barriers to entry: HIGH a. High fixed cost business requires economics of scale for sustained profitability b. High Selling & Administration Expenses which includes advertising‚ in-store promotions‚ etc.; up to 3.5% of its revenue‚ even though for Zara‚ the company is famous for spending minimum level of advertisements and commercials. However‚ recently the company announced that it invested €450 million in
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Case Study Fast Fashion Step 1 After two decades of fast fashion popularity‚ retailers and consumers have come to realize one of its biggest issues‚ its impact on the environment. Can fast fashion and sustainability work together? Step 2 The affordability of Fast Fashion is one of the main reasons for its high demand. Lack of authenticity or Intellectual Property. Fast Fashion has forced retailers to desire low cost and flexibility
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FAST FASHION Over the past few years there has been an apparent change in the fashion retail industry which is taking control of it‘s speed. ‘Fast Fashion’ is the new 21st century phenomenon currently dominating high-street retail. Stores like H&M and New Look have become the masters of the quick turnaround and are closing in on trends at such a speed that they can have fresh looks on their shelves for the customer‚ months before the original designer can get their garments shipped out of the
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Albert Sedaghatpour Individual Case Analysis-Zara 7/24/09 Introduction Zara is the flagship chain store of Inditex Group owned by Spanish tycoon Amancio Ortega. The group is located in Spain‚ where the first Zara store was opened. Zara has opposed the industry-wide trend towards turning fast fashion production to low-cost countries. Possibly its most atypical strategy is its policy of zero advertising; the firm opted to invest a portion of revenues in opening new stores instead. At the end of 2001
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Zara is a retailing chain of Inditexthat specializes in high-fashion at reasonable prices. In the last 12 months‚ Inditex’s stock price has increased by 50% despite bearish market conditions. The 50% increase is due to the investor expectations of Inditex’s growth. Inditex’s growth can be contributed to the decisions it has made in creating a vertically integrated centralized process. The centralization of its vertically integrated operations in Europe provided it with its competitive advantage;
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Zara’s Fast Fashion ANP LIM College – MBA Program Absrtact This paper was written for the purpose of researching and illustrating fast fashion strategies which include strategic integrated supply chain‚ manufacturing and sourcing methods. Fast fashion is explained as a system that involves more control over operations and customer “strategic behavior” by using the combined benefits of both the “quick response production capabilities” or “short production and distribution lead times”‚
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production to countries with lower labour and transportation costs and reduced lead-time. • Fashion companies are becoming more flexible and vertically organised‚ limited vertical integration being more frequent than complete integration. • Adoption of new technology to expand productivity and increase competitiveness INTRODUCTION ABOUT ZARA • Established in 1975‚ Zara is the flagship of Inditex (Industria del Disen˜o Textil‚ SA). • Inditex has become the world’s
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Zara Case Analysis Focused on manufacturing affordable yet high fashion concept apparels for women‚ men and child‚ Zara is one of the most popular fashion brands in the world now. It is also one of my most frequently visited boutiques. The success of Zara is not a miracle; it is the result of successful operation management. First of all‚ Zara has a special planning and design cycle. Zara hires 200 designers and make 11‚000 styles of apparels every year‚ which is about 5 times as many as comparable
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COMPANY OVERVIEW Zara‚ a trendy Spanish clothing retailer founded in 1975 by Amancio Ortega in La Couruna. It is a flagship retail store of Inditex Group‚ a holding company that owns other fashion brands such as Massimo Dutti‚ Bershka‚ Pull and Bear‚ Stradivarius‚ Kiddy’s Class‚ and Oysho. The company still lives by the simple idea of Amacio Ortega to link customer demand to manufacturing and link manufacturing to distribution‚ which ultimately able to respond very quickly to the demands of targeted
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Fast Fashion and its Advantages Fast fashion goes with the English adage - out of sight‚ out of mind! Fast fashion defines the different fashion trends in clothing‚ apparels‚ jewelry‚ accessories‚ etc.‚ that hit the market‚ hit their peaks and zoot out of sight before you even have time to make up your mind about whether you liked it or not! Here are the advantages of Fast Fashion. Veni‚ vidi‚ vici! - Julius Caesar Followers of fast fashion will agree that the above quote aptly epitomizes
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