Zara's Approach to It Management
Zara’s Approach to IT Management
Spyridon Kapodistrias IT Management, Carnaby Street 20/2/2013 2186 words
Zara’s Approach to IT Management
1
Executive Summary
Zara is part of Inditex, the largest global clothing retailer in the world. Zara’s success is mainly attributed in its capability to provide at extremely low prices its garments which are line with the latest fashion trends and styles. How does Zara manage to attain this superior position in the intensive competition of the industry and what are its business objectives? Is her IT approach aligned with the business strategy and in which way IT systems contribute in enhancing the core competencies of the firm? In order to address these questions, the two main Porter’s models are utilized for assessing the external business environment and the key internal activities in the production and distribution chain; Porter’s competitive forces model and business value chain model. From this analysis, the IT systems employed are highlighted in order to assess Zara’s approach to Information Technology. Furthermore, it is stressed the applicability of firm’s IT approach to other consumer goods companies and, in more detailed, in a significantly different subcategory such as the motorcycle industry, represented by Harley-Davidson. Finally, some recommendations are provided regarding the upgrade of POS terminal systems in each Zara store and the financial breakdown of this investment is presented.
20 February 2013
Zara’s Approach to IT Management
2
Contents
Executive Summary..................................................1 Contents ...................................................................2 1. Introduction .........................................................3 2. IT Strategy Models Employed ..............................3 2.1 Porter’s competitive forces model ....................3 2.2 Business value chain model ...............................4 3. Zara’s IT Approach Analysis
Spyridon Kapodistrias IT Management, Carnaby Street 20/2/2013 2186 words
Zara’s Approach to IT Management
1
Executive Summary
Zara is part of Inditex, the largest global clothing retailer in the world. Zara’s success is mainly attributed in its capability to provide at extremely low prices its garments which are line with the latest fashion trends and styles. How does Zara manage to attain this superior position in the intensive competition of the industry and what are its business objectives? Is her IT approach aligned with the business strategy and in which way IT systems contribute in enhancing the core competencies of the firm? In order to address these questions, the two main Porter’s models are utilized for assessing the external business environment and the key internal activities in the production and distribution chain; Porter’s competitive forces model and business value chain model. From this analysis, the IT systems employed are highlighted in order to assess Zara’s approach to Information Technology. Furthermore, it is stressed the applicability of firm’s IT approach to other consumer goods companies and, in more detailed, in a significantly different subcategory such as the motorcycle industry, represented by Harley-Davidson. Finally, some recommendations are provided regarding the upgrade of POS terminal systems in each Zara store and the financial breakdown of this investment is presented.
20 February 2013
Zara’s Approach to IT Management
2
Contents
Executive Summary..................................................1 Contents ...................................................................2 1. Introduction .........................................................3 2. IT Strategy Models Employed ..............................3 2.1 Porter’s competitive forces model ....................3 2.2 Business value chain model ...............................4 3. Zara’s IT Approach Analysis
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