Industry Analysis: Within the global apparel chain, profits are derived from “unique combination of high-value research, design, sales, marketing, and financial services that allow retailers, brand marketers, and branded manufacturers to act as strategic brokers in linking overseas factories” with markets (Gary Gereffi). Barriers to entry are fairly low. Not much capital is needed to enter the industry, as franchises and joint ventures are popular methods of establishing retail stores while keeping costs low. Buyers do not have much bargaining power. Since buyers are aware apparel companies are quick to do away with failed fashion trends, they usually purchase products as soon as they are available. Most fashion conscious shoppers come from middle to upper income families and therefore, have the discretionary income to spend on clothes. The threat of substitutes in the apparel industry is high. Customers do not incur critical costs or uncertainties when switching to a substitute and therefore, switching to another brand or continuing to wear clothes they already paid for is not challenging. Suppliers have little bargaining power with apparel retailing chains. Cascading labor efficiencies in developing 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, and not heavily differentiated. With three out of Porter’s five forces being of concern, the clothing retail industry is of average attractiveness.
Internal Analysis (VRI/N: Valuable, Rare, Inimitable, Non-substitutable): Zara’s strategic advantage lies in the
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….
ZARA CASE STUDY: THE COMPANY WHERE EVETHING COMMUNICATES
Paloma Díaz Soloaga and Mercedes Monjo
ZARA CASE STUDY
Paloma Díaz Soloaga. Head of Fashion Communication and Management.
Centro Universitario Villanueva. Universidad Complutense de Madrid. SPAIN
Mercedes Monjo. Responsible Textile International Marketing, Men’s Collection
This case has been published by the Journal HARVARD DEUSTO MARKETING….
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….
Zara Supply Chain Report
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….
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….
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….
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….
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….
ZARA in Indian and Chinese market
Zara is a very renowned brand for its latest designs and is among the top 100 best global brands in 2010 and its unusual strategy of zero advertising and instead invests the revenue in opening new stores across the world. The middle-aged mother buys clothes at Zara chain because they are cheap, while her daughter aged in the mid 20’s buys Zara clothing because it is fashionable. Clearly Zara is riding two of the winning retail trends firstly, being in fashion and….
Zara Thrives by Breaking All the Rules - BusinessWeek
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INNOVATION October 9, 2008, 5:00PM EST
Zara Thrives by Breaking All the Rules
How the Spanish apparel chain gets new designs into stores in two weeks while keeping
by Kerry Capell
ARTEIXO, SPAIN Many U.S. apparel retailers are choking on slow-moving inventories as consumers hold back
on spending. But Spain's Inditex, whose Zara chain pioneered cheap chic, is zipping ahead. The $13.8 billion