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; however, I believe it will also make it fail if it decides to grow substantially into other markets. Financial Analysis compare to competitors In comparing Inditex financial performance against its competitors, it is apparent that Inditex is performing extremely well compared to its competitors in terms of productivity of its workforce, net revenues and cost of goods sold. Their return on investment is also significantly higher than others. Success Factors The vertical integration of Zara was successful because of the following key tactical decisions: Ownership and control of production: Unlike many of Zara’s competitors, Zara decided not to outsource most of its production. Instead the majority of the production was performed in Europe. By having operations in close- proximity to its headquarters allowed for better and faster communication between functional areas for faster decision making. It also provided an added sense of quality to the product as the tags would be labeled with“made in Europe” rather than “made in China”. More importantly, Zara owned many of the fabric dying, processing and cutting equipment that provided Zara added control andflexibility to adopt new trends on demand. The added flexibility helped Zaraon two fronts: shorter lead times and fewer inventories. Because the production was done in house and just in time, Zara was able to shorten its lead to less than a month compared to the 4-6 months of other retailers. Zarawas able to catch a trend
Individual Case Analysis-Zara
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….
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 second largest clothing retailer with 2,692 stores spread across 62 countries worldwide by the end of January 2006.
• In addition to Zara, which accounted for 66 percent of the group’s turnover in 2005
• Inditex owns seven other clothing chains:
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….
Europe, Zara enjoyed an impressive compound annual growth of 26% from 1995 to 2000. Zara was an exceptional in the downturn market and created a standard for apparel industry.
Zara’s target customers were fashion- oriented young and middle age women and men, who came from middle to upper classes and had a rapidly changing style. To meet the needs and wants of this customer segment, Zara built its strengths to enhance its core competitive advantages:
Strengths and Weaknesses of Zara, and the….
Zara case paper Analysis
Zara: IT for Fast Fashion Case Analysis
This case paper makes a possible business analysis of Zara, A successful Spanish accessories and clothing retailer of Inditex (Parent Company). The case analysis objective is to discuss on its POS systems to be continued on DOS based operating systems or to upgrade. A brief analysis of Zara’s business model. The factors helped Zara to succeed with minimal infrastructure. An overall analysis of strength….
Running head: Zara Case Paper Analysis
Zara: IT for Fast Fashion Case Analysis
University of Houston-Victoria
Zara Case Paper Analysis
Table of Contents:
Goals and Strategy
Speed and Decision-making
Marketing, Merchandising, and Advertising
Firm-based-value chain model….
Term 3 – Supply Chain Management – Group 6
Case Analysis of
ZARA: Fast Fashion
This report is submitted to Prof. Devanath Tirupati in partial fulfilment of the course
requirements of Supply Chain Management at Indian Institute of Management Bangalore
5th March 2014
Disclaimer: Unless otherwise stated, any views or opinions expressed in this report are solely those of the authors.
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….
1. Which theory is the best representative of Zara’s (Index’s) internationalization?
Zara has applied the Uppsala internationalization model to their strategy, and even more than that. This theory shows that international activities require both general knowledge and market-specific knowledge. Therefore, the more understanding the company has in a specific market, the more value and succeed they can create. That is also exactly what Zara applied to their internationalization strategy during….
Case: Operations Strategy of Zara
Question 1: Zara has a variety responsive supply chain. (a) Does it offer a competitive advantage, and (b) how does this affect supply chain design and performance?
Zara’s responsive strategies improve the efficiency of information exchange in every level of supply chain; customers, store managers, designers and market specialists, production stuffs, subcontractors, buyers, warehouse managers, distributors, and so on.
As a result of efficient exchange….