Zara Case Paper Analysis
Running head: Zara Case Paper Analysis
1
Zara: IT for Fast Fashion Case Analysis
Sonal Bhagwat
University of Houston-Victoria
MGMT 6352-2011FA-25125
November 2011
Zara Case Paper Analysis
2
Table of Contents:
•
Abstract
3
•
Case Description
4
•
Goals and Strategy
5
-
Speed and Decision-making
5
-
Marketing, Merchandising, and Advertising
6
-
Information Technology
6
•
Problem Analysis
Firm-based-value chain model
o
•
Model Application
Implementation Opportunity Analysis
Evaluation of IS Implementation
7
7
7
9
12
-
Tangible Costs Analysis
12
-
Tangible Benefits
13
-
Intangible Costs Analysis
14
-
Intangible Benefits
15
-
Conclusion for Evaluation of IT Implementation
16
•
Conclusion and Recommendations
16
•
References
19
Zara Case Paper Analysis
3
Abstract
This case paper presents the business analysis of Zara, the leading and the profitable brand of
Inditex. The case paper’s objective is to discuss whether to update the current DOS/IT infrastructure and evaluate the effects of the upgrade. By using the Michael Porter’s value chain analysis, we can understand Zara’s core business model of vertical integration and assess the areas where IS will add value to the system. The case paper also presents the IS implementation opportunities and evaluating the effectiveness of the implementation. The case paper concludes by providing recommendations for updating the current OS along with its advantages.
Zara Case Paper Analysis
4
Case Description
Zara is one of the largest international fashion brands of Inditex. The company first opened in La Coruna in 1975, still lives by the simple idea of Amancio Ortega to link customer demand to manufacturing, and link manufacturing to distribution. The customer is at the heart of the business model. In 1985, Inditex became the holding company atop
1
Zara: IT for Fast Fashion Case Analysis
Sonal Bhagwat
University of Houston-Victoria
MGMT 6352-2011FA-25125
November 2011
Zara Case Paper Analysis
2
Table of Contents:
•
Abstract
3
•
Case Description
4
•
Goals and Strategy
5
-
Speed and Decision-making
5
-
Marketing, Merchandising, and Advertising
6
-
Information Technology
6
•
Problem Analysis
Firm-based-value chain model
o
•
Model Application
Implementation Opportunity Analysis
Evaluation of IS Implementation
7
7
7
9
12
-
Tangible Costs Analysis
12
-
Tangible Benefits
13
-
Intangible Costs Analysis
14
-
Intangible Benefits
15
-
Conclusion for Evaluation of IT Implementation
16
•
Conclusion and Recommendations
16
•
References
19
Zara Case Paper Analysis
3
Abstract
This case paper presents the business analysis of Zara, the leading and the profitable brand of
Inditex. The case paper’s objective is to discuss whether to update the current DOS/IT infrastructure and evaluate the effects of the upgrade. By using the Michael Porter’s value chain analysis, we can understand Zara’s core business model of vertical integration and assess the areas where IS will add value to the system. The case paper also presents the IS implementation opportunities and evaluating the effectiveness of the implementation. The case paper concludes by providing recommendations for updating the current OS along with its advantages.
Zara Case Paper Analysis
4
Case Description
Zara is one of the largest international fashion brands of Inditex. The company first opened in La Coruna in 1975, still lives by the simple idea of Amancio Ortega to link customer demand to manufacturing, and link manufacturing to distribution. The customer is at the heart of the business model. In 1985, Inditex became the holding company atop
References: Capell, K., (2008, Oct.20). Zara thrives by breaking all rules. BusinessWeek, (4104), 66, 1 Color Photograph Ferdows, K., Lewis, M., & Machuca, J. A.D., (2003). Zara. Supply Chain Forum: International Journal, 4(2), 62-66, 5, 3 Black and White Photographs, 1 Graph Kroenke, D. M., (2012). Experiencing MIS (3rd ed.), In Organizational strategy, Information systems, and Competitive advantage (p McAfee, A., (Spring2004). Do you have too much IT? MIT Sloan Management Review, 45(3), 18-22, 4p McAfee, A., Dessain, V., & Sjoman, A., (Sep2007). Zara: IT for Fast Fashion. Harvard Business School, 1-23 Thomas, R.J., (Jan2006). Uncovering Zara. Apparel Magazine, 47(5), 27, 3, 4, 1 Color Photograph