Zara case study

Topics: Supply and demand, Fashion, Fast fashion Pages: 9 (2296 words) Published: February 27, 2014
Coursework Header Sheet

OPER1027: Operations Mngt: Proc/Value Ch
Course School/Level
Case Study 1
Assessment Weight
J Whiteley
Submission Deadline

Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University's Regulations regarding Cheating and Plagiarism.

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5.2 Detailed description of assessment

Case study 1–Capacity Planning

Read the case study regarding capacity planning that is available on Moodle. Your answers should refer to: Relevant concepts and theories regarding the role of capacity planning in organizations and demonstrate your ability to utilize relevant information from the case.

Case Study 1 – Capacity Planning (1,250 words, due date: 25/11/2013)

Identify the key characteristics of fast fashion and discuss how these affect company approaches to capacity planning. How do fast fashion companies ensure that they can meet their demand? How does this approach contribute to Zara’s success?

Over the past few years the fashion industry has changed rapidly with every New Year came newer fashion. Competition has been fiercer than ever in terms of costs, quality, dependability and innovation. In this case study you’ll find a clear discussion and logical explanation about Zara’s day to day operations, why and how have they become as successful as they are today. What makes them different from other companies and how they meet there and their customers demands in such a demanding and competitive industry.

Zara is a Spanish owned fashion label and fashion chain stores established in 1975 by the group known as Inditex owned by Amancio Ortega, it sells up to the minute fashion products in men women and kids wear at affordable prices in stores that are clearly focused on one particular market.

What is Fast Fashion?
Fast fashion is a contemporary term used to affiliate with clothing that is based on most recent fashion trends. It is also a way of saying that designs move from catwalk quickly in order to capture current fashion trends. It emerges in the context of that the fashion cycle is moving faster than ever before and at least 10 times faster than it has been 10 years ago.

Identify the key characteristics of fast fashion and discuss how these affect company approaches to capacity planning? +
How does this approach contribute to Zara’s success?

How do all these factors contribute Zara’s success is the main question. Firstly Zara have taken speed and responsiveness into account they have changed the way they operate in there industry where designing, distribution and delivery requires no longer than six months. This proves that Zara can get the latest trends into their store within 6 weeks, which exceeds the capabilities of its competitors as H&M and Benetton and many other fashion companies take longer. This capability allows Zara to achieve their strategy of expedited response to consumer demand and keep up with the latest fashion. The advantage of this process is the quicker Zara can get a new design into their store the higher they will sell the product depending on the demand which will lead to more supply initially allowing company to boost profits and recognitions of their demanding products.

Zara’s unique characteristics are very accurate. Instead of them predicting the demand Zara observes the trend and identifies what is selling, for example there designers continuously track customer’s...

References: Zara and Benetton: Comparison of two business models. 2010. [e-book] p. 10. Available through: Google Scholar [Accessed: 25 Nov 2013].
Fast Zara, F. 2013. Fast Zara, Fast Fashion - Research Paper - Wendyrosa. [online] Available at: [Accessed: 25 Nov 2013].
Netessine, K. and Netessine, K. 2013. Business Model Innovation is the Gift that Keeps on Giving. [online] Available at: [Accessed: 25 Nov 2013]. 2013. Academic Writing Samples: ZARA Case Study Solution. [online] Available at: [Accessed: 25 Nov 2013].
Mohsen, M. and Gammoh, S. 2010. Performance evaluation of reverse osmosis desalination plant: A case study of Wadi Ma 'in, Zara and Mujib Plant. Desalination and Water Treatment, 14 (1-3), pp. 265--272.
Whatley, V. 2011. Case Analysis of Zara: IT for Fast F ashion. [e-book] London: pp. 33-43. [Accessed: 25 Nov 2013].
Fisher, M., Hammond, J., Obermeyer, W. and Raman, A. 2008. Making Supply Meet Demand in an Uncertain World. [e-book] America: pp. 22-67. [Accessed: 25 Nov 2013].
Deschamps, M. 2013. Fast fashion shifts supply chain focus. [online] Available at: [Accessed: 25 Nov 2013]. 2013. How Zara Really Grew Into the World s Largest Fashion Retailer (IT Best Kept Secret Is Optimization). [online] Available at: [Accessed: 25 Nov 2013]. 2013. Demand and supply Price business studies and business english | The Times 100. [online] Available at: [Accessed: 25 Nov 2013].
Legale, F. 2013. Fast Fashion | Femme Legale™. [online] Available at: [Accessed: 25 Nov 2013].
Solutions, Z. 2013. Zara Fast Fashion Case Study - Solutions - Term Paper - Karthigeyank05. [online] Available at: [Accessed: 25 Nov 2013].
Netessine, K. 2013. Business Model Innovation is the Gift that Keeps on Giving. [online] Available at: [Accessed: 25 Nov 2013].
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