Zara Good Response Example

Topics: Supply chain management, Strategic management, Value chain Pages: 3 (1341 words) Published: April 22, 2015
CASE STUDY ANALYSIS
ZARA: IT FOR FAST FASHION

Introduction
The success of Zara in apparel manufacturing and retail business started from their belief that customers taste in fashion is hard to predict. Zara’s strategic intent to respond quickly and accurately to the fastchanging market demand has become the basis in building their core competency of highly responsive supply chain. This supply chain enables Zara to quickly capture the unpredictable market demand, shorten the turnaround production time and deliver the new design in only 3 weeks from conception to store. It can be seen that the highly responsive supply chain is fundamental in delivering distinctive value to each of Zara’s products.

Comment [SC1]: Excellent start

Zara’s supply chain relies heavily on the information exchange throughout every phases and people who involved in it. To make information transfer easy, Zara established operational procedures which involve the use of information systems. However, there are still challenges in regards to unreliable infrastructure and ineffective communication flow that hampering the information exchange. These challenges need to be strategically addressed as it is putting Zara’s core competency at risk. The purpose of this paper is to examine how information system can strengthen Zara’s core competency. Firstly, it will describe the core competency then examine the challenges that Zara face in cultivating this competency. Secondly, it will discuss the role of information systems in strengthen Zara core competency. Finally this paper will conclude by offering recommendation so that information system can be implemented to help the organization.

Comment [SC2]: Excellent – you could
integrate the final para here into the
earlier 2 to cut down on words.

Challenges in Cultivating the Core Competency
Zara’s preference for speed and responsiveness has been formulated since its inception. Zara tries to capture rapid change of customer’s demand...

References: Kling, R. 1999. What is Social Informatics and Why Does it Matter?.
Porter, M. E. 2001. Strategy and the Internet. Harvard Business Review.
Porter, M. E. & MILLAR, V. E. 1985. How Information Gives You Competitive Advantage. Harvard
Business Review.
Prahalad, C. K. & Hamel, G. 1990. The Core Competence of the Corporation. Harvard Business Review, 115.
Comment [SC6]: good
Comment [SC7]: Good
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