Zara: It for Fast Fashion

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ZARA: IT for Fast Fashion
Önder BARLAS Executive MBA Student Boğaziçi University, Istanbul
Abstract: In 2003 Zara faced a problem whether to upgrade the operating system they used for their point-of-sale (POS) to a new Windows based one, or to continue using the stable and old one. This report aims to analyze the problem by conducting a SWOT analysis and offering a solution path best suited on Zara’s strategic position in the clothing industry.

1. Brief Information about Inditex and Zara Inditex is a global specialty retailer that designs, manufactures, and sells apparel, footwear, and accessories for women, men and children through its chains around the world. Inditex owns Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho. Over 80% of Inditex’s total employees are part of the retail sales force and 8.5% are in manufacturing, design, logistics, and distribution. The remaining 11.5% are part of the corporate headquarters. Zara is the most profitable brand of Inditex. It has opened his first store in 1975 in La Coruna in Spain. Today, La Coruna has become the central headquarters for Zara. The group is present in all continents: Europe, America, Asia and Africa. At the beginning of 2003, Zara operated 531 stores around the world. 2. Description of Zara’s Business Model Zara sells clothing for men, women and children. Zara’s target market is very broad because they do not define their target by segmenting ages and lifestyles as traditional retailers do. Zara targets young, educated people

that likes and is sensitive to fashion. As it has become globally standardized due to advances in communication, Zara uses this to their advantage by offering the latest in apparel on time. For that reason, 80- 85% of the garments that Zara offers globally are relative standardized fashionables. This is due to the fact that Zara’s marketing teams believe that a product that sells well in a fashion capital such as New York will most likely sell well in another

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