Zara Operation Strategy
Contents
Introduction 2
Business Concept 2
Four Perspectives of Operation Strategy 2
Top-Down versus Bottom-Up Perspective 3
Top-Down Perspective 4
Bottom-Up Perspective 4
Market Requirement versus Operations Resources 4
Market Requirement Perspective 5
Operation Resources Perspective 5
Conclusion 5
Reference 6
Introduction
Zara is a Spanish fashion and accessories retailers that founded in 1975 by Amancio Ortega and Rosalia Mera (Ledesma, 2013). Zara designs, manufactures their apparel, footwear and accessories for men, women and sells up-to-minute “fashionabilty” at low prices throughout Europe, US and Asia Pacific (Bilsel, 2014) that clearly focused on one particular market ( Nigel Slack, Stuart Chambers, Robert Johnston, Alan Betts, 2006)
Business Concept
The basic business concept of Zara is to maintain its design process, production and distribution that will allow Zara to respond quickly to changes in consumer demand by shipping new products to over 600 chains of Zara’s retail stores worldwide every few days (Tinataja, 2011)
Zara 's success is based on a business system that reaches a speed of response to market demand that is not without precedent in the sector of fast-pace fashion clothes trend. Zara cycle of design, production and distribution is significantly faster than any of its major competitors. For most fashion retailers have a period of six months between the completion of a new design and up to delivery at the retail store. Zara may have a new design from the drawing process to retail stores in as fast as three weeks (Grant, 2010).
For example, it takes less than 2 weeks for a skirt from Zara’s team in Spain to be made and delivered to Paris or Tokyo – as much as 12 times faster than any competitors (CAvQM, 2013). Also, with shorter time notice, Zara can send fewer pieces of their clothes but in a variety of styles, and more than often they can easily cancel the lines that couldn’t sell so well to avoid
Introduction 2
Business Concept 2
Four Perspectives of Operation Strategy 2
Top-Down versus Bottom-Up Perspective 3
Top-Down Perspective 4
Bottom-Up Perspective 4
Market Requirement versus Operations Resources 4
Market Requirement Perspective 5
Operation Resources Perspective 5
Conclusion 5
Reference 6
Introduction
Zara is a Spanish fashion and accessories retailers that founded in 1975 by Amancio Ortega and Rosalia Mera (Ledesma, 2013). Zara designs, manufactures their apparel, footwear and accessories for men, women and sells up-to-minute “fashionabilty” at low prices throughout Europe, US and Asia Pacific (Bilsel, 2014) that clearly focused on one particular market ( Nigel Slack, Stuart Chambers, Robert Johnston, Alan Betts, 2006)
Business Concept
The basic business concept of Zara is to maintain its design process, production and distribution that will allow Zara to respond quickly to changes in consumer demand by shipping new products to over 600 chains of Zara’s retail stores worldwide every few days (Tinataja, 2011)
Zara 's success is based on a business system that reaches a speed of response to market demand that is not without precedent in the sector of fast-pace fashion clothes trend. Zara cycle of design, production and distribution is significantly faster than any of its major competitors. For most fashion retailers have a period of six months between the completion of a new design and up to delivery at the retail store. Zara may have a new design from the drawing process to retail stores in as fast as three weeks (Grant, 2010).
For example, it takes less than 2 weeks for a skirt from Zara’s team in Spain to be made and delivered to Paris or Tokyo – as much as 12 times faster than any competitors (CAvQM, 2013). Also, with shorter time notice, Zara can send fewer pieces of their clothes but in a variety of styles, and more than often they can easily cancel the lines that couldn’t sell so well to avoid