of ZARA: Fast Fashion This report is submitted to Prof. Devanath Tirupati in partial fulfilment of the course requirements of Supply Chain Management at Indian Institute of Management Bangalore Saketh Sabbineni Sankalan Prasad Mayur Shrikhande Tushar Bhargava 5th March 2014 Disclaimer: Unless otherwise stated‚ any views or opinions expressed in this report are solely those of the authors. Executive Summary Inditex‚ founded by Amancio Ortega‚ operates six different chains: Zara‚ Massimo
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Study of Zara – Internationalisation in China 1. Introduction and Background Amongst the motivations to strategise are to grow fast ahead of the competitors‚ grow in the line with the industry or to simply catch up and defend an existing status. Despite the challenges‚ threats and risks‚ the orientation of various firms are to expand‚ to reach and to penetrate new markets segments. The working title of the research is initially drafted as – Market Entry Strategy: Case Study of Zara – Internationalisation
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Brief Summary of Zara 2 How would you advise Salgado to proceed on the issue of upgrading Zara’s POS systems? 3 - Should the company upgrade the POS terminals to modern operating system? 3 - Should the company build in-store networks? 4 - Should the company give employees the ability to look up inventory balances for items in their own stores? 4 - Should the company give employees the ability to look up inventory balances for items in their other stores? 4 What is the Zara “business model”
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Page 1 of 2 ASSIGNMENT 1ST SEMESTER : STRATEGIC MANAGEMENT (STRM) BUSINESS MANAGEMENT 3 (BM303) CHAPTERS COVERED : CHAPTERS 1 - 5 DUE DATE : 3:00 p.m. 18 MARCH 2014 TOTAL MARKS : 100 CASE STUDY : ZARA CLOTHING INSTRUCTIONS TO CANDIDATES FOR COMPLETING AND SUBMITTING ASSIGNMENTS The complete ‘Instructions to Students for Completing and Submitting Assignments’ must be collected from any IMM GSM office‚ the relevant IMM GSM recognised Additional Tuition
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Introducción Zara es una de las principales empresas de moda internacional. Pertenece a Inditex‚ uno de los mayores grupos de distribución del mundo. El cliente es el centro del modelo de negocio‚ que integra diseño‚ fabricación‚ distribución y venta‚ a través de una red de tiendas propias. Todos los procesos‚ desde la creación del producto‚ comparten el mismo objetivo: dar al cliente la moda que espera.1 Las tiendas Zara‚ con 1417 2 tiendas en 69 países‚ proyectan desde los escaparates‚ la
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Case # 4 – Zara Zara is the flagship company of Inditex‚ an international clothing retailer. Zara began its business as a small retail store in Spain founded by Amancio Ortega Gaona in 1975. In the following decades Zara has grown to nearly 450 store location in 29 countries by the year 2000. Zara consistently accounts for more than 80% of Inditex’s net sales as indicated by Figure 1; linking the success of Inditex to the success of the strategies of Zara. Figure 1 Inditex Net Sales by Concept
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expected to show high resistance in response to it. Even though Zara has a decentralized decision making process‚ the retailer’s IS department exercises absolute autonomy on the IT infrastructure and design. The fact that “only one person had left the department” in the past 10 years further confirms that the retailer is suffering from cognitive and action inertia‚ and thus creating a huge barrier for such upgrade. Nevertheless‚ Zara should still perform such upgrade in the long run. Q1b. Should
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assurances by contract with Zara. The vendor also informed Zara that they are the vendor’s only customer still running DOS based applications. Store managers at Zara also utilize handheld PDA for inventory purposes and for ordering new inventory‚ the use of which are not necessarily as effective as alternate technologies. There is a risk that the terminal vendor will make changes in the future and as such‚ they will no longer make terminals that are DOC compatible‚ leaving Zara to face obsolescence in
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Zara’s financial performance? Since only Inditex historical financials are shown in the case‚ we took the financials of Inditex to describe Zara’s financial performance. It is reasonable to take Inditex financial data because Zara made up 76% of Inditex’s sales in 2001. Zara (Inditex) Financial Performance in 1996-2001 1996 1997 1998 1999 2000 2001 Liquidity Ratio (current ratio) 0.81 1.00 0.88 0.87 0.90 1.02 Leverage Ratio (debt/ equity) 1.98 1.84 1.97 1.98 1.80 0.75 Profitability
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Equity (CBBE) (Keller‚ 2008) Salience Zara is a well-known and ranked number one clothing brand in Spain‚ and it is the brand chain store of the Inditex Group owned which ranked number three in the world (INDITEX Group‚ 2012). Zara used fast fashion model – limited and variety. Zara resist a trend within the worldwide industrial- product manufacturing in low-cost area. That prove its product has a certain quality. Related to fast fashion‚ Zara has asserted that it only needs 2 weeks time to
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