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
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I. Executive Summary Zara produces of-the-moment fashion and has developed a very successful vertically integrated company which can design‚ manufacture‚ and distribute garments to retail stores in as little as three weeks. Zara ’s target market is comprised of urban‚ fashion-conscious consumers who shop frequently for the latest trends. Currently under debate is a proposed upgrade to the POS system throughout the Zara chain. With over 550 stores‚ this would be a huge undertaking for Inditex‚
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ZARA IT for fast fashion TOPICS | PAGE NUMBER | ZARA IT for fashion- A Background | 3 | Implementation of IS in designing | 3 | Implementation of IS in purchase | 4 | Implementation of IS in manufacturing | 4 | Implementation of IS in distribution system | 5 | Implementation of IS in retailing | 6 | Implementation Issues with People | 7 | Implementation Issues with Procedures | 9 | Implementation Issues with Devices | 10 | Implementation Issues with Software and Database
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Zara - IT for Fast Fashion Management Information Systems EXECUTIVE SUMMARY The objective of this document is to discuss the issue of Inditex’s DOS-base IT infrastructure and how it affects Zara’s performance. Inditex is concerned about its IT infrastructure being antiquated and the possibility that hardware vendors will upgrade their machines leaving them incompatible with DOS. Because Zara’s core business model is vertically integrated‚ it could specialize in speed and efficiency and
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ZARA: Fast Fashion The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zara’s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy‚ which is supported by competencies in logistic management‚ design and information systems‚ allows the company to maintain less inventory and higher profit margins and is
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Zara : IT for Fast Fashion Zara is a leading brand in the fashion retail industry. It is a vertically integrated retailer‚ a pioneer of the Just-In-Time Inventory system. It becomes important to define the critical success factors for this industry in the analysis presented through the following three questions: 1. How can you differentiate Zara’s use of IT? Technology investment should be targeted at the points in the value chain where the impact is most significant. If we look at the value
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Case Analysis 1: Zara IT for Fast Fashion 1.) After analyzing the case Zara: IT for Fast Fashion and reviewing the company’s operational strategies‚ we can identify both positive and negative aspects within the organization. Major contributors to the company’s success include: a fined tuned value chain system; lean manufacturing‚ design and distribution; the ability read target markets and predict market trends. Conversely the most significant issues identified in the case include: (1) Poor IT
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flagship retail store of Inditex Group‚ a holding company that owns other fashion brands such as Massimo Dutti‚ Bershka‚ Pull and Bear‚ Stradivarius‚ Kiddy’s Class‚ and Oysho. The company still lives by the simple idea of Amacio Ortega to link customer demand to manufacturing and link manufacturing to distribution‚ which ultimately able to respond very quickly to the demands of targeted customers‚ who are young and fashion-conscious city dwellers. Inditex operates 1‚558 stores in 44 countries‚ of
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progress. I recommend we take the opportunity during the upgrade to add new functions and networking capabilities requested by store personnel to allow us to continue to cultivate our competitive edge though our rapid replenishment strategy in the fashion markets. Specified IT personnel will be appointed for Zara at La Coruna and new strict policies and procedures regarding technical advancement will be distinguished. Once the new OS is programmed and installed in each store‚ the new appointed IT personnel
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weeks of the emergence of the fashion trend (Mcafee et al.‚ 2004). This allows them to rely on their loyal customers to frequently visit their stores (Mcafee et al.‚ 2004). Zara’s competition includes The Gap‚ Benettons‚ and
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