Product classification of Zara • Most clothing are classified as an “durable good” as they are used up slowly‚ • Clothing doesn’t need to be disposed of after being worn once‚ but rather could be cleaned and reword until a tear within the seams or a stain kills it‚ or ultimately it goes out of style [pic] Product Lifecycle • Due to the clothing industry is mainly backed behind by what is “cool” or “hip” to date‚ clothing often needs to refresh its look in order to attract customers to purchase
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Introduction ZARA is one of the trendy garment retailers as an important brand in portfolio of Inditex. With development of technology and extension of market‚ ZARA has expanded to over 1‚500 stores in 44 countries‚ since founded at a Spanish town called La Coruña in 1975. In internationalization process‚ Zara employed various retailer formats‚ especially online shops‚ to complement weakness in traditional in-store purchase. Moreover‚ current development status of e-tailling is attractive for Zara to entry
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Competition Strategy ZARA-case 1.a: Strengths - Internalized cross-border functions‚ - Affordable prices - Quick response - Strong real estate network - Wider vertical scope than competitors‚ owned much of its production and most of its stores. - Galica’s geographical position from the prespective of transport costs - Originated design and finished goods in stores within four and five weeks in the case of entirely new designs and two weeks for modifications of existing products
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Design As the flagship brand of Inditex‚ Zara possesses a large amount of capital for investment in product design. Moreover‚ the young but capable designers in Zara have the sensitivity to capture the newest trendy style. They are the typical air traveler busy shuttle back and forth all kinds of fashion shows and trade fairs in Paris‚ New York‚ London‚ and Milan‚ from which they can get inspiration and recognize the fashion trend accurately. Therefore‚ Zara could rapidly design and release fashion-sensitive
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OPERATIONS STRATEGY FOR ZARA COMPANY Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy‚ through the reconciliation of market requirements with operations resources. It is also a tool that helps to define the methods of producing goods or a service offered to the customer. Zara Company deals in the fashion industry. Zara’s success in the apparel industry is attributable to
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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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The 2 1st-centur y Supply Chain Spanish clothier Zara t urn s the rules o f supply chain management on thei r head. The result? A superresponsive network and p rofi t margins t ha t are the envy o fth e industry. ire Fiilflllment by K asr a Michael A. Lewis‚ and Jose A.D. Machuca !04 W hen a German w holesale r suddenly canceled L1 big lingerie order in 1975‚ Amancio Or- tet;;a t hough t his fledgling clothing company might go b ankrupt . All his capittil was tied up in
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TYPICAL PRODUCT LIFE CYCLE • Sales decreases as the product moves over the timeline ZARA PRODUCT LIFE CYCLE • High fashion industry with latest designs and trends 5-6 weeks life cycle • The life cycle curves is shown as the graph above ZARA’S KEY FACTORS SHORT LEAD TIME LOWER QUANTITIES MORE STYLES • Keep up with the newest fashion trends more fashionable clothes • Zara only needs about 30 days to identify new trend and have the product available in stores
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Vivian Pankey Neisha Vitello Executive Summary Zara is the flagship fashion retail company under the parent corporation Inditex. First opened in Spain‚ Zara currently has a network of 1‚292 stores spread across 72 countries. The infrastructure Zara has built is a core competency. Their innovations to bring new fashion designs to market faster than competitors differentiates Zara from their rivals. Managers believe the allure of Zara is the freshness of its offerings‚ the creation of a sense
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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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