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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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 : 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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* 1. Chapter 8 STRATEGIC MANAGEMENT © 2003 Pearson Education Canada Inc. 8.1 * 2. LEARNING OBJECTIVES You should be able to: Explain the importance of strategic management Describe the steps in the strategic management process Explain SWOT analysis Differentiate corporate-‚ business-‚ and functional-level strategies 8.2 * 3. LEARNING OBJECTIVES (continued) You should be able to (continued): Explain what competitive advantage is and why it’s important to organizations Describe the five competitive
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products sold at the store take only about two weeks. d. Brand equity which is valuable to consumers 2. Substitutes: MODERATE a. Buyer propensity to substitute is high with several competitors to choose from (H&M‚ Uniqlo‚ MANGO‚ and many other fast-fashion brands) b. Low buyer switching costs and easily substitutable where a customer can walk into its neighbouring store instead of Zara c. Zara has gained substantial customer loyalty which has more visits per year than its competitor‘s store d
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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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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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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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Exam Fashion Flow Theories -- The Instrument of Meaning Exemplified as an instrument of meaning‚ the fashion system is a menagerie that takes meaning on an arduous cycle. One that sheds light on how its products are idealized‚ produced‚ adopted‚ and then finally discarded after serving its utilitarian or ideological purpose. Mass communication and other conduits of information dissemination play a role in channeling meaning from its origins to the consumer (McCraken 1986). The fashion system
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Problem Statement: In 2003‚ Zara’s CIO must decide whether to upgrade the retailer’s IT infrastructure and capabilities. At the time of the case‚ the company relies on an out-of-date operating system for its store terminals and has no full-time network in place across stores. Despite these limitations‚ however‚ Zara’s parent company‚ Inditex‚ has built an extraordinarily well-performing value chain that is by far the most responsive in the industry. Therefore the major problem to the company is to
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