Essays on Zara

Part 1: Introduction Zara’s story begins in the Spanish coastal city of Arteixo in 1975. Being the crown jewel in the array of brands part of Inditex Corporation (Industrias de Diseño Textil), Zara nurtures a highly intimate relationship with its customers where Zara’s designers respond instinctively to their changing needs, reacting to the latest trends and constant feedback received across its collections. To further enhance the quality of customer service, Zara stores include a stunning combination of technology, using cutting-edge…...

According to the International Trade Statistics 2010 published by the World Trade Organization, in 2009, the international export in clothing could account for $316 billion dollars, approximately 2. 6 percent of the world’s merchandise trade. Without doubt, the fashion business is being affected by the Globalization. The retailing as well as the sourcing activities are greatly globalized nowadays. When formulating the sourcing strategies, due to the complexities of global situation, the brands often encounter challenges about how and where to…...

Political ZARA has beaten this trouble by restricting its production network activities to its nation of origin and neighboring countries. Along these lines, it has limited the danger from political disturbance. In nations where political unrest is standard, organizations are constantly under a danger. In addition, government approaches also can ruin the round of brands on the off chance that they are not well disposed. In this way, an inviting political condition is a standout amongst the most imperative necessities…...

1. Is Zara's use of IT different from similar firms? First, I would like to highlight Zara’s business model and their business practices which are different from its competitors, from which I will draw comparison on use of IT among these firms. Zara’s business model and business idea are different from many of its peers. As mentioned in the case - “The original business idea was very simple. Link customer demand to manufacturing and link manufacturing to distribution. That is…...

The core concept of Zara's business model is they sell "medium quality fashion clothing at affordable prices", and vertical integration and quick-response is key to Zara's business model. Through the entire process of Zara's business system: designing, sourcing and manufacturing, distribution and retailing, they presented four fundamental success factors: short cycle time, small batches per product, extensive variety of product every season and heavy investment in information and communication technology. These four elements are involved in every aspect of the…...

Zara specializes in inexpensive fashions for women and men between the ages of 16 and 35. In keeping with the spirit of that demographic, Zara moves quickly. Like many apparel retailers, it has two seasons—fall/winter and spring/summer—but selections change frequently within those periods. Items spend no more than two weeks on the shelf before making way for new merchandise, and stores are replenished twice a week. With annual growth of around 20 percent in both sales and number of stores,…...

Abstract This case essay offers a service analysis on Zara-- the most lucrative and widely known fast style brand name under the world's largest fashion supplier Inditex Group. The analysis will examine Zara by utilizing Porter Designs, taking a look at its Supply Chain Management and defining its present IT obstacles. Then, the essay will go over the costs and benefits of updating to the new OS systems. The essay will provide recommendations on whether Zara must update its POS…...

Zara is a very big clothing chain from Spain. The chain was founded in 1975 by Mr. Ortega, and it now has more than 1.000 stores in approximately 63 countries – so it is a very big chain. However Zara has its biggest market in Spain, where they have 364 stores in total. They sell fashion clothes of a fairly good quality to reasonable prices – this also means that they have a broad target group, which we believe to…...

Global apparel chain are characterized by unique combinations of high value research, design that they have been pursued for quite some time. Almost more than 30% percent of world production apparel was exported. Lots of company making their manufacturing production on the developing country, because of some factor of the cheap labor intensive. Some country are keen to supply their product to the country that has a very low quote restrictions like China supply their product to Japan where there…...

Zara History of Zara Marked as the first prestigious venture of the Inditex group the first store of Zara, the chain of Spanish fashion stores came into reality on central A Coruna Street in 1975. In 1985, Amancio Ortega integrated Zara in a new holding company, Industria de Diseno Textil, INDITEX S.A. The Zara fashion concept was well received by the public later in 1976, allowing it to expand its network of stores to the other main Spanish cities. During…...

After Zara's first Australian store in Sydney reportedly sold out 80% of its stock (worth $1.2 million) in its opening day in 2011, sales figures in 2014 have revealed slowing sales momentum and increasing costs. Using the Resource-Based View of the firm (RBV) (Barney, 1986, 1991), critically evaluate the competitiveness of Zara within the Australian retail industry. The resource based view revolves around the notion of a firms tangible and intangible resources and capabilities allowing the firm to sustain a…...

From the perspective of Classic management, since it’s mainly focused on achieving goals and discovering the best way to manage and perform tasks, and how they are achieved, like productivity, efficiency… I think Zara is one of the greatest in this field. They keep improving in it’s market with new releases, new trends, having new patterns and designs every 15 days, this is what makes Zara so famous, also because their looks were copied from great designers and they has…...

Zara's core competence is recognizing and assimilating the continuous changes in fashion. They're very good at this because there's a very good communication within the company. Store managers send information about the customer demands and new fashion trends to the headquarters on a daily basis. So if there's a new trend, Zara is able to adapt their products or design new articles immediately. If a design doesn't sell within a week, it's withdrawn from the shops, further orders are cancelled…...

Zara's responsive methods enhance the performance of info exchange in every level of supply chain; customers, shop managers, designers and market specialists, production stuffs, subcontractors, buyers, storage facility managers, distributors, and so on. As an outcome of effective exchange of info, Zara can increase product turnover rate and delivery speed of products, designs, and trends, so each shop can get brand-new products simply in time. Each store is likewise able to reduce inventory danger, that makes Zara to use products…...

Zara has several advantages when it expands its operation in global markets. Firstly, Zara has always promoted its products via its stores and it had its own centralized distribution center which will translate to low advertising and logistics costs when it enters new markets. As opposed to its competitors who would invest heavily on advertising and organize a distribution system. Secondly, apparel retailing was witnessing increasing concentration which would benefit Zara when it entered new markets. Thirdly, there was more…...

Would Zara’s Model Work for Other Retailers? Why or why not? Zara has overturned the tables of supply change management by following the three principles – closing the communication loop, sticking to the rhythm across the entire chain and leveraging their capital assets to increase supply chain flexibility (Ferdows, Lewis & Machuca, 2004). These three principles work wonders at their individual levels. They do so by making the data transfer easy and transparent from shoppers to designers and production staff…...

Zara makes about 40% of their raw material (fabric). The remaining 60% is outsourced from within Spain, mostly from the La Curuna. Designing of clothes at Zara is done by creative teams of over 300 professionals at the headquarters in La Curuna, Spain. They act on the information fed to them from the stores managers. The first stage in Zara’s production system is cutting of fabric. The design is then sent for sewing by one of several hundred local cooperatives.…...

INTRODUCTION This academic paper analyzes the marketing aspects and theories that are being applied to the company Zara, and analyzes and evaluates the marketing performance of the company. The report will cover the following topics: 1. The production of a concise external marketing audit by using PESTEL and SWOT analysis and Porter’s five forces, and the identification of key issues facing the organization arising out of the audit 2. The explanation of the organization’s current segmentation, targeting and positioning (STP)…...

Zara was first developed just outside of Spain in1988, in 1994 Zara broadened into France and Mexico (Bhardwaj et al, 2010). Zara is owned by the INIDEX group in which it adds to 64.8 percent of overall company sales (Inidex yearly report, 2011) which was a 10 per cent growth on the previous. Zara now has over 1830 stores around the world throughout 82 markets in 64 nations, with strategies to move into Korea, Egypt, Ukraine and Montenegro and a…...

Introduction In order to compete in the world of rising globalization and shortening of product life cycle nowadays, firms have to deal with the demand for increasing product variety to meet the diverse needs of customers. Mass customization has become a requirement for many businesses especially in the dynamic, fast-changing industries. However, the more product varieties, the more difficult it is to forecast demand, control inventory and manufacture. Therefore, some innovative companies have integrated “postponement” strategies with their supply chain…...