Case Study Zara Analysis Mis

3171 WordsApr 2, 201213 Pages
Team “AnonyMIS”: Julia Winter, Maximilian Philipp Schmidt, Julius Liebrecht, Djaky Agbadou, Nathalie Garro In-Class Case Study: 1 Introduction: Background Information 1.1 Company overview The firm Zara is a Spanish clothing and accessories retailer based in Galicia, northern Spain. In 1975, founder Amancio Ortega opened the first store in La Coruna, Spain. Zara is the flagship chain store of the Inditex group (Industria de Diseno Textil), encompassing many self-designed different fashion styles from daily clothing to formal suits, evening dresses and business wear. Their stores feature low-costs lookalike products of popular high-end clothing fashion. The Spanish corporation Inditex is the world`s largest fashion…show more content…
In the market the multinational retailers have the most power in order to sell their products but also concerning their buying power. 3.2 Business Model The firm formulated a unique value proposition: Zara combines moderate prices with the ability to offer new fashion styles faster than its competitors. To do so, the company developed a business model which includes the following operation goals: 1. Develop a system which requires very short lead times 2. Decrease producing quantity in order to decrease the risk of inventory 3. Increase the number of different available fashion styles (selling “state-of-the-art” fashion) With 1283 Zara stores worldwide (mainly in Europe and Asia), the company operates on an international basis. Zara provides affordable fashion for men, women as well as children`s clothing (Zara Kids). Each of these is subdivided into Lower Garment, Upper Garment, Shoes, Cosmetics and Accessories. Therefore the Spanish apparel retailer is able to attract a wide consumer range. Especially the textile industry is in constant flux, hardly driven by consumer demands. Therefore, the fundamental concept of the company is to maintain design, manufacturing and distribution processes which enable Zara to respond quickly to shifts in consumer demands. While other competitors outsource all production to Asia, Zara designs and produces in-house. By doing so, the company has tight control over the whole production process (the vertical integrated
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