Case Study : Zara's Success

Operations management is defined as the design, execution, and control of operations that convert resources into desired goods and services, while implementing an organizations business strategy (Business Dictionary, 2015). Office Depot Inc. is one such organization that truly understands that solid operations is the foundation to the success they have had in recent years. In this paper, I will give the history and background of Office Depot Inc. and explain why they have been able to keep such a competitive advantage in the consumer and small business supply industry. Additionally, I will

Zara is an apparel company and the leader brand of the Spanish retail mogul, Inditex. zara was established in 1975 in Spain by Amancio Ortega who is currently the 3rd richest man in the world, the first store was opened as an outlet but by 1979 the establishment already had six stores at different locations in Spain and by 1985 the company branched out to Portugal new york city and Paris. Today Zara has over 1900 stores worldwide which are located in 22 different countries; these stores render employment to over 125,000 employees. Zara depends on information they gather from customer and organizational feedback from all their stores on a daily basis this information is then forwarded to the supply chain, which works in synergy with the stores to keep the level of storage in stores down to a minimum. Zara owns the production, supply chain and in-house production, which lead to greater speed in output (M.A.Cano)

Zara is a clothing company that was founded in 1975 and came from Spain. Its under Inditex group which owns other brands such as Massimo Dutti, Pull & Bear, Oysho, Uterques and many more companies. Zara grew very fast and currently in 2012 has 1,617 stores worldwide. With a large name in the fashion industry, besides that, Zara faces tough competition internationally including H&M, Benetton, and GAP. In order to keep up with the speed chic, Zara need to keep up also with the information system to run their business.

This report is mainly focusing on studies of marketing strategy. By analyzing and discussing the case of Zara, we will be able to have a more in depth analysis of companies and their marketing strategies.

Today many organizations are concerned with productivity and efficiency. In order to keep cost down these organizations resort to the use of sophisticated electronics to run huge supply and distribution network that enables the company to keep cost and prices at rock bottom, while delivery extra ordinary products and services to their customers. In doing all of this Operations Management must exist as well. According to Richard L.Daft. Operation Management can be formally defined as the field of management that specializes in the production of goods and services and uses special tools and techniques for solving

Multi-brand strategy refers to the development and marketing of two or more competitive products by the same firm under different brand names. Zara has created a multi brand strategy through brand acquisitions such as Massimo Dutti for quality and conventional fashion, Pull and bear for casual clothes, Berksha for avant-garde clothing, Stradivarius for trendy clothing, Oysho for lingerie etc allowed Inditex to target different segments more effectively which were built within the domestic market first and launched for international markets.

In this case study it is identified how the well known textile company “Zara” keeps the inventory lowers than their competitors, and how that contributes to Zara’s success. Also in the case study are identified a few characteristics of Inventory Management and the advantage and disadvantages to keep the Inventory low. In the following paragraphs it is describe what mean Inventory Management and there are 5 significant reasons to maintenance an inventory, also Zara believes that Inventory it’s equal to death of the firm another competitive advantage edge for Zara is that they don’t outsource a lot but they produce in house their items and that help them to manage the inventory and to be substantive.

Zara is a Spanish clothing and accessories retailer that was founded by Rosalia Mera and Amancio Ortega in 1975. It is the leading retail store of the Inditex group, which is a fashion group who owns multiple brands such as, Massimo Dutti, Uterque, Stradivarius, and Bershka and also pull and Bear. Amancio Ortega unbolted the first

Inditex, the owner of Zara, first started out in the dressmaking and textiles industry before opening the first Zara store in Spain in 1975. Since then, Zara has been extremely successful in the fashion industry throughout the entire world. The first US store opened in New York City in 1989 and Zara has been expanding continuously. The first logistics center for Zara was built in 1984 and encompassed about 10,000 square meters. The founders, Amancio Ortega and Rosalia Mera, prides the company on the idea of fast fashion which incorporates a distribution system that needs to keep up with the continually changing fashion trends.

Zara is an apparel chain owned at operated by the Inditex of Spain. It was founded by Mr. Amancio Ortega Gaona; currently Spain's richest man. Zara specializes in fast fashion. At the end of fiscal year 2001 Zara was operating 1,284 stores world wide and had total revenue of €3,250 million. Inditex's headquarters and its major assets are located in the Galacia region of Spain. Inditex also operates five other chains: Massimo Dutti, Pull and Bear, Bershka, Stradivarius and Oysho.

|00:00:03.0 >> |PANKAJ GHEMAWAT: What are the core features of the ZARA business model and when were they |

With annual growth of around 20 percent in both sales and number of stores, Zara was finding that strategy increasingly difficult to execute. Part of the Inditex group of fashion distributors, it currently has more than 1,100 stores in 68 countries. With so much volume flowing through the supply chain, the

Operations Management manages the outline and administration of items, procedures, administrations and supply chains. It considers the securing, advancement, and usage of assets that organizations need to convey the merchandise and administrations their customers need. The furnish of OM reaches from key to strategic and operational levels. Agent key issues incorporate deciding the size and area of assembling plants, choosing the structure of administration or information transfers systems, and outlining innovation supply chains.

Zara is a Spanish brand of clothing founded by the visionary Amancio Ortega Gaona and Rosalia Mera in Artexio, Galicia. Zara was founded in the year 1975. It is one of the major selling brands of one of the biggest fashion retailer "INDITEX". Zara is now available in 86 countries with total of 1,763 stores worldwide.

This chapter provides a definition of operations management. The role and importance of operations in an organization are described, along with operations decisions that are made. The differences between manufacturing and services are described. The history and current trends of operations management are discussed, including the impact of information systems. Finally, the interaction between operations and other business functions are described.