ZARA’S OPERATIONS STATEGY, A CRITIQUE OF A BUSINESS CASE.
1.Excecutive summary.
Operations management is in regard to all operations within the organization responsible for creating goods and services that organizations pass to their customers. This function is at the heart of all organizations, giving the means of achieving their aims and reason for their existence. These activities include: managing purchases, inventory control, quality control, storage and logistics. A great deal of focus in operations is on efficiency and effectiveness of such a process.
An example of successful operations strategy in the retail industry is the strategy employed by Zara which is discussed in this critique. Zara started as a single shop in La Coruna and then rapidly spread its wings to 68 countries; opening a store each day - one of the fastest global expansions the world has ever seen. Throughout the entire system of Zara’s business; designing, sourcing, manufacturing, distribution process and retailing come out a number of success factors: short cycle time, small batches per product, extensive variety of product every season and heavy investment in information and technology. This elements feature in every aspect of the business.
2. Introduction.
Zara is the flagship brand of the Spanish fashion retail giant, Inditex, (Industrias de Deseno Texti S. A.) Founded in 1975 ; this super- heated performers in soft retail fashion market in recent years; is engaged in textile design,
Operations management refers to all levels of an organisation and how best to efficiently convene, fund, maintain and maximise its services and/or operations, both internal and external. The core goal/objective of operations management it to maximise outputs while reducing and minimising the inputs required to achieve the desired results.
Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It is the management of resources, the distribution of goods and services to customers, and the analysis of queue systems.
Operations Management in an organisation is repsonsible for managing and in making decisions concerning the activities that convert inputs into outputs , that is goods and services. This covers both short term actvities as well as longer term activities to meet strategic goals. Inputs can be the raw materaials need to manufacture goods such as furniture or the computers needed to create a service like online shopping site. Operation management’s role is to make decisions to improve how operation activities function, for example, to improve the final quality of the output or to change production methods to be more efficient in terms of cost and in time.
Zara is a dress retailer who has taken another approach in the business. It was established by Amancio Ortega in 1963 in Spain. Its guardian organization is claimed 60% INDITEX by the Ortega family and Inditex has completed in 2005 to 6.741 billion
Operations management focuses on managing the processes of producing and distributing products and services. Operations activities often include product creation, development, production and distribution. It deals with all operations within the organization. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. The nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.
Zara is a Spanish clothing brand founded in 1975 by visionary Αmancio Οrtega Gaona in Spain. Zara is one of the largest selling brands from the largest retailer of fashion "INDITEX". Zara is known chain of brands particularized into designing clothes, shoes and accessories for all genders and ages. Zara owns lots of employees (40.000) for fast clothing fabrication and shipping needs. Zara is now available in 88 countries with a total of over 2000 stores worldwide and 29 online markets (Slack, Chambers, and Johnston, 2009). Also, Zara is classified as one of the biggest and most successful companies with due to the excellent quality of products provided and the visional given attempt to compete and claim the first place on sales among other strong companies such as H&M and Gap. Of course, it cannot be neglected that Zara managed to rapidly correspond to customer's demands.
Zara is the flagship company of Inditex, an international clothing retailer. Zara began its business as a small retail store in Spain founded by Amancio Ortega Gaona in 1975. In the following decades Zara has grown to nearly 450 store location in 29 countries by the year 2000. Zara consistently accounts for more than 80% of Inditex’s net sales as indicated by Figure 1; linking the success of Inditex to the success of the strategies of Zara.
Based in La Coruna, Spain, Zara is Inditex’s main brand, (Fashion Forward -The Economist, 2012).
Zara, a Spanish owned clothing organisation, is one of the world’s most successful clothing brands. It has utilized a unique and targeted marketing strategy to ensure it has consistently met business growth targets, and has attracted a wide range of consumers across its numerous stores worldwide. Zara was started by Amancio Ortea Gaona in 1963 and has since expanded to over 2000 stores worldwide.
· Zara – the flagship brand of Spain based Inditex group, founded by Amancio Ortega Gaona and opened its first store in 1975.
Zara is company related to apparel retailing headquartered at La Coruna Spain. It is the top Brand of Inditex Corporation owned. It was founded by Amancio Ortega in the year 1975. The Brand is well known for affordable and fashionable designs of clothing. The company 's target is to secure a big market share among the young and fashion conscious people across the
Operations Management is concerned with the managing of resources and activities that produce and deliver goods and services
Operations Management is the management of the process that transforms raw materials into goods and services. It is a never ending cycle that deals with the design and management of products, services, processes and supply chains. It also takes into consideration the procurement, development, and usage of resources that industries need to deliver those final goods and services to their clients.
Zara is one of the biggest international fashion companies and Inditex is her parent firm which is largest clothing retailer in the world. Nowadays, Zara already has more than 2000 stores in 88 countries and is increasing at the speed of 60 stores each year (Inditex, 2014) which create chic clothing every week in order to make customers come back again and again to pick out the freshest styles.
Zara is one of the most well-known international companies in the world. It is recognized for its high fashion, quality garments and affordable prices. Zara’s parent company is Inditex. “One of the world’s largest distribution groups” (Zara, n.d). Zara offers fashionable designs for men, women and children. Zara was opened in A Coruña, Spain by Amancio Ortega and his partner Rosalia Mera in 1975. They wanted to name their store after their favorite film Zorba the Greek. Since that name was already taken, they came up with a name that had similar letters. Zara was born and the brand become a global phenomenon which is currently headquartered in Artexio, Spain. Their mission statement indicates that customers come first in their business.