ZARA’S OPERATIONS STATEGY, A CRITIQUE OF A BUSINESS CASE.
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.
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,