Zar It Or Fast Fashion

In This case we see the typical problem which affect big Companies : the conflict between old style and new school of thought. We analyze Zara’s information Technology strategies and the diatribe between Salgado, The Head of the Department and Sanchez , his assistant,s concern upgrading the operating system and the implementation of a new IT system to fulfill the needs of a fast growing retail chain. Despite the fact that Zara is over performing in their core business and that they are not showing big problems inside their structure, this shouldn’t be seen as a pretense to dodge updating the Software. Here we

To cite this document: S.G. Hayes, Nicola Jones, (2006),"Fast fashion: a financial snapshot", Journal of Fashion Marketing and Management, Vol. 10 Iss: 3 pp. 282 - 300 Permanent link to this document: http://dx.doi.org/10.1108/13612020610679277 Downloaded on: 07-08-2012 References: This document contains references to 40 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 10511 times since 2006. *

Zara is a name that seems to always come up when people talk about Spanish fashion. It is one of Spain’s most famous clothing brands and Zara stores can be found all over the world. The company was founded in 1975 by Amancio

Zara’s IT was positioned in the support mode quadrant on the IT strategic impact grid. This demonstrates that Zara's leadership team understood that their corporate strategy focused on the expansion of the number of stores selling of high fashion, short life span clothing to young fashion conscious, city dwellers. There was a relatively low need for reliability and strategic IT, it simply existed to support employees activities (Nolan and McFarlan, 2005). By implementing a new POS system Zara could potentially have come up against the following key risks:

Zara has historically made minimal investment in IT. Its competitive advantage over other competitors is not because of its IT infrastructure but because of its integrated supply chain and faster response to the changing customer taste. Zara’s approach to IT was consistent with its decentralized decision making process. It has proved to be remarkably stable, effective and easy to roll out and maintained over time. But in order to maintain business competitive advantage, a cost-benefit analysis is must before making any decision to invest in up gradation of IT.

Zara was founded by Amancio Ortega in 1963. The business began as a small outfit producing lingerie items. The first Zara

The clothing industry, as one of the most globalized industries in the world (Bonacich et al 1994), is currently undergoing a restructuring, especially the fast fashion sector. Fashion markets are synonymous with rapid changes and short product life cycles. Therefore, changes in consumer demand for newness and fashion trend force the emergence of ‘fast fashion’ strategy in retailers like Zara and H&M and shifts in the focus of competitive advantage from price towards quick response. That is to say, clothing firms, which are adopting global or offshore sourcing strategy, are not considered to have more competitive advantages as before.

Zara is a clothing and accessories retailer selling stylish apparel at affordable prices, and it is also the most profitable brand of the Spanish clothing retail group Inditex SA. Ortega planned for this new Zara outlet, located near his factory in La Coruna in northern Spain, to sell this overstock merchandise himself. Since then, Zara has expanded into 500 stores in 68 countries as of January 2007 and has become a leader in customized fashion retailing. This assignment presents core competencies to help Zara achieve competitive advantages in fashion industry. Besides, we also offer five competitive objectives about quality, speed, flexibility, dependability and cost to evaluate

In 1975, Amancio Ortega opened the first Zara store in Spain's remote northwest town of La Coruna, home to Zara's headquarters. Having already worked in the textile industry for two decades, his experience led him to design a system in which he could control every aspect of the supply chain, from design and production to distribution and retailing. He knew, for example, that in the textile business, the biggest mark-ups were made by wholesalers and retailers. He was determined to maintain control over these activities.

The names Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe may sound unfamiliar to some but they are the brain child of Amancio Ortiga, founder of Inditex. Amancio Ortega is a native of Spain and is now considered the 4th riches person in the world according to Forbes Magazine (At a Glance, 2014). Starting as a small company that produced women’s night clothes for garment wholesalers, Inditex grew after a large canceled order (Sardar, 2012). The first store Zara was created for canceled items but eventually turned into the company’s flag ship store. Currently Pablo Isla Alvarez de Tejera is now the Chairman and CEO of Inditex after the retirement of Ortega. He started as chairman in 2011 but started

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.

Introduction     Zara  is  a  fashion  retailer  established  in  1975  by  the  Spanish  group  Inditex  founded  by   Amancio  Ortega  Gaona.  Inditex  runs  over  more  than  5400  stores  worldwide  and  owns   brands   other   than   Zara   such   as   Massimo   Dutti,   Breshka,   Oysho,   Pull   and   Bear   and   Stradivarius.   Inditex   headquarters   are   located   close   to   La   Coruña   in   northwestern   of   Spain.   The   old   shipbuilding   town   of   La   Coruña   seems   an   unlikely   home   to   a

This case paper presents the business analysis of Zara, the leading and the profitable brand of Inditex. The case paper’s objective is to discuss whether to update the current DOS/IT infrastructure and evaluate the effects of the upgrade. It presents the IS implementation opportunities and evaluating the effectiveness of the implementation. It concludes by providing recommendations for updating the current OS along with its advantages.

In 1963 a Spanish multinational clothing company known as The Inditex Group, was founded by Amancio Ortega in Galicia Spain. It is made up of 100 companies specializing in textile design, production and distribution. This company started out by introducing a new way of fashion, instead of offering clothing that was long-lasting at an expensive price, they offered clothing in massive varieties at affordable prices. Now Inditex owns worldly famous brands such as, Zara, Massimo Dutti, Bershka, Oysho, Pull and Bear, and Stradivarius, Tempe, Zara Home, and Uterque. These brands have gone on to become corporate owned franchises and have locations all over the world. In 1985 the company had opened 80 Zara stores in Spain alone, and

Amancio Ortega, had a simple idea of linking customer demand to manufacturing and manufacturing with distribution, when creating ZARA in 1975 in la Coruña, Spain Zara came under the holding company Inditex in the year 1985 and is today the biggest fashion brand of the group. Zara believes that the prime factors for running a successful business are quick response to customers, use of computers, and disintegrated decision-making (McAfee, Dessain, & Sjoman, 2007)