Zara As A Flagship Brand Under The Inditex Company

1372 WordsJan 11, 20166 Pages
Over the years, what we know as the retail industry has changed. With fast access to information and increasing demand from customers, the retail industry have been fighting to overcome challenges to keep up with the changing times. Zara, a flagship brand under the Inditex Company (Industrias de Deseno Texti S.A) founded in 1975, achieving huge success within the retail industry in most focuses of operation. ZARA spend minimal money on their marketing campaign which would make you question, how is ZARA so successful? The answer is their effective, fast supply chain. According to McMillan and Mullen (Operations Management Vol-2, 2002), “the purpose of SCM is to integrate all tasks associated with the bi-directional flow of materials,…show more content…
As technology developed to be ubiquitous, the expectations of customers have grown correspondingly. Companies are now able to become global and complex easier than ever. Competition for consumer’s demands is growing on every front, forcing businesses to modify or create new business processes in a much faster timeframe than ever before. While ZARA originated in Spain, the company has stores in 86 different countries around the world. Technology companies are able to introduce products and systems to businesses across all sectors which at one point had been exclusive for business-to-business interactions. All companies are now able to have access to systems which allow electronic invoicing, computerising shipping and tracking and automated notifications, systems that at one point had only been used by companies such as FedEx and UPS. It wasn’t until customer-focused companies such as Amazon, an online retailing business with no brick-and-mortar stores came on the scene and provided customers with the opportunity to see how involved they could be with their purchases. A company like Amazon had been one of the first companies to be able to link each of their online processes to each link of a real-time supply chain with additional benefits. Amazon had experienced a system which had allowed them to see how their products are moving around the planet. An efficient supply chain would know exactly where inventory is and
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