Zara Case Study

3306 Words Nov 8th, 2008 14 Pages
June 6, 2007

Zara Case Study

Summary

Zara is a clothing retail store for women, men and children, concentrating sixty percent of their effort to the women clothing market. Besides retailing, Zara also designs, produces, and ships their lines of clothing to their Zara stores. Zara's corporate concept is to offer fashionable, trendy, designs at a reasonable price. The key to their corporate success is to offer the latest trends and fashions before their competitors. They believe that they are in the fashion business, not the clothing business. As part of this corporate concept, the stores try to hold very low levels of inventory, often having their entire inventory out on display, in order to sell out and make room for the next wave
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In short, the portal solution will make Zara leaner, quicker, and more capable of meeting customers demand and continue to maintain their competitive advantage during time of expansion.

The Portal Solution

Zara' employees seem to have a very good ability predicting the next big trend in fashion. The product market specialist and store manager spend a great deal of time communicating this tacit knowledge of what the next big seller item is going to be. Even some of the store employees are wearing Zara products indicating that too are aware of what will be the next fashion trend. It is through this tacit knowledge that Zara is capable to getting a jump on their competitors. This feeling or sense of what products will be in demand, and results from sales at a test store, Zara store managers and market specialist are able to spread the word to other stores.

This is the type of knowledge that should be captured through the use of a portal. An employee blog could be established that would allow managers to report hot items that are selling quickly. Additionally, it could be used to communicate speculations that store mangers and employees regarding the fashion trends.

This communication forum would spread the word more quickly than the method of sharing information they are currently using. In addition to the blog, the portal could contain an e-mail portal to distribution groups,

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