Zara Case Write-Up Essay

Zara is one of the retail sale format of Inditex group and well-known an international fashion clothing brand which is very famous for its apparel and accessories. Zara is a place where we can buy all the latest fashionable clothes in the world as they launches 10,000 designs every year. Zara is one of the Spain famous fashion clothing brand which is located in 70 countries in the world. Zara company is started earlier in 1975 by Amancio Ortega, a famous business person who planned to enlarge his small factory by opening a big store. In 1988 the Zara Company started to enter in to the international market to expand their business globally. Zara opened first international store in Portugal. Portugal store got a big success and then Zara decided to open a store in USA. By the next year they opened another store in Paris. These all made a tremendous growth to Zara and it became as an iconic representation of Spanish fashion. Zara began to enlarge their business quickly in 1990s. Around the world there are 1763 stores in 2013. In this assignment we are going to discuss about Zara’s strategy structure, infrastructure and process development, work scheduling and its reward products.

Zara has its own railway track on which the goods move to the distribution centre. Its distribution facility functions with minimal human intervention and optical reading devices sort out and distribute thousands of clothing an hour. (Ray, 2010) Zara business model differentiates it from the competitors. It is positioned on high quality and low

Zara’s goal is to offer fashion at reasonably priced level in moderate quality products. Zara has a slightly different business model

In my point of view, the most famous way of ZARA strategies in doing their business has a huge linkage with lean which is the fast fashion. ZARA implement just in time strategy to keep their stock low, which decreases the waste of overproducing and inventory. They will only produce the product in the small batch to see whether it going to sell well or not and if the product is well sell they will produce them again but if it not they will have low failure-cost. By resulting of having just the stock they need, ZARA can make a new product more often, and when customer come in they will see a more new fresh product which will make customer come to their store more often. Also, they need not to do discount much or have their product unsold or to be the deadstock much lead them to gain a better margin. Also with one of Zara most famous key of their business “fast fashion”, which according to what Mr. Ortega the owner of Zara said in the book “Secret of Zara”, he said that when there are a new design ZARA want them to be able to launch in just for 2 week to make that item latest fashion product in that time. So, making a small amount of product will help them to make the new design product faster. ZARA is using vertical integration by implement in-house design, production, distribution and retailing instead of being like their competitor that

Zara brand products are part of the Inditex Group which was founded by Amancio Ortega. Zara brand products currently compete in what is called the fast fashion industry. Fast fashion is a trend in the fashion industry where companies produce and sell new clothing trends within the market as quickly and cheaply as possible (Fernando, 2015). This is made possible by new innovations within the supply chain management of these companies. Innovations are precisely the way Zara has become one of the top fast fashion businesses in the industry. By utilizing their core competencies along with efficiently managing their supply chain, Zara has developed a way to give customers what they want faster than anyone else (Hitt, Ireland, & Hoskisson, 2017, p. 100). Zara has done an excellent job at defining its business strategy and utilizing their core competencies to create value for their customers which is why they keep coming back. This also brings in new customers to purchase from Zara. The purpose of this paper is to examine Zara and various aspects of their business.

It is necessary to have plans in place and implement them as soon as feasible. Zara has to send several deliveries in a week to update its styles in stores. Zara has to produce different styles of current fashion trend; this helps Zara to become fashion forward merchandise.

Zara has differentiated from its competitors by producing low-cost designs, which can be produced and distributed to stores in a very short turnaround time. Zara´s IT strategy is to use minimal cost equipment without the need for substantial amount of information systems support. Zara´s IT internal department consists in 50 people, almost from Galicia and local universities, with a very low turnover rate and located in La Coruña. They are responsible for developing the applications for Zara´s unique business. All Zara´s IT operations are centralized from the headquarters.

Zara owns both its production and retail units which give the upper management a better overall control. They have successfully integrated Information Technology into their business model. They also have great international growth selection

Also, Managers can see the newly available garments by consulting a handled computer that is linked each night via dial up modem to information system at La Coruna.

Zara brand is an attractive case study for many fashion brands around the world for understanding Zara’s business model and their wining factors. One of the Zara’s strategies that make difference between Zara and other competitors is policy of zero advertising. The company tries to invest their capital in opening new branches. As result of this policy Zara is known as fashion imitator trade group and low price fashion products. The range of Zara’s products is wide such as: men\women’s clothing, Zara kids, and shoes, lower and upper garment in various sizes. Designing of Zara’s products are made 50% in Spain, 24% in African and Asian and 26% in the rest of

Zara has created a very creative business model and supply chain technique that is often studied but rarely copied. About half of the manufacturing is either done in Spain or a neighboring country. This allows Zara to have a competitive edge on their supply chain. Zara is a completely vertically-integrated retailer. Unlike similar retailers, Zara controls most of its own supply chain, from designing, manufacturing and distributing to its products. Zara also offers considerably more products than similar companies. It produces about 11,000 distinct items annually, compared

Creative teams consisting of designers, sourcing specialist and product development personnel, develop design collections. The teams work simultaneously on different clothing, building and improving on styles previously available. Zara’s designers are trained to limit the number of changes made by lowering the number of samples required, minimizing cost and turnover time. Its demand based production or Just-in-time (JIT) production reduces the amount of inventory available, lowering Zara’s storage cost. Zara 's outstanding lead time is unbeatable in the industry at the moment. Furthermore, Zara eliminated the traditional design process, where design and development overrides fabric procurement. In Zara, the design teams work with the available fabric, allowing for faster fashion.

The proximity of these suppliers gives Zara great flexibility in adapting their product lines based on up to date market trends and consumer behavior and responding quickly to shifts in consumer demand. It also decreases costs of holding inventory. Zara gives store managers significant autonomy in both determining the products to display in their stores and which to place on sale, and relaying market research and store trends back to their headquarters in La Coruña. Zara designers continuously track customer preferences and then placed orders. Designers talk daily to store managers, to discover which items are most in demand.

Zara Company is identified to be very successful in the market because of the support from its supply chain. Zara produces its products at a very high speed to meet the market demand, and its designers

This kind of thesis is a complete study of the current marketing situation, internal and external impact and competitive situation. The thesis targeted on} the opportunities, threats, pros and cons of ZARA. And also this thesis focuses on target market strategy,