Zara It Strategies for Retail Essay

2571 Words Feb 16th, 2013 11 Pages
Matteo Fioravanti
Abbey Road - MIB 2013 2355 words

Zara: IT for Fast Fashion

Zara: IT for Fast Fashion

EXECUTIVE SUMMARY
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
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What Bruno Sanchez Ocampo couldn’t see, was that even though the system was working properly, there were several gaps that a new system could fulfill efficiently. The lack of constant communication with the headquarters could be taken as a perfect example. The cost of having only one daily communication after the store was closed could be simply solved by a new wireless system. Having only one modem connected POS per store turned day to day operation into highly unproductive situation, not to say that using floppy disk and carrying them around the store each time was extremely out of date by the year 2003. A major lack in the system was that there was no possibility of sharing data between the POS and the PDA. As a consequence there was a complete miscommunication between the point of sales and the personal display assistants. Furthermore, another flaw in the system was the impossibility of communication between the different stores. This is a huge opportunity cost if we think about the internal supply that could be provided by the nearby stores. Even though Zara made an effort and changed the hardware of the POS, this seemed to be not enough. The software was still run by DOS and there was no more support for that kind of program.

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