Zara´s Information Technology System

Zara’s IT expenditures are low by fashion industry standards. The spectacular benefits reaped by Zara from the deployment of technology have resulted from targeting technology investment at the points in the value chain where it has the greatest impact, and not from the sheer magnitude of the investment. This is in stark contrast to Prada’s experience with in-store technology deployment.

Answer 2: The quantitative management approach and data analytics could help Zara in more ways than one. For instance by paying close attention to the numerical data varying from sales by store, what product sells by each store, keeping track of inventory, and always having an idea if you’re making more than you’re spending. The quantitative management approach will help executives always be up to date on sales and what the public is buying. Generating more designs that will continue to sell.

Hence, technology is bettering reliability and speed with which information is divulged (Porter, 1980). Hand-held computers or PDA’s are utilized by Zara to collect information on consumer needs between retail stores and the factory in La Coruna. This along with regular telephone conversations between store managers and marketing specialists are one of the reasons that Zara’s information network is so effective. The utilization of PDA’s can be done by any company; it is Zara’s determination not to allow important information to fall by the wayside that assists with its success. PDAs are connected to the store 's point-of-sale (POS) system, enabling managers to see how garments rank by sales. In as little as an hour, managers can send information that combine the hard data captured at the POS intermixed with acumen on what customers would like to see. All of this data allows Zara to design and produce styles and orders based on feedback rather than guesswork. Hence, Zara avoids costly overproduction and the consequent sales and mark-downs that are so widespread in the fast fashion industry (Rohwedder and Johnson, 2008).

What is the Zara “business model”? How is it different from the business model of other large clothing retailers? What weaknesses, if any, do you see within this business model? Is it scalable?

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

The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of

While all of these technologies have enabled exciting changes and opportunities for businesses, they have also created a unique set of challenges for business managers. Chief among all concerns about technology is the issue of information security. It seems to be almost a weekly occurrence to see a news article about yet another breach of security and loss of sensitive data. Many people will remember high profile data breaches from companies such as T.J Maxx, Boston Market, Sports Authority, and OfficeMax. In the case of T.J. Maxx, a data breach resulted in the loss of more than 45 million credit and debit card numbers. In many of these incidents, the root cause is a lack of adequate security practices within the company. The same technologies that enable managers can also be used against them. Because of this, businesses must take appropriate steps to ensure their data remains secure and their communications remain

This theory was made possible when Inditex accomplished correlating situational demands to a certain management style. The tactic for Zara is to interact with its environment and transition suppliers into consumers and to create systems to keep track of time production as well as reporting of inventory.

-Since Zara has a short lead time for delivering products, it keeps no buffer stock and most, if not all, logistics arrangements were centralized at the head office in La Coruna. This makes Zara very vulnerable to accidental incidents.

The case study is upon on the resource based view. First, the firm resources were divided into three major parts: tangible resource, intangible resource and human resource as Grant suggested. The main body of the essay will also be divided into three parts according to the resource classification. Then, a VRIN test would be carried after listing different types of resources to inspect whether they are able to provide a sustainable competitive advantage for Zara. Finally, Zara’s dynamic capabilities will be discussed to state how Zara used the resources based on their organizational culture.

The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zara’s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy, which is supported by competencies in logistic management, design and information systems, allows the company to maintain less inventory and higher profit margins and is a key factor to Zara’s success. The firm should continue to add value by seeking new opportunities to expand in the retail market and maintain their sustainable growth.

Zara 's US expansion will rely heavily upon continued emphasis on strong IT procedures both

Zara is an apparel company and the leader brand of the Spanish retail mogul, Inditex. zara was established in 1975 in Spain by Amancio Ortega who is currently the 3rd richest man in the world, the first store was opened as an outlet but by 1979 the establishment already had six stores at different locations in Spain and by 1985 the company branched out to Portugal new york city and Paris. Today Zara has over 1900 stores worldwide which are located in 22 different countries; these stores render employment to over 125,000 employees. Zara depends on information they gather from customer and organizational feedback from all their stores on a daily basis this information is then forwarded to the supply chain, which works in synergy with the stores to keep the level of storage in stores down to a minimum. Zara owns the production, supply chain and in-house production, which lead to greater speed in output (M.A.Cano)

Zara’s business model can be broken down into three basic components: concept, capabilities, and value

Zara is a clothing company that was founded in 1975 and came from Spain. Its under Inditex group which owns other brands such as Massimo Dutti, Pull & Bear, Oysho, Uterques and many more companies. Zara grew very fast and currently in 2012 has 1,617 stores worldwide. With a large name in the fashion industry, besides that, Zara faces tough competition internationally including H&M, Benetton, and GAP. In order to keep up with the speed chic, Zara need to keep up also with the information system to run their business.