ZARAIntroductionContents- SWOT Analysis- New Operating Model- Operation EnhancementConclusion                          Pre...
Zara 21st Century Task Force:                    Zara global & Franchise Culture |                                        ...
Analysis Current System                  SWOT   S                                                                 W       ...
New Operating Model     Spain HQ           Vietnam Branch                      From Sourcing to Sale Same organization    ...
New Operating Model                                  Supply management   Local Supplier @Vietnam     Low Cost Fabric (Ch...
New Operating Model                        Manufacture/Logistics   Manufacture at Asia     Closer to the Asian Retailer ...
New Operating ModelFuture Expansion Establish New Base Camp for Southern Hemisphere     Where?    Chile     What?     M...
Operational EnhancementConditional Disintegration New Policy for New Market     Adopt franchise policy for Asian market...
Summary – Asian/Pacific market          • Localized Plants (Trendy) & Logistics Model    • Market coverage : Asia / Pacifi...
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Zara cairo_p13

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Transcript of "Zara cairo_p13"

  1. 1. ZARAIntroductionContents- SWOT Analysis- New Operating Model- Operation EnhancementConclusion Premier 13 / Cairo
  2. 2. Zara 21st Century Task Force: Zara global & Franchise Culture | SearchValue Chain Expand Global Market- No inventory - DecentralizationOperational Efficiency Intensify Franchise- Vertical integration - Conditional integrationCulture Culture- Open communication - Spread innovation - 20th - - 21st -
  3. 3. Analysis Current System SWOT S W Overdependence on the Vertically integrated European market Short turnaround period Low cost competitiveness Strategic initiatives to expand international presence Local/Global Competitors Positive outlook for Asia- Economic slowdown in Euro Pacific apparel retail market O T
  4. 4. New Operating Model Spain HQ Vietnam Branch From Sourcing to Sale Same organization Planning - In-house & sub-contracting manufacture Marketing for trendy garments - create quality control organization Design Sourcing Sourcing Mfg Mfg Only Trendy Distribution Distribution Sales Sales
  5. 5. New Operating Model Supply management Local Supplier @Vietnam  Low Cost Fabric (China / Vietnam)  Material transportation fee ↓ Quality  In-house Dyeing system  Producing Equipments, Dye, etc from H.Q. *. Quality Management Team to Fabric/Assembling (like HQ) Local Garment Supplier Fabric In-House Manufacture pieces Out- Dyeing Cutting Assembly sourced H.Q. Dye Sewn & Assembled < Vietnam >
  6. 6. New Operating Model Manufacture/Logistics Manufacture at Asia  Closer to the Asian Retailer & Quick Response – Geographical advantage  Lower cost garments – Low labor cost & transportation fee Simplify Logistics @ Europe / Asia  Europe & East America @Spain  Pacific region (Asia, West America) @Vietnam Trendy & Basic Trendy Basic Manufacture Plants Distribution Center Retails
  7. 7. New Operating ModelFuture Expansion Establish New Base Camp for Southern Hemisphere  Where? Chile  What? Manufacturing, and distribution center  Why? Lower labor cost, politically stable, pacific cost  When? 2 years later  How? Following the Vietnam system Brand Turnover Area Pull & Bear 161 154 Strategy to implement ZARA system to Sister Brands Massimo 184 182  Integrate manufacturing, distribution system Bershka 125 347  Increase hypermarket & department store sales  Create & operate Inditex shop Stadi 67 212  Implement Zero inventory strategy ZARA 2,422 908
  8. 8. Operational EnhancementConditional Disintegration New Policy for New Market  Adopt franchise policy for Asian market Maintaining Cultural Value  Reinforce education system for franchise owner  Free communication channel between local production manager & HQ HQ Edu/Design Edu. Feedback Trend Feedback VB FO Goods
  9. 9. Summary – Asian/Pacific market • Localized Plants (Trendy) & Logistics Model • Market coverage : Asia / Pacific (west USA) • Secure raw MaterialBenefit • Lower cost Manufacture & Distribution • Access easily “Market Trend” @AsiaConcern • Franchise : keep culture & reinforce communication
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