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Zara case study

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Zara case study

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Zara case study

  1. 1. GROUP 3 TEAM | SEHNAZ | RAHUL | DHRUV | MEGHA *KINDLY REFER TO THE NOTES ON CERTAIN SLIDES FOR EXPLANATION.
  2. 2. SNAPSHOTS 1. What is fashion 2. Analysis of ZARA 3. Blue ocean strategy 4. What should ZARA do regarding its IT system? 5. Learning from ZARA
  3. 3. WHEN WE TALK ABOUT FASHION. WHAT IS THE FIRST THING THAT COMES TO YOUR MIND?
  4. 4. WHAT DO THESE MODELS HAVE IN COMMON?
  5. 5. 36-24-36
  6. 6. EVEN YOUR RIVALS KNOW THAT
  7. 7. ZARA CUTTING EDGE
  8. 8. PORTER FIVE FORCES
  9. 9. TIME FOR CHANGE? High competitions Price wars = low profit margin Exploiting existing demand OVERSATURED MARKET = RED OCEAN
  10. 10. HOW DO WE CROSSOVER TO THE BLUE OCEAN?
  11. 11. ZARA+
  12. 12. FAT IS THE ‘NEW THIN’
  13. 13. WHY?
  14. 14. THE ISSUES 1700 stores globally but only 45 in USA REASONS: USA obesity percentage is higher than European counterparts ZARA does not produce clothes for larger size people. http://abcnews.go.com/GMA/video/zara-fashion-linesizes-coming-time-17726650
  15. 15. THE WORLD IS GETTING BIGGER
  16. 16. SHOULD ZARA MODERNIZE HER IT SYSTEM?
  17. 17. WHAT IS ZARA USP? Fast supply chain Launching new design within 3 weeks First to deliver the latest fashion Earn the first producer advantage
  18. 18. WHY CHANGE THE SYSTEM THAT WORKS? • Rapid globalization of stores • Current system becoming obsolete • Delicate system with limited workforce to repair it • Keep up with current technology so ZARA doesn’t get left behind!
  19. 19. THE BEST WAY TO IMPLEMENT IT? 1. Test-drive new system in the new store first 2. Identify potential problems and rectify them 3. In the mean time, the company will have two software running for a period of time 4. Operating cost will be higher but our supply chain won’t be affected 5. So this way ZARA doesn’t lose her USP 6. Once the system is running smoothly, we will start introducing these system in the old stores
  20. 20. LEARNING FROM
  21. 21. THEY UNDERSTAND WHAT IS THE MOST IMPORTANT ASPECT OF THE INDUSTRY. RAPIDLY-CHANGING TASTE OF THE CONSUMERS
  22. 22. THANK YOU

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