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Zara Strategic Analysis
Research paper
Zara
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1. Executive summary
Background Information
Inditex is an international Spanish company that designs, manufactures, and sells apparel, footwear, and accessories for women, men and children
through its chains and shops around the world. Zara is the largest and internalized of all the Inditex products such as: Massimo Dutti, Pull & Bear,
Bershka, Stradivarius, and Oysho.
It was firstly open from a businessman called Amanico Ortega in Spain. He has firstly opened Zara in 1975.At 2001 Zara opened 507 stores all around
the world.
Now in 2012 it has 4400 stores in 73 countries all over the world. The primary place that all the Zara's clothes are ... Show more content on
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The company should be aware of duties, obligations and tariffs. They are based on the classification code of the goods, valuation and country of origin.
Albania has a very non solid economy and the entry of a new product is very difficult for the political reasons that I have mentioned above. Since the
buying power is very low the entering of a big company as Zara is potential vulnerable. * Social – Changes in social trends and in social life can force
on the demand for Zara's products and the availability and enthusiasm people to work. The company must work in relation with costumers need,
trends and demand as a result of change in generation choices. Even thought the prices of Zara are relatively low this is a very good point in their
favor if they enter in Albanian market. Because Albanian people cannot afford products that have high prices. Zara can be afford from 60% of the
population. * Technology– Technology is becoming advanced and innovative in today's world. Online shopping, bar coding and computer aid designs
are helping people to do business all over the world. The advanced of the technology has made possible the reduction of costs and the improvement of
quality. These developments can benefit the Zara consumers as well as the organization itself by providing the efficient source of technology service.
This point is something that Albania needs because; it is a country that is developing
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Analyse of Zara
AUDIT DE DISTRIBUTION Introduction I. Fonctionnement et organisation A. Les faits marquants et leur interpretation stratГ©gique 11
BOrganigramme et management 12 CStructure de l'actionnariat 14 D. Contribution des mГ©tiers Г la croissance et aux rГ©sultats du groupe 15 II.
Les choix stratГ©giques III. Ce que les comptes nous rГ©vГЁlent A. Une croissance continue dans un environnement dГ©favorable B. Un cycle
long renforcГ© C. Un cash flow important D. Les dettes de Zara, poste clГ© de l'annГ©e 2008 E. La rentabilitГ© F. Bilan Conclusion Sources
ANNEXES INTRODUCTION Créée en 1975 avec son premier point de vente à Corogne, l'enseigne espagnole Zara a su, en l'espace de 34 ans,
conquГ©rir la scГЁne internationale. Appartenant... Show more content on Helpwriting.net ...
Aussi, la fonction logistique a un rГґle fondamental qui contribue Г un avantage compГ©titif car Zara a mis en place une grande plate forme
distributive Г la Corogne, reprГ©sentant un hub ou se concentrent les produits provenant du groupe et ceux rГ©alisГ©s par les fournisseurs externes
afin de les envoyer. Leur organisation au niveau des entrepГґts permet l'envoi de plus de deux millions de modГЁles. Ces derniers sont divisГ©s en
deux parties, l'une pour les marchandises pliГ©es et l'autre pour les modГЁles suspendus. La diffГ©rentiation vis Г vis des concurrents L'objectif qui
permet Г l'entreprise Zara de se diffГ©rencier est de maГ®triser l'ensemble de la chaГ®ne de valeur qui comprend la qualitГ© des matiГЁres
premiГЁres, le contrГґle de la fabrication des produits, la gestion efficace des rГ©seaux et des circuits de distribution, la formation et le
professionnalisme des vendeurs, la crГ©ation et la qualitГ© du design, les actions de dГ©veloppement et de fidГ©lisation, la gestion de l'image de la
marque et de ses valeurs Г travers des projets humanitaires, culturels et sociaux. En effet, Zara privilГ©gie une politique environnementale et une
politique de protection des animaux. La politique environnementale est respectГ©e Г travers : – les boutiques : Г©conomie d'Г©nergie, magasins
eco–efficace, rГ©duction de la production des dГ©chets et recyclage, Г©quipe sensibilisГ©e Г cette protection. – les services rendus aux clients :
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Company Analysis: The Company Overview Of Zara
II.Company Overview
a.Company background of Zara
Zara is established in 1975, as the flagship brand of Inditex group, which founded by Amancio Ortega. In a short period, Inditex group has become
one of the world's top fashion retailers with more than 4000 stores across 82 countries around the world and more than 50% is accounted as Zara's.
Another Inditex brands which operate worldwide are Massimo Dutti, Oysho, Stradivarius, Zara Home, Pull and Bear, and Uterque. By seeing the
Inditex's brands list, it can be concluded that Inditex almost covers all aspect in fashion industry (Zara 2008).
b.Concepts of Zara
Zara's goal is to offer fashion at reasonably priced level in moderate quality products. Zara has a slightly different business model ... Show more content
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Zara only added two store maximum per year. In 1990, Zara opened its first store in Paris, which is the capital of style and the initial spot for later
growth in Europe (Cervinho & Bonache 1996). After that Zara open some store in Mexico for South America representatives and trailed by Greece
and Malta in 1992 and 1993. The only exclusion for this stage is the initial opening for USA store which is far away from the Spain. This is happened
since Zara wanted to create brand awareness and getting global reputation in fashion industry (Martinez 1997; Cervinho & Bonache
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Swot Analysis Of Zara
Company Name and background Zara is a Spanish clothing and accessory retail company founded in 1975 by Amancio Ortega and RosalГa Mera. It is
the main brand of the Inditex group, the world's largest apparel retailer. Zara also owns brands such as Massimo Dutti, Pull & Bear, Bershka,
Stradivarius, Oysho, Zara Home, and UterqГјe. Zara's strategy is to offer cutting edge fashion at affordable prices by following fashion and
identifying which styles are "hot", and quickly getting the latest styles into stores. They can move from identifying a trend to having clothes ready for
sale within 30 days (whereas most retailers take 4–12 months). This is made possible by controlling almost the whole garment supply chain from
design to retail. Zara, as of 2017, manages up to 20 clothing collections a year. Products: Their online and outlet stores carry men's and women's
clothing, as well as children's clothing (Zara Kids). Zara's products are supplied based on consumer trends. Its highly responsive supply chain ships
new products to stores twice a week. All of the clothing is processed through the distribution center in Spain. They produce over 450 million items per
year. Target audience: Zara's target market is young, price–conscious, and highly sensitive to the latest fashion trends. They segment their product line
by women's (60%), men's (25%) and the fast growing children's (15%) department. Internet marketing strategies: 1. Zara utilizes Social media
marketing as a form of reaching
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What Are the Three Levels at Which a Product Can Be Seen?...
Assignment No.9
Rome Business School
Q1 What are the three levels at which a product can be seen? In response, use a concrete example of product.
The product is defined as a "thing produced by labor or effort or the "result of an act or a process"and stems from the verb produce from the Latin
'produce ' which means to lead or bring forth '. The first economic use of the word was by Adam Smith, known as the father of modern economics.
–Kotler et al (1989)
For marketers, it is useful to divide the product into three main categories, being the Core Product ( Also known as Core Benefit), the Actual product
and the Augmented Product. You can see them in the diagram below with some examples of what they... Show more content on Helpwriting.net ...
From a geneder split point of view, adidas NEO is targetting primarily the girls who account for two–thirds of the business. The Original division
allows adidas to increase its reach into the lifestyle market, without losing sight of its long heritage as the original performance brand. The Original
division is geared specifically toward consumers who may be less active sports participants, but who are style setters and style leaders. It is these
people who set the trends which are later adopted by the mass market. Originals speak to the needs and values of the lifestyle consumer with concepts
that are smart, cool, positive, modern and alive. Adidas Originals are the perfect fusion of heritage sport authenticity and global street style.
Lastly, for the sports–elite Adidas opened Adidas Sports Style . Adidas defined the last one as the "Future of sportswear, which includes the labels Y
–3
, Porsche Design, Adidas SLVR and Adidas NEO. Their positioning statement was "Style your life" . The overallmarketing statement that ties these
three product categories is "Adidas is in all". They made these product lines for the general public, but the main focus was on supplying the sports wear
of the major sports , focusing on football, tennis, basketball, cricket and athletics and rugby.
b) Manufacturing level: Adidas owns four factories in China, the US, Germany and Japan, as well as sharing manufacturing with 863 other factories
worldwide, 60% being in Asia.
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Zara It for Fashion Case Study
Executive Summary
Zara has relied on Personal Digital Assistants (PDA's) and Point of Sales (POS) terminal operating on Microsoft DOS which are not linked to the
headquarters or other stores for its daily transactions. Although, the system has proved to be stable and reliable over time, it has become obsolete and
cannot be supported by the providers.
I recommend that the company invest on a new system like Windows, UNIX or Linux operating system which will enhance connectivity and flexibility
in operations and information flow.
Investing in a cutting edge technology though may be capital intensive initially; it will ultimately improve efficiencies across board and provide new
learning opportunities for the entire workforce. ... Show more content on Helpwriting.net ...
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.
Fulfillment: Fulfillment or shipping clothes to stores to satisfy orders involve other group of commercials. They determine which store s would get
available inventory and which would not base on past selling record. They work with product manager to determine future production for each SKU.
They could also ship items that stores didn't order like new garments. Ordering and fulfillment should be aligned with a modern IS
Design and manufacturing
Stores are located in prime retail districts and layouts are changed frequently. Zara introduces approximately 11 000 new items in a typical year while
competitors average 2000–4000. Zara vertically integrated manufacturing with CAD which gives room for flexibility and quick turnaround. Designs
and cutting of fabrics are done in–house. Garments are delivered to the stores with prices ready for the rack.
IS and Commercial Process
Zara's approach to information technology was consistent with its preference for speed and decentralized decision making. No formal process on IS
investments. Low It spending of 0.5% of revenue compared with 2% by competitors.
As the head of IT for Inditex, the holding company atop Zara, there must be meeting point with Bruno Ocampo Sanchez, technical lead for POS system
on the
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Swot Analysis Of Zara
The business that I would like to examine is called Zara. Zara is in a retailing industry that was founded in 1975 by Amancio Ortega and Rosalia
Mera in Spain. It is a flagship retail store of the Inditex group, which owns other retailing brands like Massimo Dutti, Pull and Bear, Bershka,
Stradivarius, and Uterque. In 1988, the company started its international expansion in Portugal and other parts of Europe and then to north and south
America and Asian countries. There are over 2100 located in 88 countries. The company usually selects the best and the most expensive real estate
location to open its flagship store like Fifth Avenue in new york, Myeongdong in Seoul, South Korea and much more. In 2010, the company started its
online... Show more content on Helpwriting.net ...
Moreover, Zara move/shipped over 2 million items per week, nothing remains warehouse within 72 hours. The clothes are pre–ironed and hang in
hangers with security and price tag to save stores prime selling time. Every clothing stores nowadays sell clothes on a seasonal basis which mass
produce clothes for the season. But Zara produces and sells new design every 2 weeks, which forces people to visit their stores more frequently
because they could find new designs every time they visit and to buy their favorite designs as soon as possible. This strategy eliminates the idea of
putting discounts and sales in the stores toward the end of the season because of its limited production and Zara's customers soon learned to buy
them quickly before it gets sold out. Moreover, Zara does not spend money on advertisements because of they usually their flagship stores on most
expensive real estate location. This is another strategy that the company is using effectively because this most expensive real estate where most
people who love to shops lives. Thus, eliminating advertisement to be spent on their revenue. Zara recently beats its competitor H&M in profits, sales
and also in the stock market by 8% in 2016 and it still going strong as the margins go up to 11.5% right now. As Zara focus on quick fashion and more
online presences to drive up their sales rather than mass producing clothes and then heavily discount them later on the
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Zara Strategy
Introduction * Definition of terms
* Strategy
The primary goal of strategy is to outline long term plans a company would undertake taking into consideration several factors which affect its business
environment. It is in other words a broad–based formula for how a business is going to accomplish its mission, what its goals should be and what
plans and policies will be needed to carry out those goals.
* E commerce
The online environment is flooded with a lot of transactional activities. It is used by people (consumers) in search of a product or a service,
businesses looking to sell to customers, or buy from other businesses as the case may be and even the government in its dealings with individuals and
corporations. ... Show more content on Helpwriting.net ...
With regards to their products, they use ecological fabrics, organic cotton and manufacture only PVC free footwear.
They even include their transport facilities. Their fleet of lorries is fuelled with 5% biodiesel which cuts their CO2 emissions by 500 tons annually.
Zara.com
Zara's operated hitherto as a brick and mortar company, but soon ventured into the e commerce realm by opening zara.com. However, its main
purpose was to showcase its brand and its products and didn't offer any chances for online purchasing or trading of any form.
The hesitation from launching out into e commerce was as a result of the high rates of product returns from unsatisfied customers. The average in the
industry in around 2005 was 35% to 40%, compared to a much lower 8% to 11% for clothing bought in stores. Zara therefore preferred trading in the
traditional way, with little exposure to the internet.Inditex to venture online in order to stay competitive and hope to overtake its major rivals, being H
and M and Gap.
Zara's Performance.
Current market situation
The clothing sector is at present the second largest in the UK retail sector. The competition has tightened with supermarkets like Tesco launching their
own value home brands. The market has recently been flooded with value fashion as Supermarkets for example launch their own brands. Bruce and
Daly (2006:330) view the entrance of supermarkets into the clothing market has
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Zara Strategy
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Masters in Financial Management
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2011 – 2012
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Zara: responsive, high speed, affordable fashion
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Strategic Management
Prof Dr Peter Verhezen
Quynh Lan Nguyen
Engaging in irregularities is severely sanctioned in correspondence with article 34 of the Examination rules.
We hereby declare that we have not engaged in any such irregularities.
Student(s)'s signature(s) Table of contents
Introduction2
Challenges2
Industry competition3
Positioning and competitive ... Show more content on Helpwriting.net ...
It delivered clothes from European distribution center by air to distribute in the U.S market.
Figure 1: Zara SWOT analysis
Industry competition
To better understand how Zara developed its business strategy, we should look into the fashion industry competition via Porter's five forces model.
Rivalry among existing competitors: The apparel industry is highly competitive with a great number of both local and global competitors. As the
market is mature, its growth is small. Accelerated growth and expansion to new markets are not easy goals to achieve. The barrier to get out of the
industry is quite low for distributors, but high for producers. Most fashion manufacturers moved their production base to low–cost countries like China
as wage and raw materials in developed markets like Western Europe are high. Besides, there is no great discrepancy in terms of quality of products,
so customers make their purchase choices based on price and brand recognition.
Threat of new entrants: The threat of new competitors is medium. The local market (Spain) is not saturated. There is no barrier for distribution
entrance, as it needs low initial cost to start up a shop; however, the entry barrier for production is high.
Substitutes: There are no substitutes, as clothes are basic commodity.
Customer's bargaining power: The bargaining power of customers is medium. There a huge number of customers, not well organized to defend their
interests. Additionally, the
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Zara 's Supply Chain Management
Zara's Supply Chain Management (SCM) System
Ratchanobon Kamdecha
Virginia International University
CMP 570 Enterprise Information Systems
Professor Moses Niwe
October 22, 2014
Table of Contents:
Abstract 3
–Introduction4
–History4
–Production 4
–Design4
–Store5
–Distribution and Procurement5
The supply chain of Zara6
–Rules of fashion supply chain management system7
–The value chain of Zara8
–Zara information system strategy8
Conclusion and Recommendation9
References10
Abstract
This paper presents the unique supply chain management (SCM) system of Spanish garments retailer Zara, the leading and the ... Show more content on
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Introduction
Zara is one of the world largest international fashion distributors, which is extremely competitive business with the most innovative speed–to–market
business model. They are the third largest brand in the garment industry. Zara has become the most innovative retailers in the world. They invented the
concept of fast fashion industry. Zara has changed conditions in the marketplace demand a much more quick response from the organizations and
supply chain to customers.
Supply Chain Management (SCM) management is the success factor in fast fashion business. SCM deals with suppliers, with supplier's suppliers, with
customers and even customer's customers (Galin, Zhelyazkov, 2011). Zara's process focuses from raw materials basis to customer consumption. The
supply chain productivities are a physical product, a combination of time, place, form and function of a product and service proposition. In the fashion
world, where companies are competing on time the need of new abilities are rising.
History
Zara is the most successful retailer brands of Spanish company of the Inditex group. In May 24, 1975, Zara opened the first store in the coastal town
of A Coruna in downtown La Coruna, Galicia, Spain, and opened first retail store by Amancio Ortega and RosalГa Mera. Zara is a Spanish clothing
and accessories retailer in
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Zar A Marketing Strategy
Introduction
Zara was founded in 1975 in Spain. Inditex which is the parent of Zara Company was founded ten years later by Co finder of this company, Amancio
Ortega . Inditex has 7 other brands like Pull &Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and UterqГјe. These companies have the same sales
management approach with a focus on customers. In 1975, Zara opened its first store in A CoruГ±a in northwest of Spain. Today, Zara operates over
2000 stores in more than 88 countries around the world (Lu, 2014).
The scale of production for Zara is close to 450 million items in a single year. According to Vincen, Kantor, and Geller (2013) Zara has enough
knowledge in producing and offering fashion design products with reasonable prices. In addition, Zara is famous in quick delivery of new collection
merchandise to their stores. According to Forbes, other retailers take six months to deliver new items to stores; however, Zara has ability to produce
and deliver new products within two weeks. In fact, Zara had more advantage than any other brands in this fields.
This competitive advantage for Zara is based on controlling business procedures in supply chain. This company is very different from most retailers
who outsource their manufacturing to third party firms in other countries. Zara owns and closely controls their supply chain process which helps them
to have more market demand (Lu, 2014).
Zara Value Chain
A value chain can be described by all activities that help a
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Case Analysis Of Inditex
Inditex group is a Retail fashion group with the famous brands as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara home, and
Uterque . This group has presence in 92 markets. They recently launched Zara into the Vietnam market in September'2016 in Ho Chi Minh City. The
Chairman and CEO of Zara is Pablo Isla. Inditex is a fashion group, started in Spain1975. It is a textile design, manufacturing and distribution firm.
This firm operates with full integration of bricks and mortar stores and online sales. It operates in 39 markets with their online sales, and it has a total
of 7096 stores worldwide.
Zara is major sponsor in many international events, which includes Pantin Classic Pro World Surfing Championship and Moto GP Championship....
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It has 1,725 direct suppliers, 6,298 factories involved in production. The 66% of the factories activity is manufacturing, and other units like cutting 5%,
Fabric 10%, Finishing 9%, Printing 3%, Dyeing and Washing 7%.
Inditex has a good corporate governance in place, where Mr. Pablo chairs the board committee. Mr. Amancio Ortega Gaona, brings his 44 years of
textile industry knowledge on manufacturing operations. Mr. Jose Arnau Sierra, deputy Chairman of the board, brings his experience as State Tax
Inspector on to the table. The other board members include Ms Flora Perez Marcote (Pontegadea Invesiones S.L., 50.1% share capital holder), Ms.
Irene Miller (corporate finance expert), Mr. Rodrigo Gordillo (legal expert), Mr. Carlos Espinosa (state economist), and Mr. Emilio Torres (Investment
Banking expert).
Operations Excellence of Inditex Group
The Inditex group is able to attain its operation excellence through:
Vertical Integration of the supply Chain
Just in time production
Better Inventory Management
Well coordinated Logistics System
Fastest Concept to Store Model
Fast Design
Best in Class Information Technology System
Vertical Integration of the Supply
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JIT Case Study
Introduction There are full of challenge in global manufacturing, especially automotive industry after the second world war, it forces the firms to study
additional methods to improve their competitive. Just–in–time (JIT) is a concept of the management systems in supply chain created by Toyota Motor
Company, it enabled many firms (e.g. Ford, Hewlett–Packard and Nissan) to meet the demands of global competition. It can be expensive to fully
implemented JIT, however, many firms foresee and believe it will produce notable profit for the coming years. The purpose of this paper is to analyse
the performance of JIT in supply chain by the case study of Zara.
2. Literature Review and research framework
2.1 What is JIT
The simply principle of JIT ... Show more content on Helpwriting.net ...
Under JIT practices, Zara control the shipping only 24 hours in the mainland and 48 hours to Asia and US, allow the transport method and time more
flexible because the production and transportation batches are small under JIT production that effective to lower the shipping cost while using
commercial airlines rather than sea transportation.
3.3 Benefits of JIT practice on upstream of Zara
Zara provide regular training programme of suppliers and manufactures to improve the material quality from suppliers and maintain both strategic
capability in the market, it establishes and maintain a long term and stable relationships of trust with suppliers. In JIT, Zara order the actual need
quantity in production to lower inventory, in terms of the supplier, they can forecast the actual demand quantity as to avoid the cost or inventory or
production waste cause by bullwhip
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Zara Is The Most Successful Retailer Brands Of Spanish...
Introduction
Zara is one of the world largest international fashion distributors, which is extremely competitive business with the most innovative speed–to–market
business model. They are the third largest brand in the garment industry. Zara has become the most innovative retailers in the world. They invented the
concept of fast fashion industry. Zara has changed conditions in the marketplace demand a much more agile response from the organizations and
supply chain.
Supply Chain Management (SCM) management is the success factor in fast fashion business. SCM deals with suppliers, with supplier's suppliers, with
customers and even customer's customers. Zara's process focuses from raw materials origin to customer consumption. The output of ... Show more
content on Helpwriting.net ...
More than half of the fabrics are purchased under to make faster response to mid season color changes possible. Zara has four product lines: for
women, men, children and home appliances which has creative team consisting of designers, sourcing specialists, and product development personnel.
In each of products are subdivided in lower garment, upper garment, shoes, cosmetics and complements, as well as Zara kids Zara's headquarters has a
commercial team that consists of designers, market specialists and buyers.
Design
Zara 's designers and customers are inextricably linked. Specialist teams receive constant feedback on the decisions its customers are making at every.
Zara develops just two weeks for a new product and approach their products to stores in each year, launch around 10,000 new designs. Zara has 3,000
in–house designers for men, women and children's wear are located in different halls in a building attached to the Inditex headquarters. Each head
office is equipped with its own unique design facilities and logistics centers from which merchandise is shipped to the stores worldwide twice a week
weekly. Zara produces clothing as per the latest trends in a limited quantity. Zara produces more than 12,000 new designs to the market every year in
the stores globally twice a week. The creative teams worked on products for the current season by creating constant variation, expanding on successful
product items and continuing
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Swot Analysis Of Gap
Another company who use disruptive business model is Walmart. In large retailer industry, Walmart has unique business model then any of their
competitors. They offered everyday low price which is too much for his competitors. They also
Gap is an apparel retail company which was founded in 1969 by Donald Fisher and Doris F. Fisher and their headquartered is located in San
Francisco, California. They are one of the closest competitor in international level. They offer most of their product all over the country, they have
3,700 stores worldwide. Gap product are personal care products for men, women and child who are under five. They were able to grow their brand
through expansion, geographic and brand wise. Gap also have different niches of clothing brands under its name which are Old Navy, Banana
Republic, Piperlime, Athleta and Intermix. Gap Inc. All of their product are available in company website and their owned store. The process to launch
any kind of new lines of clothing involves an 9–month period of centralized planning, production and marketing which is responsible for member of
elite fashion designer and corporate executives. Gap manufactured all most all of their product in third country which save them lots of money in labor
cost because labor cost in those kind of country is relatively cheap. They have also continuing expanding their business internationally by opening more
stores. Gap does aggressive advertising about their product to their potential customer
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How Zara Information System Work
Question 1:
From an analytical prospective, explain how information systems relate to the way Zara runs its business. What types of systems are the most essential
for this company in its current environment?
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. ... Show more content on Helpwriting.net ...
However, its distrubution system is advanced and that there is a few human participation required for the process. For an example, Zara uses optical
reading devices to achieve the task, which leads to a tremendous cost savings in the form of labor.
An information system is a base in today's business world. Everything is electronic. In various businesses, the survival and ability to succeed strategic
business goals is challenging without extensive use of information system. Businesses improve the efficiency of their operations in order to accomplish
higher profitablity. Besides that, information systems are important tools available to managers for achieving higher levels of efficiency and
productiviy in business operations. For an example, Zara uses the PDA technology to gather customer feedback and input.
In today's world of business, everything is computerized and most of the companies use the Internet and information business to help keep their
quality, save time and also cost. It also can reach out to more customers worldwide. For an example, with a website in the internet, it would relay the
message to millions of viewers worldwide regarding the product and service that the particular company can provide and indirectly saves cost in
advertising in television and print advertisments.
An information system is any combination of information technology or support people's activities that support
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The Inditex Group, By Amancio Ortega
Company **
In 1963 a Spanish multinational clothing company known as The Inditex Group, was founded by Amancio Ortega in Galicia Spain. It is made up of
100 companies specializing in textile design, production and distribution. This company started out by introducing a new way of fashion, instead of
offering clothing that was long–lasting at an expensive price, they offered clothing in massive varieties at affordable prices. Now Inditex owns worldly
famous brands such as, Zara, Massimo Dutti, Bershka, Oysho, Pull and Bear, and Stradivarius, Tempe, Zara Home, and Uterque. These brands have
gone on to become corporate owned franchises and have locations all over the world. In 1985 the company had opened 80 Zara stores in Spain alone,
and ... Show more content on Helpwriting.net ...
Industry Analysis
Industry Growth
Growth for Inditex is their expansion on the web, and internationally. Since 2011 Inditex considered online sales to be a new service for customers.
They are highly focused on the ongoing improvement of the commercial transaction in this particularly new channel, so customers can enjoy the
same products and quality of service on line as others do in stores. Zara for one started online sales in china in September of last year and Massimo
Dutti and Zara home did the same in the U.S in October of last year. The goal was to extend e–business to the markets where the company operates
with actual stores. According to Bloomberg business website, the world 's largest clothing retailer, reported accelerating revenue growth after an
expansion of online sales and store openings help drive a five percent profit increase last year (Jarvis, Mulier, 2015). With the decision to enter new
markets and extend the reach of online sales, the company is staying ahead of most of competitors. After boosting the number of stores by five percent
to 6,683 through January, Inditex plans to open as many as 480 outlets this year, including three in New York. Net sales for Inditex reached 15.9 billion
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Essay On Inditex
Inditex group is well–known for its clothing brands, which are of high quality and yet, affordable. Its founder Amancio Ortega, is the 4th richest man
in the world. In 1963, inditex had been established as a dress–making factory, and then started off a small store in Spain by the name of Zorba in La
Coruna, which later changed to Zara. Now it is the world's favorite fashion brand. Zara is the amalgamation of all these qualities as a Spanish clothing
brand and hence become the go–to fashion brand for all. Zara was started as a small store in Spanish, now it is the largest retailer in the world (Lopez
& Fan 2009). Zara started to expand its empire to the rest of the country, then later to Portugal. In 1990s, the store has expanded in France, United
States and most of the Europe. Currently, there are 6500 stores of Zara across 88 countries throughout the world. Inditex has over 7000 stores across the
world. In 1975, it launched the first Zara store and at the ... Show more content on Helpwriting.net ...
Inditex, Zara's parent company, has set Asia as a top priority for its expansion with stores in countries all over the region. With its growth in Asia, Zara
seems to be well positioned as compared to its competitors.
It is suspects that there will be an increase of store expansion in the United States including Zara Home, Zara Kids and one of the other labels such as
Bershka.
Massimo Dutti with its better fashion look will soon have more stores in some of better shopping areas.
There are many attractive growth opportunities in Latin and South America which were close–to–home for ZARA for cultural and strategic perspective
and hence within its risk appetite (Crofton & Dopico, 2012).
2) Why would a retailer introduce its online store country–by–country? Why was Inditex slow to embrace online sales when it's so tech–savvy in other
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Zara Supply Chain Essay
Introduction Zara and Benetton are two of the most notable fashion stores in the world. Remarkable for its products and notable for its exceptional
supply chain management. This report will discusses the supply chain management for Zara and also Benetton which will tackle the areas of supply
chain and their contribution to how the company provides its products to its customers.
Business Background
Zara is a Spanish clothing and accessories retailer that was founded by Rosalia Mera and Amancio Ortega in 1975. It is the leading retail store of the
Inditex group, which is a fashion group who owns multiple brands such as, Massimo Dutti, Uterque, Stradivarius, and Bershka and also pull and Bear.
Amancio Ortega unbolted the first ... Show more content on Helpwriting.net ...
Supply Chain Models
Zara and Benetton's supply chain both share some common components within their supply chain models, but a few distinguishing factors make them
their own. All supply chain models must include planning, designing, maintenance and control of all materials and information in order to
efficiently satisfy its customers' needs and wants (Schroder, 2000). Zara being known for their 'fast fashion' is claimed to take only two weeks to
develop a new product and have shipped to stores, and ready for shelves. Zara is a vertically integrated retailed, meaning that their supply chain is
owned by their company and usually each member of the supply chain produces a different product or service. Unlike other apparel retailers, Zara
controls most of the steps included in their supply–chain, including designing, manufacturing and distribution of the products. Zara uses a just–in–time
(JIT) system, with this model it allows the company to have self–containment throughout the stages of materials, manufacturing, product completion
and distribution.
On the other hand, most of the manufacturing of Benetton is done by the company itself. But the supply side is heavily consisted of 'contractor's –
which are companies owned, or part owned by Benetton employees. Employees that provide services to the factories,
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Zara Brand Managament
Kazakhstan Institute of Management, Economics and Strategic Research
[pic]
BRAND MANAGEMENT MK 3214
Individual Assignment
Theme: "Zara" brand
Instructor: Elmira Bogoviyeva
Written by: Tulegenova Aigerim– 20071441
[pic]
Abstract
The focus of this paper is to analyze the one of the most popular brand name called Zara. And while reading this report there can arise a question
about what is so special about Zara? The challenge is that it is a brand. It is worth pointing out that this is a well known brand in the retail and
fashion industry of Kazakhstan. Its name is well known all over the world, but it is very young brand in our country. Therefore, I took this brand in
order to show how young and popular brand that recently ... Show more content on Helpwriting.net ...
However, it is also needed to point out that the company prefers to establish its own branches to take better control, but in certain markets, politically
or culturally complicated or that present certain risks, establish deductibles or agreements with local partners (franchising). Today, brand nearly owns
90% of Zara chain stores all over the world.
Brand Uniqueness Not many people know this, but Zara is a very unique fashion company compared to other mega fashion brands. Instead of focusing
on inventing the next clothing item people want to buy , Zara built an advanced technology that can bias or push their entire clothing line production in
blazing speed to meet what real customers are actually buying across the stores. This "fast fashion" system depends on a constant exchange of
information throughout every part of Zara's supply chain. The fashion retailer has become one of the most successful fashion companies in the world –
based on their unique way of manufacturing and distributing their clothes. As opposed to most fashion companies, Zara never manufactures lines of
clothing and hope that the market will like it. Instead, they have highly efficient method for tracking what the market wants to buy, getting it into their
factory, biasing their line of production accordingly, and distributing back to the stores. This behavior/technology differentiates them, as they are able
to meet their marketers' needs rather than promoting
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Fashion Industry China: Csr Case
Fashion Industry China: CSR Case
Subject Submission Date Class Team Members CSR cross–analyses on fashion Industry Tuesday 15, 2012 MBA Pudong– Corporate Social
Responsibility Christiane Pagsisihan Damien Dandelot Jose Antonio Mallen Tendai Chitapi Vera Boisa Harbhajan Khalsa
Executive Summary
The research paper trough four main Corporate Social Responsibilities (CSR) issues (Children Labor, Working condition, Environmental impact and
Environmental Sustainability) indicates several glaring trends within the fashion industry. First of all, there appears to be an overall evolution in the
CSR practice and actives during the last decade in the fashion industry. Moreover, it seems evident that CSR is more and more considered as important
... Show more content on Helpwriting.net ...
These table has been made according some information coming from diverse councils and web site, but with a primarily focus on the Nordic Fashion
Association, Code of Conduct and Manual (2012). Table 2 – List and describe the CSR –related issues relevant to the industry CSR issues relevant to
the fashion industry Description of the issue Human Rights Exploiting people for profit. This concern is widespread throughout the fashion industry
worldwide. Freedom of association and the effective Ensure that workers participating in unions are not subject to discrimination recognition of the
right to collective bargaining or punitive disciplinary actions. Forced Labor Trafficking and exploiting human beings for the purpose of monetary gain.
Issues Child Labor Discrimination Working Conditions Wages, payroll records and deductions Labor contracts Environment Corruption and Bribery
Ethical Animal Ethics Models Employing children under the legal age to work in factories, sweatshops or even in their own homes. Unfair treatment
in favor or against a person based on their religious affiliation, skin color, nationality, gender, race, economic class etc. Forced labor. Extended work
hours with little or no compensation. Occupational health and safety. Withholding pay and legal documentation. Refusing to negotiate with unions.
Abuse of power and authority. Toxic waste. Heavy chemicals and dyes. Abuse of power by officials, corporate or otherwise, for
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Case Study Of Zara
Marketing Strategy
Contents Page
Introduction2
Background2
Discussion3
Products and Services3
SWOT Analysis3
Competitive Analysis4
Competitive Advantages5
Sustainability5
Recommendations5
New Product/Service5
Marketing Strategy6
Conclusion7
References8
Introduction
This report is mainly focusing on studies of marketing strategy. By analyzing and discussing the case of Zara, we will be able to have a more in depth
analysis of companies and their marketing strategies.
In the background section, basic knowledge of marketing strategy will be introduced.
In the discussion section, an analysis of Zara's existing product and service will be listed and an S.W.O.T. analysis is done to figure out the company's
current situation and position in the marketplace. ... Show more content on Helpwriting.net ...
Also a marketing strategy will be suggested to improve Zara's business.
Background
Firstly, some commonly used terms and their definitions will be introduced in this report in order to provide some basic knowledge and understandings
of the principles and studies about marketing strategy planning.
SWOT Analysis: This is a strategic planning method which used to evaluate the strength, weakness, opportunities and threats of an organization
involved in a certain business. (Friend, Graham. 2009)
Competitive Analysis: This is an analysis of the organization's strength and weakness against its
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Zara vs. Hm
VS.
H&M vs. Zara Comparing Marketing Strategies By: Heather Lynn, Shannon Bennett, Harriet Joines
Table of Contents
Introduction Zara History Performance Financials Recent Expansions Threats and Opportunities Current Marketing Strategy H&M History
Performance Financials Recent Expansions Threats and Opportunities Current Marketing Strategy Our Marketing Plan Marketing Objectives SWOT
Analysis Marketing Mix Competitors Summary Works Cited 3 4 4 5 5 6 6 7 7 7 10 10 11 12 12 13 13 15 15 17 17 18
2
Introduction For this term paper, our group will be comparing two companies, H&M and Zara, and their marketing strategies and taking the
information we compile and developing a new marketing plan for one company. We will be analyzing... Show more content on Helpwriting.net ...
Amanico
4
Ortega Gaona, CEO, founder, and Spain's richest man founded Zara in 1975. Zara's first store was in A Caruna where the headquarters now lay and
featured lower priced lookalikes of high end, popular products selling to women, men, and children (Zara (Clothing) 2009). Beginning in the nineteen
eighties Zara began experimenting with differentiating the design, manufacturing and distributing progression in order to condense lead times and
respond faster to new trends. Gaona considered this to be "instant fashion." Instead of individuals, Zara used information technologies and groups of
designers to base its improvements in fashion. In 1998, the company began its international development through Portugal's second city, Porto. By
1989 Zara entered the United States and by 1990 entered France. Zara's international development expanded to Mexico in 1992, Greece in 1993, and
Belgium and Sweden in 1994. Zara continued to open stores around the world until there were stores in seventy countries. This includes more than
519 stores in Spain, 116 stores in France, 87 stores in Italy, and 45 stores in the USA (Zara: Cool Clothes Now, Not Later). Zara Performance:
Financials: Since Zara is a subsidiary of the parent company Inditex, this report includes some financials about Inditex. According to the
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The Vision And Mission Statement Of Zara
Following is our vision statement:
"To attain market leadership through unmatched quality, a diverse and unique product mix, empowered employees, world–class systems, and the
highest ethical and professional standards."
Source: http://www.zaratextiles.com/vision.php
Mission Statement! "ZARA Textile is devoted to achieve consistent improvement in the system of providing products & services to the customers
through On Time Delivery & Enhancing Customers Satisfaction by means of Quality and Value."
Source: http://www.zara.com/us/en/company/
our–mission–statement–c18001.html?#utm_referrer=http%3A%2F%2Fwww.zara.com%2F%3Fgo%3Dhttp%253A%2F%2Fwww.zara.com%2Fshare%2F
Zara ' is the flagship chain store of ... Show more content on Helpwriting.net ...
The creation of these two distributions centers it will be a test for Zara, it will be like a duplication of its business model and also a big signal of
alarm towards the competitors but it also be a failure if it isn't well managed. I would like also to consolidate the transnational strategy by adding two
more elements: a management team that will be in charge with the coordination of all activities regarding the development of the two distributions
centers and a council will be added also in order to supervise and improve the communication between the product divisions and the distributions
centers (Exhibit 1). The information from the local centers will be sent to the Spain headquarters, in this way; the "design–on–demand" model will be
more adapted to the various country specificities. An optimal solution can be the combination between cost leadership and local responsiveness. 6.
Conclusion Zara is one of the biggest retailers in the fashion industry. Its business model is unique: Zara gathers the information from the customers
and then respond in a fast manner to their demands. As long as Zara is keeping its philosophy and make some modifications regarding its strategy in
order to face the futures challenges it will be impossible to assist to the disappearance of this retailer in the near
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Case Study On Zara
ASSIGNMENT SUBMISSION FORM
Student NameD.N.E.Seneviratne
Student Number13208064
Assessment TitleInternational Marketing– 'Zara: the Spanish retailer goes to the top of world fashion' Case Study
CourseBachelor of Science(BSc) in MIS
Module code(MKT3001L)
LecturerDr. Markus Vanharanta
Tutor (if applicable)–
Date Submitted04/08/2014
OFFICE USE ONLY
Date Received
OFFICE USE ONLY
GRADE/MARK
A SIGNED COPY OF THIS FORM MUST ACCOMPANY ALL SUBMISSIONS FOR ASSESSMENT.
STUDENTS SHOULD KEEP A COPY OF ALL WORK SUBMITTED.
PROCEDURES FOR SUBMISSION AND LATE SUBMISSION
ENSURE THAT YOU HAVE CHECKED THE SCHOOL'S PROCEDURES FOR THE SUBMISSION OF ASSESSMENTS.
NOTE: THERE ARE PENALTIES FOR THE LATE SUBMISSION OF ASSESSMENTS. FOR FURTHER INFORMATION
... Show more content on
Helpwriting.net ...
This is a situation may captures the company's current market rather than snatching to a new market segment and increases the market share.
–Difficulty in managing
When multi brands are owned by a parent company or group (Zara Inditex) it would be hard to manage products under many brands.
–Expectations on new products
Customers expect the same or even greater standard of quality from new products as they may have experience the quality of the existing products.
–Lack of brand focus and clarity
When maintaining several brands simultaneously it may reduce focus on certain brands.
–Risk of brand equity dilution
Sometimes it may reduce the effectiveness of the brand name since consumers sees the brand name everywhere and may not consider it in the same
faith they once did.
–Negative feedback effects
Negative feedback effect of new products may damage the goodwill of other
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Traditional Marketing Is No Longer Working
We can see every day thousands of adverts, through various media channels. But we are already tired of this overexposure and this traditional marketing
is losing its effect. What's new? The marketing world is changing from traditional advertisements towards finding new methods of reaching consumers
in a non–aggressive way. It's really important that the evolution of technology has created new opportunities for marketers, and blogs are one of the
key points of this new age.
Thanks to the introduction of Web 2.0, the blogging phenomenon has become an importantmarketing channel, as it has enabled a new way of
communicating and sharing information. But ... what's new in blogs? The reason because blogging has quickly became such a popular tool for internet
communication is just because the users can generate the content. Users can create the content. It's no more one side information, but two sides! There
is a conversation between two parts.
Fashion blogs as a communication channel have become a really important topic in the
Spanish media in recent years. Fashion blogs can help fashion companies to reach out new customers using this new, easy, and inexpensive tool. But
they can be used not only as an "attracting tool" but also as an engagement and customer fidelity tool.
We know that in today's world of clothing retail, internet and social media are playing an important role in helping consumers find the items and the
information they are looking for. This is the reason why it's
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Global Chic : The Globalization Of Fashion
Ana Pascual–Leone
Capstone Draft
November 5, 2014
Global Chic: The Globalization of Fashion
Abstract:
This paper aims to investigate the effects of globalization, examined through the framework of hybridity/glocalization, on the fashion industry by
examining the shift in the nature of ethnic, cultural and national references in high–end designer collections, and the growth of fast–fashion houses'
global success. High–end designers have been using cultural references as their inspiration for decades. However, the increasingly globalized world
has changed the nature of cultural references. There has been a shift away from collections being inspired by one country or culture, towards a
multicultural influence. Driven by the idea that ... Show more content on Helpwriting.net ...
Philosophy, religion, language, the arts, and other aspects of culture spread and mixed as nations exchanged products and ideas. In the 15th and 16th
centuries, Europeans made valuable discoveries in their exploration of oceans, including the start of transatlantic travel to the "New World". Global
movement of people, goods, and ideas expanded radically in the following centuries. Early in the 19th century, the development of new forms of
transportation, such as the steamship and railroads, and telecommunications that compressed time and space allowed for increasingly rapid rates of
global interchange. In the 20th century, automobiles, intermodal transport, and airlines made transportation even more rapid. The advent of electronic
communications, most notably mobile phones and the Internet, connected billions of people in innovative ways over the past two decades.
Globalization is a phenomenon that has been on the forefront of the international arena for decades. With innovative technological advancements,
national lines that previously identified and differentiated countries are constantly being blurred. Cultural globalization has increased cross–cultural
contacts however it is also accompanied by a decrease in the uniqueness of once–isolated communities. For example, Sushi is available in Germany and
Italy as well as Japan, and Starbucks has become a recognizable household brand on all continents. This phenomenon is not only applicable to food but
to all aspects of
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Creativity Model Of Zara
In the following the example of Zara is compared to the creativity approach of H&M. Zara is the major brand of the Inditex Group that is one of
the world's largest fashion retailers. The group is composed out of eight brands: Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho,
Zara Home and Uterque; comprising 6700 stores all over the world. Zara is a Spanish company and has more than 2000 stores located in 88
countries. The subsequent table compares and gives an overview on each brands creativity approach: H&MZara Doesn't own factories =
DelocalizationOwn factories = Local industrial model that makes possible the supervision of the entire production line of the brand (flexibility,
variety, quantity) The lead times vary between a few weeks to six monthsFrom the idea to the shops в†’ maximum 4 weeks Zara is fabric driven.
Designs of the collection are developed with the fabrics that are available. This permits them to win time.... Show more content on Helpwriting.net ...
The in–house designers have to envisage the products of the three upcoming seasons and attend a conference every week in order to share their own
ideas. As ideas converge and interact, new ones will spawn and this will only benefit to the brand.The collections are develop by creative teams
(composed of designers, sourcing specialists and product development) rather than only designers. The teams work on different products, build on
styles that were previously successful. Designers are trained in order that they limit the number of reviews and changes. This has for consequence to
speed the development process. But they are also train in order that they are able to make quick
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Inditex Case Study
" INDITEX GROUP – ARE ITS "FAST FASHION" RESULTS SPEEDING UP AGAIN AFTER RECENT SLOW DOWNS ? "
This case study has been written exclusively for use on the course Strategic Financial Management FINA 1035 at Greenwich University Business
School and its partner institutions. It is to be used exclusively for this purpose. No part may be copied , emailed or reproduced for any other purpose
other than stated above. Much of the data and material included in the case study is taken from the annual reports and accounts of the Inditex Group, its
public statements and from its website .inditex.com. All other sources are shown in the case study. Author : Scott Duncan Lecturer Greenwich
University Business School July 2010
INDITEX GROUP – ARE ... Show more content on Helpwriting.net ...
Stores have "cutting edge" look and are meeting points for fashion, music and street art Latest trends in young women's clothes and accessories
Women's underwear, lingerie and nightwear Items for home eg home textiles, bedclothes, bathroom and table linen, glassware, cutlery and children's
bedding Fashion accessories eg handbags , footwear, leather goods and costume jewellery
Bershka
Stradivarius Oysho Zara Home
Uterque
The firm's stores answer to popular trends by telling designers in Spain what customers are asking for locally. Inditex responds in about two weeks
with new designs. Amancio Ortega Gaona, Spain's wealthiest businessman, founded Zara in 1975 and later created Inditex as a holding company.
He got his start in the clothing business at the age of 13, when he went to work for a local shirtmaker in A Coruna , Spain, delivering the shop's
goods, which included lingerie and dressing gowns. Ortega worked his way up to become an assistant manager, then shop manager, by the early
1960s. These positions gave Ortega experience not only in dealing directly with customers but also in purchasing fabrics and other materials for the
shop's line of apparel.
Working out of his sister's home, Ortega began developing his own designs. One day in the early 1960s, he hit upon the formula that was to become
central to the operations of Inditex: that of reproducing popular fashions using less expensive materials in order to sell highdemand clothing items at
lower
... Get more on HelpWriting.net ...
Strengths, Weaknesses, Opportunities, And T
SWOT Analysis– Strengths, Weaknesses, Opportunities, and Threats SWOT Analysis SWOT analysis is extremely advantageous tool meant for
understanding and additionally decision–making for a couple of situations inside corporate in addition to companies. SWOT is a short pertaining for
Strengths, Weaknesses, Opportunities, and Threats. The SWOT try headings supply a fantastic structural thing for considering strategy, position with
the direction of a company and even business concept. The internal and external environment is an important part of the strategic planning process.
Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified
as opportunities... Show more content on Helpwriting.net ...
The SWOT matrix: A firm should not necessarily lead the more profitable opportunities. Rather it may have a better chance at developing a competitive
advantage by identifying a fit between the firm's strengths and approaching opportunities. In certain cases, the firm can be overcome a weakness in
order to fix itself to purse a compelling opportunity. To develop strategies that take into accounts the SWOT profile, a matrix of these factors can
construct. The SWOT matrix is shown below: StrengthsWeaknesses OpportunitiesS–O strategiesW–O strategies ThreatsS–T strategiesW–T strategies
S–O strategies compress opportunities that are a good fit to the company's strengths. W–O strategies overcome weaknesses to purse
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Zara: the Technology Giant of the Fashion World
ZARA: THE TECHNOLOGY GIANT OF THE FASHION WORLD 2010 BACKGROUND Zara brand is the flagship chain store of Inditex Group;
the Inditex Group is integrated by: ZARA, OYSHO, UTERQГњE, BERSHKA, STRADIVARIUS, MASSIMO DUTTI, and PULL AND BEAR. The
owner of Inditex Group is the tycoon Amancio Ortega, the group headquarter is located on CoruГ±a, Galicia, Spain, this was the place where the first
Zara store opened in 1975. Zara has resisted the industry–wide trend towards transferring fast fashion production to low–cost countries. Perhaps its
most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. Its
first store featured low–priced lookalike products... Show more content on Helpwriting.net ...
Mango: Mango is a competitor of Zara is a clothing brand from Barcelona, It has more than 1,000 stores in 92 countries located on five continents
130 points of sale having been added in 2006, The firm has over 7,800 employees, 1,850 of whom work in the Hangar Design Center and headquarters
is in Barcelona. Wal–Mart Stores, Inc. branded as Walmart, is an American public corporation that runs a chain of large, discount department stores.
The company was founded by Sam Walton in 1962, Walmart operates in Mexico as Walmex, in the United Kingdom as Asda ("Asda Wal
–Mart" in
some branches), in Japan as Seiyu, and in India as Best Price. The CEO is Mike Duke. MAIN PROBLEM The main problem of this case is that
maybe Zara moves too much fast than the customers might want or desire, also is a problem because the clients sometimes need time to think or
have to Money to buy the clothes, when Zara tries to be on the way or with the moda what they are really doing is changing to fast, also if they take
the data from the customers in order to convert it into new designs they are supply the need of innovation for the customer but not the fashion trend.
When Zara changes that fast they have two options, the first one is change fast items of a trend that really don't work or in the odder hand change a
trend or items that are really "on fire" that are being
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Inditex And Its Impact On The World
The names Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and UterqГјe may sound unfamiliar to some but they are the
brain child of Amancio Ortiga, founder of Inditex. Amancio Ortega is a native of Spain and is now considered the 4th riches person in the world
according to Forbes Magazine (At a Glance, 2014). Starting as a small company that produced women's night clothes for garment wholesalers, Inditex
grew after a large canceled order (Sardar, 2012). The first store Zara was created for canceled items but eventually turned into the company's flag ship
store. Currently Pablo Isla Alvarez de Tejera is now the Chairman and CEO of Inditex after the retirement of Ortega. He started as chairman in 2011
but started ... Show more content on Helpwriting.net ...
This was trailed by the brand 's universal extension toward the end of the 1980s and the progressive dispatch of new retail ideas: Pull&Bear, Massimo
Dutti, Bershka, Stradivarius, Oysho, Zara Home, and UterqГјe.
This client center reinforces an operational structure that includes all phases of the style worth chain (outline, assembling, appropriation and deal in
restrictive stores) (Sustainable Business Model, 2014). The client guarantee is additionally the main impetus behind the incorporation of our economic
and ecological approaches utilized all through the Group 's production network. Inditex's biggest competitors are Gap, H&M, and Benetton
internationally (Sardar, 2012). Headquartered in Arteixo, Spain, Inditex has emerged as a leader in the fashion world.
Inditex's supply chain is exclusive in that half of construction happens in close vicinity to the Group 's ' head business locales and logistics stages in
Spain. This trademark adaptability reaches out to Inditex 's suppliers, which have become as an inseparable unit with the organization (Annual
Report, 2013). Strategically having the suppliers close to Spain is integral to Inditex's success and its huge supplier base of 1,500. Inditex also utilizes
other markets internationally and both local and global suppliers are bound to high environmental standards. This helped Inditex revenue grow 10% to
$19.15 billion at the end of the last fiscal year (Sardar, 2012).
Their commitment to
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Essay On The Five Forces Of Zara
ZARA
INTRODUCTION
ZARA, a branded Spanish clothing and accessories retailer, was founded in 1975 by Amancio Ortega and Rosalia Mera. It is the flagship retail store
of the Inditex group, a fashion group that owns many other brands such as Pull and Bear, Uterque, Bershka, Stradivarius and Massimo Dutti. Amancio
Ortega opened the first Zara store in a central street in Galicia, Spain under the name Zorba. Although another store a few blocks away was also
named Zorba, the molds of the letters for the sign was already created and it was rearranged, thus coming up with the name Zara. In 1980, the company
started its international expansion in Portugal. In 1989, they penetrated the US market and in 1990, they entered the French market. In 2003 ... Show
more content on Helpwriting.net ...
The vertical integration model (with its own logistics, designers and manufactures) also brings a flexible structure for Zara to adopt fast fashion.
According to Mihm, Zara spends very little on advertisement in comparison to their competitors. For example, Gap has many television advertisements
and magazine ads while Zara keeps advertisement to a strict minimum, allowing for more cost–effective marketing strategies. Zara focuses on bringing
reasonable quality products to their consumers and creating brand awareness through word of mouth, and maintaining a reputation for rapidly adapting
to changing fashion
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Zara Strategic Analysis: Fast Fashion Retailer's Success

  • 1. Zara Strategic Analysis Research paper Zara Students name: Instructor name: Class: Date: 1. Executive summary Background Information Inditex is an international Spanish company that designs, manufactures, and sells apparel, footwear, and accessories for women, men and children through its chains and shops around the world. Zara is the largest and internalized of all the Inditex products such as: Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho. It was firstly open from a businessman called Amanico Ortega in Spain. He has firstly opened Zara in 1975.At 2001 Zara opened 507 stores all around the world. Now in 2012 it has 4400 stores in 73 countries all over the world. The primary place that all the Zara's clothes are ... Show more content on Helpwriting.net ... The company should be aware of duties, obligations and tariffs. They are based on the classification code of the goods, valuation and country of origin. Albania has a very non solid economy and the entry of a new product is very difficult for the political reasons that I have mentioned above. Since the buying power is very low the entering of a big company as Zara is potential vulnerable. * Social – Changes in social trends and in social life can force on the demand for Zara's products and the availability and enthusiasm people to work. The company must work in relation with costumers need, trends and demand as a result of change in generation choices. Even thought the prices of Zara are relatively low this is a very good point in their favor if they enter in Albanian market. Because Albanian people cannot afford products that have high prices. Zara can be afford from 60% of the population. * Technology– Technology is becoming advanced and innovative in today's world. Online shopping, bar coding and computer aid designs are helping people to do business all over the world. The advanced of the technology has made possible the reduction of costs and the improvement of
  • 2. quality. These developments can benefit the Zara consumers as well as the organization itself by providing the efficient source of technology service. This point is something that Albania needs because; it is a country that is developing ... Get more on HelpWriting.net ...
  • 3. Analyse of Zara AUDIT DE DISTRIBUTION Introduction I. Fonctionnement et organisation A. Les faits marquants et leur interpretation stratГ©gique 11 BOrganigramme et management 12 CStructure de l'actionnariat 14 D. Contribution des mГ©tiers Г la croissance et aux rГ©sultats du groupe 15 II. Les choix stratГ©giques III. Ce que les comptes nous rГ©vГЁlent A. Une croissance continue dans un environnement dГ©favorable B. Un cycle long renforcГ© C. Un cash flow important D. Les dettes de Zara, poste clГ© de l'annГ©e 2008 E. La rentabilitГ© F. Bilan Conclusion Sources ANNEXES INTRODUCTION Créée en 1975 avec son premier point de vente Г Corogne, l'enseigne espagnole Zara a su, en l'espace de 34 ans, conquГ©rir la scГЁne internationale. Appartenant... Show more content on Helpwriting.net ... Aussi, la fonction logistique a un rГґle fondamental qui contribue Г un avantage compГ©titif car Zara a mis en place une grande plate forme distributive Г la Corogne, reprГ©sentant un hub ou se concentrent les produits provenant du groupe et ceux rГ©alisГ©s par les fournisseurs externes afin de les envoyer. Leur organisation au niveau des entrepГґts permet l'envoi de plus de deux millions de modГЁles. Ces derniers sont divisГ©s en deux parties, l'une pour les marchandises pliГ©es et l'autre pour les modГЁles suspendus. La diffГ©rentiation vis Г vis des concurrents L'objectif qui permet Г l'entreprise Zara de se diffГ©rencier est de maГ®triser l'ensemble de la chaГ®ne de valeur qui comprend la qualitГ© des matiГЁres premiГЁres, le contrГґle de la fabrication des produits, la gestion efficace des rГ©seaux et des circuits de distribution, la formation et le professionnalisme des vendeurs, la crГ©ation et la qualitГ© du design, les actions de dГ©veloppement et de fidГ©lisation, la gestion de l'image de la marque et de ses valeurs Г travers des projets humanitaires, culturels et sociaux. En effet, Zara privilГ©gie une politique environnementale et une politique de protection des animaux. La politique environnementale est respectГ©e Г travers : – les boutiques : Г©conomie d'Г©nergie, magasins eco–efficace, rГ©duction de la production des dГ©chets et recyclage, Г©quipe sensibilisГ©e Г cette protection. – les services rendus aux clients : ... Get more on HelpWriting.net ...
  • 4. Company Analysis: The Company Overview Of Zara II.Company Overview a.Company background of Zara Zara is established in 1975, as the flagship brand of Inditex group, which founded by Amancio Ortega. In a short period, Inditex group has become one of the world's top fashion retailers with more than 4000 stores across 82 countries around the world and more than 50% is accounted as Zara's. Another Inditex brands which operate worldwide are Massimo Dutti, Oysho, Stradivarius, Zara Home, Pull and Bear, and Uterque. By seeing the Inditex's brands list, it can be concluded that Inditex almost covers all aspect in fashion industry (Zara 2008). b.Concepts of Zara Zara's goal is to offer fashion at reasonably priced level in moderate quality products. Zara has a slightly different business model ... Show more content on Helpwriting.net ... Zara only added two store maximum per year. In 1990, Zara opened its first store in Paris, which is the capital of style and the initial spot for later growth in Europe (Cervinho & Bonache 1996). After that Zara open some store in Mexico for South America representatives and trailed by Greece and Malta in 1992 and 1993. The only exclusion for this stage is the initial opening for USA store which is far away from the Spain. This is happened since Zara wanted to create brand awareness and getting global reputation in fashion industry (Martinez 1997; Cervinho & Bonache ... Get more on HelpWriting.net ...
  • 5. Swot Analysis Of Zara Company Name and background Zara is a Spanish clothing and accessory retail company founded in 1975 by Amancio Ortega and RosalГa Mera. It is the main brand of the Inditex group, the world's largest apparel retailer. Zara also owns brands such as Massimo Dutti, Pull & Bear, Bershka, Stradivarius, Oysho, Zara Home, and UterqГјe. Zara's strategy is to offer cutting edge fashion at affordable prices by following fashion and identifying which styles are "hot", and quickly getting the latest styles into stores. They can move from identifying a trend to having clothes ready for sale within 30 days (whereas most retailers take 4–12 months). This is made possible by controlling almost the whole garment supply chain from design to retail. Zara, as of 2017, manages up to 20 clothing collections a year. Products: Their online and outlet stores carry men's and women's clothing, as well as children's clothing (Zara Kids). Zara's products are supplied based on consumer trends. Its highly responsive supply chain ships new products to stores twice a week. All of the clothing is processed through the distribution center in Spain. They produce over 450 million items per year. Target audience: Zara's target market is young, price–conscious, and highly sensitive to the latest fashion trends. They segment their product line by women's (60%), men's (25%) and the fast growing children's (15%) department. Internet marketing strategies: 1. Zara utilizes Social media marketing as a form of reaching ... Get more on HelpWriting.net ...
  • 6. What Are the Three Levels at Which a Product Can Be Seen?... Assignment No.9 Rome Business School Q1 What are the three levels at which a product can be seen? In response, use a concrete example of product. The product is defined as a "thing produced by labor or effort or the "result of an act or a process"and stems from the verb produce from the Latin 'produce ' which means to lead or bring forth '. The first economic use of the word was by Adam Smith, known as the father of modern economics. –Kotler et al (1989) For marketers, it is useful to divide the product into three main categories, being the Core Product ( Also known as Core Benefit), the Actual product and the Augmented Product. You can see them in the diagram below with some examples of what they... Show more content on Helpwriting.net ... From a geneder split point of view, adidas NEO is targetting primarily the girls who account for two–thirds of the business. The Original division allows adidas to increase its reach into the lifestyle market, without losing sight of its long heritage as the original performance brand. The Original division is geared specifically toward consumers who may be less active sports participants, but who are style setters and style leaders. It is these people who set the trends which are later adopted by the mass market. Originals speak to the needs and values of the lifestyle consumer with concepts that are smart, cool, positive, modern and alive. Adidas Originals are the perfect fusion of heritage sport authenticity and global street style. Lastly, for the sports–elite Adidas opened Adidas Sports Style . Adidas defined the last one as the "Future of sportswear, which includes the labels Y –3 , Porsche Design, Adidas SLVR and Adidas NEO. Their positioning statement was "Style your life" . The overallmarketing statement that ties these three product categories is "Adidas is in all". They made these product lines for the general public, but the main focus was on supplying the sports wear of the major sports , focusing on football, tennis, basketball, cricket and athletics and rugby. b) Manufacturing level: Adidas owns four factories in China, the US, Germany and Japan, as well as sharing manufacturing with 863 other factories worldwide, 60% being in Asia.
  • 7. ... Get more on HelpWriting.net ...
  • 8. Zara It for Fashion Case Study Executive Summary Zara has relied on Personal Digital Assistants (PDA's) and Point of Sales (POS) terminal operating on Microsoft DOS which are not linked to the headquarters or other stores for its daily transactions. Although, the system has proved to be stable and reliable over time, it has become obsolete and cannot be supported by the providers. I recommend that the company invest on a new system like Windows, UNIX or Linux operating system which will enhance connectivity and flexibility in operations and information flow. Investing in a cutting edge technology though may be capital intensive initially; it will ultimately improve efficiencies across board and provide new learning opportunities for the entire workforce. ... Show more content on Helpwriting.net ... 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. Fulfillment: Fulfillment or shipping clothes to stores to satisfy orders involve other group of commercials. They determine which store s would get available inventory and which would not base on past selling record. They work with product manager to determine future production for each SKU. They could also ship items that stores didn't order like new garments. Ordering and fulfillment should be aligned with a modern IS Design and manufacturing Stores are located in prime retail districts and layouts are changed frequently. Zara introduces approximately 11 000 new items in a typical year while competitors average 2000–4000. Zara vertically integrated manufacturing with CAD which gives room for flexibility and quick turnaround. Designs and cutting of fabrics are done in–house. Garments are delivered to the stores with prices ready for the rack. IS and Commercial Process Zara's approach to information technology was consistent with its preference for speed and decentralized decision making. No formal process on IS investments. Low It spending of 0.5% of revenue compared with 2% by competitors. As the head of IT for Inditex, the holding company atop Zara, there must be meeting point with Bruno Ocampo Sanchez, technical lead for POS system on the
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  • 10. Swot Analysis Of Zara The business that I would like to examine is called Zara. Zara is in a retailing industry that was founded in 1975 by Amancio Ortega and Rosalia Mera in Spain. It is a flagship retail store of the Inditex group, which owns other retailing brands like Massimo Dutti, Pull and Bear, Bershka, Stradivarius, and Uterque. In 1988, the company started its international expansion in Portugal and other parts of Europe and then to north and south America and Asian countries. There are over 2100 located in 88 countries. The company usually selects the best and the most expensive real estate location to open its flagship store like Fifth Avenue in new york, Myeongdong in Seoul, South Korea and much more. In 2010, the company started its online... Show more content on Helpwriting.net ... Moreover, Zara move/shipped over 2 million items per week, nothing remains warehouse within 72 hours. The clothes are pre–ironed and hang in hangers with security and price tag to save stores prime selling time. Every clothing stores nowadays sell clothes on a seasonal basis which mass produce clothes for the season. But Zara produces and sells new design every 2 weeks, which forces people to visit their stores more frequently because they could find new designs every time they visit and to buy their favorite designs as soon as possible. This strategy eliminates the idea of putting discounts and sales in the stores toward the end of the season because of its limited production and Zara's customers soon learned to buy them quickly before it gets sold out. Moreover, Zara does not spend money on advertisements because of they usually their flagship stores on most expensive real estate location. This is another strategy that the company is using effectively because this most expensive real estate where most people who love to shops lives. Thus, eliminating advertisement to be spent on their revenue. Zara recently beats its competitor H&M in profits, sales and also in the stock market by 8% in 2016 and it still going strong as the margins go up to 11.5% right now. As Zara focus on quick fashion and more online presences to drive up their sales rather than mass producing clothes and then heavily discount them later on the ... Get more on HelpWriting.net ...
  • 11. Zara Strategy Introduction * Definition of terms * Strategy The primary goal of strategy is to outline long term plans a company would undertake taking into consideration several factors which affect its business environment. It is in other words a broad–based formula for how a business is going to accomplish its mission, what its goals should be and what plans and policies will be needed to carry out those goals. * E commerce The online environment is flooded with a lot of transactional activities. It is used by people (consumers) in search of a product or a service, businesses looking to sell to customers, or buy from other businesses as the case may be and even the government in its dealings with individuals and corporations. ... Show more content on Helpwriting.net ... With regards to their products, they use ecological fabrics, organic cotton and manufacture only PVC free footwear. They even include their transport facilities. Their fleet of lorries is fuelled with 5% biodiesel which cuts their CO2 emissions by 500 tons annually. Zara.com Zara's operated hitherto as a brick and mortar company, but soon ventured into the e commerce realm by opening zara.com. However, its main purpose was to showcase its brand and its products and didn't offer any chances for online purchasing or trading of any form. The hesitation from launching out into e commerce was as a result of the high rates of product returns from unsatisfied customers. The average in the industry in around 2005 was 35% to 40%, compared to a much lower 8% to 11% for clothing bought in stores. Zara therefore preferred trading in the traditional way, with little exposure to the internet.Inditex to venture online in order to stay competitive and hope to overtake its major rivals, being H and M and Gap. Zara's Performance. Current market situation The clothing sector is at present the second largest in the UK retail sector. The competition has tightened with supermarkets like Tesco launching their own value home brands. The market has recently been flooded with value fashion as Supermarkets for example launch their own brands. Bruce and
  • 12. Daly (2006:330) view the entrance of supermarkets into the clothing market has ... Get more on HelpWriting.net ...
  • 13. Zara Strategy ––––––––––––––––––––––––––––––––––––––––––––––––– Masters in Financial Management ––––––––––––––––––––––––––––––––––––––––––––––––– 2011 – 2012 ––––––––––––––––––––––––––––––––––––––––––––––––– ––––––––––––––––––––––––––––––––––––––––––––––––– Zara: responsive, high speed, affordable fashion ––––––––––––––––––––––––––––––––––––––––––––––––– Strategic Management Prof Dr Peter Verhezen Quynh Lan Nguyen Engaging in irregularities is severely sanctioned in correspondence with article 34 of the Examination rules. We hereby declare that we have not engaged in any such irregularities. Student(s)'s signature(s) Table of contents Introduction2 Challenges2 Industry competition3 Positioning and competitive ... Show more content on Helpwriting.net ... It delivered clothes from European distribution center by air to distribute in the U.S market.
  • 14. Figure 1: Zara SWOT analysis Industry competition To better understand how Zara developed its business strategy, we should look into the fashion industry competition via Porter's five forces model. Rivalry among existing competitors: The apparel industry is highly competitive with a great number of both local and global competitors. As the market is mature, its growth is small. Accelerated growth and expansion to new markets are not easy goals to achieve. The barrier to get out of the industry is quite low for distributors, but high for producers. Most fashion manufacturers moved their production base to low–cost countries like China as wage and raw materials in developed markets like Western Europe are high. Besides, there is no great discrepancy in terms of quality of products, so customers make their purchase choices based on price and brand recognition. Threat of new entrants: The threat of new competitors is medium. The local market (Spain) is not saturated. There is no barrier for distribution entrance, as it needs low initial cost to start up a shop; however, the entry barrier for production is high. Substitutes: There are no substitutes, as clothes are basic commodity. Customer's bargaining power: The bargaining power of customers is medium. There a huge number of customers, not well organized to defend their interests. Additionally, the ... Get more on HelpWriting.net ...
  • 15. Zara 's Supply Chain Management Zara's Supply Chain Management (SCM) System Ratchanobon Kamdecha Virginia International University CMP 570 Enterprise Information Systems Professor Moses Niwe October 22, 2014 Table of Contents: Abstract 3 –Introduction4 –History4 –Production 4 –Design4 –Store5 –Distribution and Procurement5 The supply chain of Zara6 –Rules of fashion supply chain management system7 –The value chain of Zara8 –Zara information system strategy8 Conclusion and Recommendation9 References10 Abstract
  • 16. This paper presents the unique supply chain management (SCM) system of Spanish garments retailer Zara, the leading and the ... Show more content on Helpwriting.net ... Introduction Zara is one of the world largest international fashion distributors, which is extremely competitive business with the most innovative speed–to–market business model. They are the third largest brand in the garment industry. Zara has become the most innovative retailers in the world. They invented the concept of fast fashion industry. Zara has changed conditions in the marketplace demand a much more quick response from the organizations and supply chain to customers. Supply Chain Management (SCM) management is the success factor in fast fashion business. SCM deals with suppliers, with supplier's suppliers, with customers and even customer's customers (Galin, Zhelyazkov, 2011). Zara's process focuses from raw materials basis to customer consumption. The supply chain productivities are a physical product, a combination of time, place, form and function of a product and service proposition. In the fashion world, where companies are competing on time the need of new abilities are rising. History Zara is the most successful retailer brands of Spanish company of the Inditex group. In May 24, 1975, Zara opened the first store in the coastal town of A Coruna in downtown La Coruna, Galicia, Spain, and opened first retail store by Amancio Ortega and RosalГa Mera. Zara is a Spanish clothing and accessories retailer in ... Get more on HelpWriting.net ...
  • 17. Zar A Marketing Strategy Introduction Zara was founded in 1975 in Spain. Inditex which is the parent of Zara Company was founded ten years later by Co finder of this company, Amancio Ortega . Inditex has 7 other brands like Pull &Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and UterqГјe. These companies have the same sales management approach with a focus on customers. In 1975, Zara opened its first store in A CoruГ±a in northwest of Spain. Today, Zara operates over 2000 stores in more than 88 countries around the world (Lu, 2014). The scale of production for Zara is close to 450 million items in a single year. According to Vincen, Kantor, and Geller (2013) Zara has enough knowledge in producing and offering fashion design products with reasonable prices. In addition, Zara is famous in quick delivery of new collection merchandise to their stores. According to Forbes, other retailers take six months to deliver new items to stores; however, Zara has ability to produce and deliver new products within two weeks. In fact, Zara had more advantage than any other brands in this fields. This competitive advantage for Zara is based on controlling business procedures in supply chain. This company is very different from most retailers who outsource their manufacturing to third party firms in other countries. Zara owns and closely controls their supply chain process which helps them to have more market demand (Lu, 2014). Zara Value Chain A value chain can be described by all activities that help a ... Get more on HelpWriting.net ...
  • 18. Case Analysis Of Inditex Inditex group is a Retail fashion group with the famous brands as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara home, and Uterque . This group has presence in 92 markets. They recently launched Zara into the Vietnam market in September'2016 in Ho Chi Minh City. The Chairman and CEO of Zara is Pablo Isla. Inditex is a fashion group, started in Spain1975. It is a textile design, manufacturing and distribution firm. This firm operates with full integration of bricks and mortar stores and online sales. It operates in 39 markets with their online sales, and it has a total of 7096 stores worldwide. Zara is major sponsor in many international events, which includes Pantin Classic Pro World Surfing Championship and Moto GP Championship.... Show more content on Helpwriting.net ... It has 1,725 direct suppliers, 6,298 factories involved in production. The 66% of the factories activity is manufacturing, and other units like cutting 5%, Fabric 10%, Finishing 9%, Printing 3%, Dyeing and Washing 7%. Inditex has a good corporate governance in place, where Mr. Pablo chairs the board committee. Mr. Amancio Ortega Gaona, brings his 44 years of textile industry knowledge on manufacturing operations. Mr. Jose Arnau Sierra, deputy Chairman of the board, brings his experience as State Tax Inspector on to the table. The other board members include Ms Flora Perez Marcote (Pontegadea Invesiones S.L., 50.1% share capital holder), Ms. Irene Miller (corporate finance expert), Mr. Rodrigo Gordillo (legal expert), Mr. Carlos Espinosa (state economist), and Mr. Emilio Torres (Investment Banking expert). Operations Excellence of Inditex Group The Inditex group is able to attain its operation excellence through: Vertical Integration of the supply Chain Just in time production Better Inventory Management
  • 19. Well coordinated Logistics System Fastest Concept to Store Model Fast Design Best in Class Information Technology System Vertical Integration of the Supply ... Get more on HelpWriting.net ...
  • 20. JIT Case Study Introduction There are full of challenge in global manufacturing, especially automotive industry after the second world war, it forces the firms to study additional methods to improve their competitive. Just–in–time (JIT) is a concept of the management systems in supply chain created by Toyota Motor Company, it enabled many firms (e.g. Ford, Hewlett–Packard and Nissan) to meet the demands of global competition. It can be expensive to fully implemented JIT, however, many firms foresee and believe it will produce notable profit for the coming years. The purpose of this paper is to analyse the performance of JIT in supply chain by the case study of Zara. 2. Literature Review and research framework 2.1 What is JIT The simply principle of JIT ... Show more content on Helpwriting.net ... Under JIT practices, Zara control the shipping only 24 hours in the mainland and 48 hours to Asia and US, allow the transport method and time more flexible because the production and transportation batches are small under JIT production that effective to lower the shipping cost while using commercial airlines rather than sea transportation. 3.3 Benefits of JIT practice on upstream of Zara Zara provide regular training programme of suppliers and manufactures to improve the material quality from suppliers and maintain both strategic capability in the market, it establishes and maintain a long term and stable relationships of trust with suppliers. In JIT, Zara order the actual need quantity in production to lower inventory, in terms of the supplier, they can forecast the actual demand quantity as to avoid the cost or inventory or production waste cause by bullwhip ... Get more on HelpWriting.net ...
  • 21. Zara Is The Most Successful Retailer Brands Of Spanish... Introduction Zara is one of the world largest international fashion distributors, which is extremely competitive business with the most innovative speed–to–market business model. They are the third largest brand in the garment industry. Zara has become the most innovative retailers in the world. They invented the concept of fast fashion industry. Zara has changed conditions in the marketplace demand a much more agile response from the organizations and supply chain. Supply Chain Management (SCM) management is the success factor in fast fashion business. SCM deals with suppliers, with supplier's suppliers, with customers and even customer's customers. Zara's process focuses from raw materials origin to customer consumption. The output of ... Show more content on Helpwriting.net ... More than half of the fabrics are purchased under to make faster response to mid season color changes possible. Zara has four product lines: for women, men, children and home appliances which has creative team consisting of designers, sourcing specialists, and product development personnel. In each of products are subdivided in lower garment, upper garment, shoes, cosmetics and complements, as well as Zara kids Zara's headquarters has a commercial team that consists of designers, market specialists and buyers. Design Zara 's designers and customers are inextricably linked. Specialist teams receive constant feedback on the decisions its customers are making at every. Zara develops just two weeks for a new product and approach their products to stores in each year, launch around 10,000 new designs. Zara has 3,000 in–house designers for men, women and children's wear are located in different halls in a building attached to the Inditex headquarters. Each head office is equipped with its own unique design facilities and logistics centers from which merchandise is shipped to the stores worldwide twice a week weekly. Zara produces clothing as per the latest trends in a limited quantity. Zara produces more than 12,000 new designs to the market every year in the stores globally twice a week. The creative teams worked on products for the current season by creating constant variation, expanding on successful product items and continuing ... Get more on HelpWriting.net ...
  • 22. Swot Analysis Of Gap Another company who use disruptive business model is Walmart. In large retailer industry, Walmart has unique business model then any of their competitors. They offered everyday low price which is too much for his competitors. They also Gap is an apparel retail company which was founded in 1969 by Donald Fisher and Doris F. Fisher and their headquartered is located in San Francisco, California. They are one of the closest competitor in international level. They offer most of their product all over the country, they have 3,700 stores worldwide. Gap product are personal care products for men, women and child who are under five. They were able to grow their brand through expansion, geographic and brand wise. Gap also have different niches of clothing brands under its name which are Old Navy, Banana Republic, Piperlime, Athleta and Intermix. Gap Inc. All of their product are available in company website and their owned store. The process to launch any kind of new lines of clothing involves an 9–month period of centralized planning, production and marketing which is responsible for member of elite fashion designer and corporate executives. Gap manufactured all most all of their product in third country which save them lots of money in labor cost because labor cost in those kind of country is relatively cheap. They have also continuing expanding their business internationally by opening more stores. Gap does aggressive advertising about their product to their potential customer ... Get more on HelpWriting.net ...
  • 23. How Zara Information System Work Question 1: From an analytical prospective, explain how information systems relate to the way Zara runs its business. What types of systems are the most essential for this company in its current environment? 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. ... Show more content on Helpwriting.net ... However, its distrubution system is advanced and that there is a few human participation required for the process. For an example, Zara uses optical reading devices to achieve the task, which leads to a tremendous cost savings in the form of labor. An information system is a base in today's business world. Everything is electronic. In various businesses, the survival and ability to succeed strategic business goals is challenging without extensive use of information system. Businesses improve the efficiency of their operations in order to accomplish higher profitablity. Besides that, information systems are important tools available to managers for achieving higher levels of efficiency and productiviy in business operations. For an example, Zara uses the PDA technology to gather customer feedback and input. In today's world of business, everything is computerized and most of the companies use the Internet and information business to help keep their quality, save time and also cost. It also can reach out to more customers worldwide. For an example, with a website in the internet, it would relay the message to millions of viewers worldwide regarding the product and service that the particular company can provide and indirectly saves cost in advertising in television and print advertisments. An information system is any combination of information technology or support people's activities that support ... Get more on HelpWriting.net ...
  • 24. The Inditex Group, By Amancio Ortega Company ** In 1963 a Spanish multinational clothing company known as The Inditex Group, was founded by Amancio Ortega in Galicia Spain. It is made up of 100 companies specializing in textile design, production and distribution. This company started out by introducing a new way of fashion, instead of offering clothing that was long–lasting at an expensive price, they offered clothing in massive varieties at affordable prices. Now Inditex owns worldly famous brands such as, Zara, Massimo Dutti, Bershka, Oysho, Pull and Bear, and Stradivarius, Tempe, Zara Home, and Uterque. These brands have gone on to become corporate owned franchises and have locations all over the world. In 1985 the company had opened 80 Zara stores in Spain alone, and ... Show more content on Helpwriting.net ... Industry Analysis Industry Growth Growth for Inditex is their expansion on the web, and internationally. Since 2011 Inditex considered online sales to be a new service for customers. They are highly focused on the ongoing improvement of the commercial transaction in this particularly new channel, so customers can enjoy the same products and quality of service on line as others do in stores. Zara for one started online sales in china in September of last year and Massimo Dutti and Zara home did the same in the U.S in October of last year. The goal was to extend e–business to the markets where the company operates with actual stores. According to Bloomberg business website, the world 's largest clothing retailer, reported accelerating revenue growth after an expansion of online sales and store openings help drive a five percent profit increase last year (Jarvis, Mulier, 2015). With the decision to enter new markets and extend the reach of online sales, the company is staying ahead of most of competitors. After boosting the number of stores by five percent to 6,683 through January, Inditex plans to open as many as 480 outlets this year, including three in New York. Net sales for Inditex reached 15.9 billion ... Get more on HelpWriting.net ...
  • 25. Essay On Inditex Inditex group is well–known for its clothing brands, which are of high quality and yet, affordable. Its founder Amancio Ortega, is the 4th richest man in the world. In 1963, inditex had been established as a dress–making factory, and then started off a small store in Spain by the name of Zorba in La Coruna, which later changed to Zara. Now it is the world's favorite fashion brand. Zara is the amalgamation of all these qualities as a Spanish clothing brand and hence become the go–to fashion brand for all. Zara was started as a small store in Spanish, now it is the largest retailer in the world (Lopez & Fan 2009). Zara started to expand its empire to the rest of the country, then later to Portugal. In 1990s, the store has expanded in France, United States and most of the Europe. Currently, there are 6500 stores of Zara across 88 countries throughout the world. Inditex has over 7000 stores across the world. In 1975, it launched the first Zara store and at the ... Show more content on Helpwriting.net ... Inditex, Zara's parent company, has set Asia as a top priority for its expansion with stores in countries all over the region. With its growth in Asia, Zara seems to be well positioned as compared to its competitors. It is suspects that there will be an increase of store expansion in the United States including Zara Home, Zara Kids and one of the other labels such as Bershka. Massimo Dutti with its better fashion look will soon have more stores in some of better shopping areas. There are many attractive growth opportunities in Latin and South America which were close–to–home for ZARA for cultural and strategic perspective and hence within its risk appetite (Crofton & Dopico, 2012). 2) Why would a retailer introduce its online store country–by–country? Why was Inditex slow to embrace online sales when it's so tech–savvy in other ... Get more on HelpWriting.net ...
  • 26. Zara Supply Chain Essay Introduction Zara and Benetton are two of the most notable fashion stores in the world. Remarkable for its products and notable for its exceptional supply chain management. This report will discusses the supply chain management for Zara and also Benetton which will tackle the areas of supply chain and their contribution to how the company provides its products to its customers. Business Background Zara is a Spanish clothing and accessories retailer that was founded by Rosalia Mera and Amancio Ortega in 1975. It is the leading retail store of the Inditex group, which is a fashion group who owns multiple brands such as, Massimo Dutti, Uterque, Stradivarius, and Bershka and also pull and Bear. Amancio Ortega unbolted the first ... Show more content on Helpwriting.net ... Supply Chain Models Zara and Benetton's supply chain both share some common components within their supply chain models, but a few distinguishing factors make them their own. All supply chain models must include planning, designing, maintenance and control of all materials and information in order to efficiently satisfy its customers' needs and wants (Schroder, 2000). Zara being known for their 'fast fashion' is claimed to take only two weeks to develop a new product and have shipped to stores, and ready for shelves. Zara is a vertically integrated retailed, meaning that their supply chain is owned by their company and usually each member of the supply chain produces a different product or service. Unlike other apparel retailers, Zara controls most of the steps included in their supply–chain, including designing, manufacturing and distribution of the products. Zara uses a just–in–time (JIT) system, with this model it allows the company to have self–containment throughout the stages of materials, manufacturing, product completion and distribution. On the other hand, most of the manufacturing of Benetton is done by the company itself. But the supply side is heavily consisted of 'contractor's – which are companies owned, or part owned by Benetton employees. Employees that provide services to the factories, ... Get more on HelpWriting.net ...
  • 27. Zara Brand Managament Kazakhstan Institute of Management, Economics and Strategic Research [pic] BRAND MANAGEMENT MK 3214 Individual Assignment Theme: "Zara" brand Instructor: Elmira Bogoviyeva Written by: Tulegenova Aigerim– 20071441 [pic] Abstract The focus of this paper is to analyze the one of the most popular brand name called Zara. And while reading this report there can arise a question about what is so special about Zara? The challenge is that it is a brand. It is worth pointing out that this is a well known brand in the retail and fashion industry of Kazakhstan. Its name is well known all over the world, but it is very young brand in our country. Therefore, I took this brand in order to show how young and popular brand that recently ... Show more content on Helpwriting.net ... However, it is also needed to point out that the company prefers to establish its own branches to take better control, but in certain markets, politically or culturally complicated or that present certain risks, establish deductibles or agreements with local partners (franchising). Today, brand nearly owns 90% of Zara chain stores all over the world. Brand Uniqueness Not many people know this, but Zara is a very unique fashion company compared to other mega fashion brands. Instead of focusing on inventing the next clothing item people want to buy , Zara built an advanced technology that can bias or push their entire clothing line production in blazing speed to meet what real customers are actually buying across the stores. This "fast fashion" system depends on a constant exchange of information throughout every part of Zara's supply chain. The fashion retailer has become one of the most successful fashion companies in the world – based on their unique way of manufacturing and distributing their clothes. As opposed to most fashion companies, Zara never manufactures lines of clothing and hope that the market will like it. Instead, they have highly efficient method for tracking what the market wants to buy, getting it into their factory, biasing their line of production accordingly, and distributing back to the stores. This behavior/technology differentiates them, as they are able to meet their marketers' needs rather than promoting
  • 28. ... Get more on HelpWriting.net ...
  • 29. Fashion Industry China: Csr Case Fashion Industry China: CSR Case Subject Submission Date Class Team Members CSR cross–analyses on fashion Industry Tuesday 15, 2012 MBA Pudong– Corporate Social Responsibility Christiane Pagsisihan Damien Dandelot Jose Antonio Mallen Tendai Chitapi Vera Boisa Harbhajan Khalsa Executive Summary The research paper trough four main Corporate Social Responsibilities (CSR) issues (Children Labor, Working condition, Environmental impact and Environmental Sustainability) indicates several glaring trends within the fashion industry. First of all, there appears to be an overall evolution in the CSR practice and actives during the last decade in the fashion industry. Moreover, it seems evident that CSR is more and more considered as important ... Show more content on Helpwriting.net ... These table has been made according some information coming from diverse councils and web site, but with a primarily focus on the Nordic Fashion Association, Code of Conduct and Manual (2012). Table 2 – List and describe the CSR –related issues relevant to the industry CSR issues relevant to the fashion industry Description of the issue Human Rights Exploiting people for profit. This concern is widespread throughout the fashion industry worldwide. Freedom of association and the effective Ensure that workers participating in unions are not subject to discrimination recognition of the right to collective bargaining or punitive disciplinary actions. Forced Labor Trafficking and exploiting human beings for the purpose of monetary gain. Issues Child Labor Discrimination Working Conditions Wages, payroll records and deductions Labor contracts Environment Corruption and Bribery Ethical Animal Ethics Models Employing children under the legal age to work in factories, sweatshops or even in their own homes. Unfair treatment in favor or against a person based on their religious affiliation, skin color, nationality, gender, race, economic class etc. Forced labor. Extended work hours with little or no compensation. Occupational health and safety. Withholding pay and legal documentation. Refusing to negotiate with unions. Abuse of power and authority. Toxic waste. Heavy chemicals and dyes. Abuse of power by officials, corporate or otherwise, for ... Get more on HelpWriting.net ...
  • 30. Case Study Of Zara Marketing Strategy Contents Page Introduction2 Background2 Discussion3 Products and Services3 SWOT Analysis3 Competitive Analysis4 Competitive Advantages5 Sustainability5 Recommendations5 New Product/Service5 Marketing Strategy6 Conclusion7
  • 31. References8 Introduction This report is mainly focusing on studies of marketing strategy. By analyzing and discussing the case of Zara, we will be able to have a more in depth analysis of companies and their marketing strategies. In the background section, basic knowledge of marketing strategy will be introduced. In the discussion section, an analysis of Zara's existing product and service will be listed and an S.W.O.T. analysis is done to figure out the company's current situation and position in the marketplace. ... Show more content on Helpwriting.net ... Also a marketing strategy will be suggested to improve Zara's business. Background Firstly, some commonly used terms and their definitions will be introduced in this report in order to provide some basic knowledge and understandings of the principles and studies about marketing strategy planning. SWOT Analysis: This is a strategic planning method which used to evaluate the strength, weakness, opportunities and threats of an organization involved in a certain business. (Friend, Graham. 2009) Competitive Analysis: This is an analysis of the organization's strength and weakness against its ... Get more on HelpWriting.net ...
  • 32. Zara vs. Hm VS. H&M vs. Zara Comparing Marketing Strategies By: Heather Lynn, Shannon Bennett, Harriet Joines Table of Contents Introduction Zara History Performance Financials Recent Expansions Threats and Opportunities Current Marketing Strategy H&M History Performance Financials Recent Expansions Threats and Opportunities Current Marketing Strategy Our Marketing Plan Marketing Objectives SWOT Analysis Marketing Mix Competitors Summary Works Cited 3 4 4 5 5 6 6 7 7 7 10 10 11 12 12 13 13 15 15 17 17 18 2 Introduction For this term paper, our group will be comparing two companies, H&M and Zara, and their marketing strategies and taking the information we compile and developing a new marketing plan for one company. We will be analyzing... Show more content on Helpwriting.net ... Amanico 4 Ortega Gaona, CEO, founder, and Spain's richest man founded Zara in 1975. Zara's first store was in A Caruna where the headquarters now lay and featured lower priced lookalikes of high end, popular products selling to women, men, and children (Zara (Clothing) 2009). Beginning in the nineteen eighties Zara began experimenting with differentiating the design, manufacturing and distributing progression in order to condense lead times and respond faster to new trends. Gaona considered this to be "instant fashion." Instead of individuals, Zara used information technologies and groups of designers to base its improvements in fashion. In 1998, the company began its international development through Portugal's second city, Porto. By 1989 Zara entered the United States and by 1990 entered France. Zara's international development expanded to Mexico in 1992, Greece in 1993, and Belgium and Sweden in 1994. Zara continued to open stores around the world until there were stores in seventy countries. This includes more than 519 stores in Spain, 116 stores in France, 87 stores in Italy, and 45 stores in the USA (Zara: Cool Clothes Now, Not Later). Zara Performance: Financials: Since Zara is a subsidiary of the parent company Inditex, this report includes some financials about Inditex. According to the
  • 33. ... Get more on HelpWriting.net ...
  • 34. The Vision And Mission Statement Of Zara Following is our vision statement: "To attain market leadership through unmatched quality, a diverse and unique product mix, empowered employees, world–class systems, and the highest ethical and professional standards." Source: http://www.zaratextiles.com/vision.php Mission Statement! "ZARA Textile is devoted to achieve consistent improvement in the system of providing products & services to the customers through On Time Delivery & Enhancing Customers Satisfaction by means of Quality and Value." Source: http://www.zara.com/us/en/company/ our–mission–statement–c18001.html?#utm_referrer=http%3A%2F%2Fwww.zara.com%2F%3Fgo%3Dhttp%253A%2F%2Fwww.zara.com%2Fshare%2F Zara ' is the flagship chain store of ... Show more content on Helpwriting.net ... The creation of these two distributions centers it will be a test for Zara, it will be like a duplication of its business model and also a big signal of alarm towards the competitors but it also be a failure if it isn't well managed. I would like also to consolidate the transnational strategy by adding two more elements: a management team that will be in charge with the coordination of all activities regarding the development of the two distributions centers and a council will be added also in order to supervise and improve the communication between the product divisions and the distributions centers (Exhibit 1). The information from the local centers will be sent to the Spain headquarters, in this way; the "design–on–demand" model will be more adapted to the various country specificities. An optimal solution can be the combination between cost leadership and local responsiveness. 6. Conclusion Zara is one of the biggest retailers in the fashion industry. Its business model is unique: Zara gathers the information from the customers and then respond in a fast manner to their demands. As long as Zara is keeping its philosophy and make some modifications regarding its strategy in order to face the futures challenges it will be impossible to assist to the disappearance of this retailer in the near ... Get more on HelpWriting.net ...
  • 35. Case Study On Zara ASSIGNMENT SUBMISSION FORM Student NameD.N.E.Seneviratne Student Number13208064 Assessment TitleInternational Marketing– 'Zara: the Spanish retailer goes to the top of world fashion' Case Study CourseBachelor of Science(BSc) in MIS Module code(MKT3001L) LecturerDr. Markus Vanharanta Tutor (if applicable)– Date Submitted04/08/2014 OFFICE USE ONLY Date Received OFFICE USE ONLY GRADE/MARK A SIGNED COPY OF THIS FORM MUST ACCOMPANY ALL SUBMISSIONS FOR ASSESSMENT. STUDENTS SHOULD KEEP A COPY OF ALL WORK SUBMITTED. PROCEDURES FOR SUBMISSION AND LATE SUBMISSION ENSURE THAT YOU HAVE CHECKED THE SCHOOL'S PROCEDURES FOR THE SUBMISSION OF ASSESSMENTS. NOTE: THERE ARE PENALTIES FOR THE LATE SUBMISSION OF ASSESSMENTS. FOR FURTHER INFORMATION ... Show more content on Helpwriting.net ... This is a situation may captures the company's current market rather than snatching to a new market segment and increases the market share. –Difficulty in managing When multi brands are owned by a parent company or group (Zara Inditex) it would be hard to manage products under many brands. –Expectations on new products Customers expect the same or even greater standard of quality from new products as they may have experience the quality of the existing products.
  • 36. –Lack of brand focus and clarity When maintaining several brands simultaneously it may reduce focus on certain brands. –Risk of brand equity dilution Sometimes it may reduce the effectiveness of the brand name since consumers sees the brand name everywhere and may not consider it in the same faith they once did. –Negative feedback effects Negative feedback effect of new products may damage the goodwill of other ... Get more on HelpWriting.net ...
  • 37. Traditional Marketing Is No Longer Working We can see every day thousands of adverts, through various media channels. But we are already tired of this overexposure and this traditional marketing is losing its effect. What's new? The marketing world is changing from traditional advertisements towards finding new methods of reaching consumers in a non–aggressive way. It's really important that the evolution of technology has created new opportunities for marketers, and blogs are one of the key points of this new age. Thanks to the introduction of Web 2.0, the blogging phenomenon has become an importantmarketing channel, as it has enabled a new way of communicating and sharing information. But ... what's new in blogs? The reason because blogging has quickly became such a popular tool for internet communication is just because the users can generate the content. Users can create the content. It's no more one side information, but two sides! There is a conversation between two parts. Fashion blogs as a communication channel have become a really important topic in the Spanish media in recent years. Fashion blogs can help fashion companies to reach out new customers using this new, easy, and inexpensive tool. But they can be used not only as an "attracting tool" but also as an engagement and customer fidelity tool. We know that in today's world of clothing retail, internet and social media are playing an important role in helping consumers find the items and the information they are looking for. This is the reason why it's ... Get more on HelpWriting.net ...
  • 38. Global Chic : The Globalization Of Fashion Ana Pascual–Leone Capstone Draft November 5, 2014 Global Chic: The Globalization of Fashion Abstract: This paper aims to investigate the effects of globalization, examined through the framework of hybridity/glocalization, on the fashion industry by examining the shift in the nature of ethnic, cultural and national references in high–end designer collections, and the growth of fast–fashion houses' global success. High–end designers have been using cultural references as their inspiration for decades. However, the increasingly globalized world has changed the nature of cultural references. There has been a shift away from collections being inspired by one country or culture, towards a multicultural influence. Driven by the idea that ... Show more content on Helpwriting.net ... Philosophy, religion, language, the arts, and other aspects of culture spread and mixed as nations exchanged products and ideas. In the 15th and 16th centuries, Europeans made valuable discoveries in their exploration of oceans, including the start of transatlantic travel to the "New World". Global movement of people, goods, and ideas expanded radically in the following centuries. Early in the 19th century, the development of new forms of transportation, such as the steamship and railroads, and telecommunications that compressed time and space allowed for increasingly rapid rates of global interchange. In the 20th century, automobiles, intermodal transport, and airlines made transportation even more rapid. The advent of electronic communications, most notably mobile phones and the Internet, connected billions of people in innovative ways over the past two decades. Globalization is a phenomenon that has been on the forefront of the international arena for decades. With innovative technological advancements, national lines that previously identified and differentiated countries are constantly being blurred. Cultural globalization has increased cross–cultural contacts however it is also accompanied by a decrease in the uniqueness of once–isolated communities. For example, Sushi is available in Germany and Italy as well as Japan, and Starbucks has become a recognizable household brand on all continents. This phenomenon is not only applicable to food but to all aspects of ... Get more on HelpWriting.net ...
  • 39. Creativity Model Of Zara In the following the example of Zara is compared to the creativity approach of H&M. Zara is the major brand of the Inditex Group that is one of the world's largest fashion retailers. The group is composed out of eight brands: Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque; comprising 6700 stores all over the world. Zara is a Spanish company and has more than 2000 stores located in 88 countries. The subsequent table compares and gives an overview on each brands creativity approach: H&MZara Doesn't own factories = DelocalizationOwn factories = Local industrial model that makes possible the supervision of the entire production line of the brand (flexibility, variety, quantity) The lead times vary between a few weeks to six monthsFrom the idea to the shops в†’ maximum 4 weeks Zara is fabric driven. Designs of the collection are developed with the fabrics that are available. This permits them to win time.... Show more content on Helpwriting.net ... The in–house designers have to envisage the products of the three upcoming seasons and attend a conference every week in order to share their own ideas. As ideas converge and interact, new ones will spawn and this will only benefit to the brand.The collections are develop by creative teams (composed of designers, sourcing specialists and product development) rather than only designers. The teams work on different products, build on styles that were previously successful. Designers are trained in order that they limit the number of reviews and changes. This has for consequence to speed the development process. But they are also train in order that they are able to make quick ... Get more on HelpWriting.net ...
  • 40. Inditex Case Study " INDITEX GROUP – ARE ITS "FAST FASHION" RESULTS SPEEDING UP AGAIN AFTER RECENT SLOW DOWNS ? " This case study has been written exclusively for use on the course Strategic Financial Management FINA 1035 at Greenwich University Business School and its partner institutions. It is to be used exclusively for this purpose. No part may be copied , emailed or reproduced for any other purpose other than stated above. Much of the data and material included in the case study is taken from the annual reports and accounts of the Inditex Group, its public statements and from its website .inditex.com. All other sources are shown in the case study. Author : Scott Duncan Lecturer Greenwich University Business School July 2010 INDITEX GROUP – ARE ... Show more content on Helpwriting.net ... Stores have "cutting edge" look and are meeting points for fashion, music and street art Latest trends in young women's clothes and accessories Women's underwear, lingerie and nightwear Items for home eg home textiles, bedclothes, bathroom and table linen, glassware, cutlery and children's bedding Fashion accessories eg handbags , footwear, leather goods and costume jewellery Bershka Stradivarius Oysho Zara Home Uterque The firm's stores answer to popular trends by telling designers in Spain what customers are asking for locally. Inditex responds in about two weeks with new designs. Amancio Ortega Gaona, Spain's wealthiest businessman, founded Zara in 1975 and later created Inditex as a holding company. He got his start in the clothing business at the age of 13, when he went to work for a local shirtmaker in A Coruna , Spain, delivering the shop's goods, which included lingerie and dressing gowns. Ortega worked his way up to become an assistant manager, then shop manager, by the early 1960s. These positions gave Ortega experience not only in dealing directly with customers but also in purchasing fabrics and other materials for the shop's line of apparel. Working out of his sister's home, Ortega began developing his own designs. One day in the early 1960s, he hit upon the formula that was to become
  • 41. central to the operations of Inditex: that of reproducing popular fashions using less expensive materials in order to sell highdemand clothing items at lower ... Get more on HelpWriting.net ...
  • 42. Strengths, Weaknesses, Opportunities, And T SWOT Analysis– Strengths, Weaknesses, Opportunities, and Threats SWOT Analysis SWOT analysis is extremely advantageous tool meant for understanding and additionally decision–making for a couple of situations inside corporate in addition to companies. SWOT is a short pertaining for Strengths, Weaknesses, Opportunities, and Threats. The SWOT try headings supply a fantastic structural thing for considering strategy, position with the direction of a company and even business concept. The internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities... Show more content on Helpwriting.net ... The SWOT matrix: A firm should not necessarily lead the more profitable opportunities. Rather it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and approaching opportunities. In certain cases, the firm can be overcome a weakness in order to fix itself to purse a compelling opportunity. To develop strategies that take into accounts the SWOT profile, a matrix of these factors can construct. The SWOT matrix is shown below: StrengthsWeaknesses OpportunitiesS–O strategiesW–O strategies ThreatsS–T strategiesW–T strategies S–O strategies compress opportunities that are a good fit to the company's strengths. W–O strategies overcome weaknesses to purse ... Get more on HelpWriting.net ...
  • 43. Zara: the Technology Giant of the Fashion World ZARA: THE TECHNOLOGY GIANT OF THE FASHION WORLD 2010 BACKGROUND Zara brand is the flagship chain store of Inditex Group; the Inditex Group is integrated by: ZARA, OYSHO, UTERQГњE, BERSHKA, STRADIVARIUS, MASSIMO DUTTI, and PULL AND BEAR. The owner of Inditex Group is the tycoon Amancio Ortega, the group headquarter is located on CoruГ±a, Galicia, Spain, this was the place where the first Zara store opened in 1975. Zara has resisted the industry–wide trend towards transferring fast fashion production to low–cost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. Its first store featured low–priced lookalike products... Show more content on Helpwriting.net ... Mango: Mango is a competitor of Zara is a clothing brand from Barcelona, It has more than 1,000 stores in 92 countries located on five continents 130 points of sale having been added in 2006, The firm has over 7,800 employees, 1,850 of whom work in the Hangar Design Center and headquarters is in Barcelona. Wal–Mart Stores, Inc. branded as Walmart, is an American public corporation that runs a chain of large, discount department stores. The company was founded by Sam Walton in 1962, Walmart operates in Mexico as Walmex, in the United Kingdom as Asda ("Asda Wal –Mart" in some branches), in Japan as Seiyu, and in India as Best Price. The CEO is Mike Duke. MAIN PROBLEM The main problem of this case is that maybe Zara moves too much fast than the customers might want or desire, also is a problem because the clients sometimes need time to think or have to Money to buy the clothes, when Zara tries to be on the way or with the moda what they are really doing is changing to fast, also if they take the data from the customers in order to convert it into new designs they are supply the need of innovation for the customer but not the fashion trend. When Zara changes that fast they have two options, the first one is change fast items of a trend that really don't work or in the odder hand change a trend or items that are really "on fire" that are being ... Get more on HelpWriting.net ...
  • 44. Inditex And Its Impact On The World The names Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and UterqГјe may sound unfamiliar to some but they are the brain child of Amancio Ortiga, founder of Inditex. Amancio Ortega is a native of Spain and is now considered the 4th riches person in the world according to Forbes Magazine (At a Glance, 2014). Starting as a small company that produced women's night clothes for garment wholesalers, Inditex grew after a large canceled order (Sardar, 2012). The first store Zara was created for canceled items but eventually turned into the company's flag ship store. Currently Pablo Isla Alvarez de Tejera is now the Chairman and CEO of Inditex after the retirement of Ortega. He started as chairman in 2011 but started ... Show more content on Helpwriting.net ... This was trailed by the brand 's universal extension toward the end of the 1980s and the progressive dispatch of new retail ideas: Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and UterqГјe. This client center reinforces an operational structure that includes all phases of the style worth chain (outline, assembling, appropriation and deal in restrictive stores) (Sustainable Business Model, 2014). The client guarantee is additionally the main impetus behind the incorporation of our economic and ecological approaches utilized all through the Group 's production network. Inditex's biggest competitors are Gap, H&M, and Benetton internationally (Sardar, 2012). Headquartered in Arteixo, Spain, Inditex has emerged as a leader in the fashion world. Inditex's supply chain is exclusive in that half of construction happens in close vicinity to the Group 's ' head business locales and logistics stages in Spain. This trademark adaptability reaches out to Inditex 's suppliers, which have become as an inseparable unit with the organization (Annual Report, 2013). Strategically having the suppliers close to Spain is integral to Inditex's success and its huge supplier base of 1,500. Inditex also utilizes other markets internationally and both local and global suppliers are bound to high environmental standards. This helped Inditex revenue grow 10% to $19.15 billion at the end of the last fiscal year (Sardar, 2012). Their commitment to ... Get more on HelpWriting.net ...
  • 45. Essay On The Five Forces Of Zara ZARA INTRODUCTION ZARA, a branded Spanish clothing and accessories retailer, was founded in 1975 by Amancio Ortega and Rosalia Mera. It is the flagship retail store of the Inditex group, a fashion group that owns many other brands such as Pull and Bear, Uterque, Bershka, Stradivarius and Massimo Dutti. Amancio Ortega opened the first Zara store in a central street in Galicia, Spain under the name Zorba. Although another store a few blocks away was also named Zorba, the molds of the letters for the sign was already created and it was rearranged, thus coming up with the name Zara. In 1980, the company started its international expansion in Portugal. In 1989, they penetrated the US market and in 1990, they entered the French market. In 2003 ... Show more content on Helpwriting.net ... The vertical integration model (with its own logistics, designers and manufactures) also brings a flexible structure for Zara to adopt fast fashion. According to Mihm, Zara spends very little on advertisement in comparison to their competitors. For example, Gap has many television advertisements and magazine ads while Zara keeps advertisement to a strict minimum, allowing for more cost–effective marketing strategies. Zara focuses on bringing reasonable quality products to their consumers and creating brand awareness through word of mouth, and maintaining a reputation for rapidly adapting to changing fashion ... Get more on HelpWriting.net ...