1. PRESENTATION
ON
ZARA SUPPLY CHAIN
BY : NITIKA & SUKANYA
AMM3
2. Inditex is a large Spanish corporation and the world's largest fashion group.
It is a global specialty retailer that designed, manufactured, and sold apparel,
footwear, and accessories for women, men, and children through Zara and five
other chains around the world.
Subsidiaries :- Zara, Pull and Bear, Bershka, Massimo Dutti, Stradivarius,
Oysho, Zara Home, Uterqüe, Temple.
Profit :- €1.932 billion (2012).
3. Inditex should focus its energy on its current chains, specifically Zara since this chain in
particular is responsible for much of Inditex’s success.
Decentralized production and setting up facilities besides major cluster of countries
(especially in Eastern & Western Europe, North America and Asia) to decrease the complexity
of the system while catering for the fashion need of each cluster and to alleviate the high
transportation costs. Because of Asia’s low wages and already efficient production, North
America, specifically the United States, is Inditex’s most promising market to have Zara
enter.
Enabling shopping via the Zara website would be best for Zara to sample the market’s tastes
and trends.
Zara should breakthrough into North American markets, a new distribution center in
Mexico would be most beneficial. The success of each individual Zara store is largely
attributed to each store’s manager because Differences between regions were even greater
than within regions
. *To find prime candidates for these managerial positions, Zara may be interested in creating
and investing in an internship/co-op educational program to trained potential candidates.
4. There was also significant local variation in customers’ attributes and preferences,
even within a region or a country. Just within Western Europe,
For instance, one study concluded that the British sought out stores based on
social affinity, that the French focused on variety/quality, and that Germans were
more price-sensitive.
Relatedly , the French and the Italians were considered more fashion-forward
than the Germans or the British. Spaniards were exceptional in buying apparel
only seven times a year, compared with a European average of nine times a year,
and higher-than-average levels for the Italians and French, among others )
5. Short term strategy : Inditex should promote Zara first to new market like It
should follow blue ocean strategy for there flagship brand Zara targeting : North
America .They should launch other units in Spain to maintain the cash flow.
Long term strategy : Inditex should launch Zara and additional chains and should
continue blue ocean strategy .
They should be Decentralized production and setting up facilities besides major
cluster of countries to decrease the complexity of the system while catering for
the fashion need of each cluster and to alleviate the high transportation.
According to us, Yes Zara should start and acquire additional chains on lateral
stages to compete with other competitive brands available in the market .
To capture remaining market as there was also significant local variation in
customers’ attributes and preferences, even within a region or a country .
To maintain its current position & future security .
