This document contains the names of 5 people: Christian Deing, Simon Luyken, Julika Reusse, Sebastian Stratmann, and Anna Worster. No other information is provided.
The document discusses Zara's business model and IT systems. It identifies that Zara uses a just-in-time production and delivery model to bring new fashion items to stores twice weekly. Zara's IT systems currently use outdated technologies like DOS for point-of-sale systems. The document evaluates options to modernize Zara's IT infrastructure, including fully externalizing the project or having internal staff work with external partners. It recommends modernizing systems using a UNIX solution, as this provides the lowest annual fees over 5 years while meeting Zara's needs for improved in-store and headquarters connectivity.
This document provides a case study and lecture on the Spanish retail giant Zara and its parent company Inditex. It discusses Zara's competitive advantages including its ability to develop new fashion products in just two weeks and launch 10,000 new designs per year. It also outlines Zara's objectives to maximize profits through maintaining fashionable, high-quality products at reasonable prices. The document analyzes Zara's strategies, international expansion, financial performance compared to competitors, and provides a SWOT analysis.
This case flyer, which is based on the article1 from The Economic Times, discusses Spanish fashion retailer Zara’s competitive advantage built on its deep-rooted innovative business model. Since the time it was established in 1975, Zara had a philosophy of centralized design, manufacture and distribution model. Though the company expanded globally, it never changed its centralized model. Moreover, Zara’s business model could not be duplicated by its competitors. What were the merits and demerits of a centralized business and supply chain model? Why could it not be duplicated? How does Zara achieve a competitive advantage out of this model and sustain it? What unique value proposition does Zara offer to its customers using a centralized model? This case flyer is suitable to teach concepts in the courses of Business Strategy, Business Model/Operating Model and Supply Chain Management. The case flyer also discusses Zara’s expansion in China and debates whether Zara should localize or stay centralized.
URL: http://www.etcases.com/zara-s-competitive-advantage.html
Zara is a Spanish clothing retailer known for its rapid production of new designs to match emerging fashion trends. It operates over 1,700 stores worldwide and launches around 10,000 new designs each year, getting products to stores in just two weeks compared to the industry average of six months. Zara's supply chain and production model allows it to be more responsive to trends and offer a wider variety of fashionable products at affordable prices. It has experienced rapid international expansion and growth over the past few decades to become one of the largest and most profitable clothing retailers globally.
This document provides information about Zara, the largest clothing company owned by the Spanish fashion group Inditex. It discusses Zara's business model, strategies, and supply chain management approach. Zara aims to continuously innovate and provide new, affordable designs made from quality materials to satisfy customer desires. Through its fast fashion model, Zara is able to design, produce, and distribute new collections to stores within weeks, allowing it to stay on top of the latest trends. Zara has over 1,900 stores globally and is a leader in the fast fashion industry due to its ability to quickly replicate designs at low prices.
This document summarizes a journal article about the internationalization of the Spanish fashion brand Zara. It provides background on Zara and its business model, which focuses on quick production turnaround and receiving frequent small shipments to stores based on customer feedback. The summary discusses Zara's international expansion, including its motivations such as market saturation at home and opportunities abroad from trade liberalization. Key aspects of Zara's internationalization process are also covered, such as its selection of major fashion markets and use of different entry strategies in different countries.
This document contains the names of 5 people: Christian Deing, Simon Luyken, Julika Reusse, Sebastian Stratmann, and Anna Worster. No other information is provided.
The document discusses Zara's business model and IT systems. It identifies that Zara uses a just-in-time production and delivery model to bring new fashion items to stores twice weekly. Zara's IT systems currently use outdated technologies like DOS for point-of-sale systems. The document evaluates options to modernize Zara's IT infrastructure, including fully externalizing the project or having internal staff work with external partners. It recommends modernizing systems using a UNIX solution, as this provides the lowest annual fees over 5 years while meeting Zara's needs for improved in-store and headquarters connectivity.
This document provides a case study and lecture on the Spanish retail giant Zara and its parent company Inditex. It discusses Zara's competitive advantages including its ability to develop new fashion products in just two weeks and launch 10,000 new designs per year. It also outlines Zara's objectives to maximize profits through maintaining fashionable, high-quality products at reasonable prices. The document analyzes Zara's strategies, international expansion, financial performance compared to competitors, and provides a SWOT analysis.
This case flyer, which is based on the article1 from The Economic Times, discusses Spanish fashion retailer Zara’s competitive advantage built on its deep-rooted innovative business model. Since the time it was established in 1975, Zara had a philosophy of centralized design, manufacture and distribution model. Though the company expanded globally, it never changed its centralized model. Moreover, Zara’s business model could not be duplicated by its competitors. What were the merits and demerits of a centralized business and supply chain model? Why could it not be duplicated? How does Zara achieve a competitive advantage out of this model and sustain it? What unique value proposition does Zara offer to its customers using a centralized model? This case flyer is suitable to teach concepts in the courses of Business Strategy, Business Model/Operating Model and Supply Chain Management. The case flyer also discusses Zara’s expansion in China and debates whether Zara should localize or stay centralized.
URL: http://www.etcases.com/zara-s-competitive-advantage.html
Zara is a Spanish clothing retailer known for its rapid production of new designs to match emerging fashion trends. It operates over 1,700 stores worldwide and launches around 10,000 new designs each year, getting products to stores in just two weeks compared to the industry average of six months. Zara's supply chain and production model allows it to be more responsive to trends and offer a wider variety of fashionable products at affordable prices. It has experienced rapid international expansion and growth over the past few decades to become one of the largest and most profitable clothing retailers globally.
This document provides information about Zara, the largest clothing company owned by the Spanish fashion group Inditex. It discusses Zara's business model, strategies, and supply chain management approach. Zara aims to continuously innovate and provide new, affordable designs made from quality materials to satisfy customer desires. Through its fast fashion model, Zara is able to design, produce, and distribute new collections to stores within weeks, allowing it to stay on top of the latest trends. Zara has over 1,900 stores globally and is a leader in the fast fashion industry due to its ability to quickly replicate designs at low prices.
This document summarizes a journal article about the internationalization of the Spanish fashion brand Zara. It provides background on Zara and its business model, which focuses on quick production turnaround and receiving frequent small shipments to stores based on customer feedback. The summary discusses Zara's international expansion, including its motivations such as market saturation at home and opportunities abroad from trade liberalization. Key aspects of Zara's internationalization process are also covered, such as its selection of major fashion markets and use of different entry strategies in different countries.
This document provides information about the fashion brand Zara, including:
1) Zara is owned by Inditex, one of the largest fashion retailers in the world, which operates over 6,000 stores globally and several other brands.
2) Zara prides itself on having the latest fashion trends at affordable prices and short production cycles to constantly refresh stores.
3) Financial information is presented showing Inditex's increasing sales and profits from 2010-2014, with Zara being the leading brand.
This document provides an overview and analysis of the Spanish clothing retailer Zara. It discusses:
1) Zara was founded in 1975 in Spain and is now one of the world's largest retailers, known for quick production cycles and trendy designs.
2) Zara's business model focuses on frequent new product introductions, short production cycles, over 1,000 suppliers, and fast delivery to over 6,000 stores worldwide.
3) Zara's target market is fashion-conscious consumers aged 15-45, with a focus on women's and men's clothing. The analysis identifies opportunities in the growing plus-size segment.
The presentation has been prepared by the students of MFM(Master of Fashion Management), NIFT, Delhi as a part of the study on the Inventory Management of ZARA.
Group project for Global Sourcing and Supply Chain Management in China.
We learned an immense amount about e-commerce and fast fashion to supply chain (turnaround rates, warehouse management, etc).
Zara is a large international fashion company known for its rapid response to new fashion trends. It focuses on understanding customer demand and delivering desired items quickly through efficient production and distribution. Zara releases about 11,000 new designs each year, holding only 6 days of inventory compared to weeks for competitors. This allows it to provide on-trend fashion at affordable prices through a unique and vertically integrated business model.
Carrine Kezia Aulia presented a final project on Zara, a global fashion retailer owned by Inditex Group. The 3-sentence summary is:
Zara was founded in 1975 in La Coruna, Spain and has grown to over 1,700 stores in 82 countries, known for its ability to spot trends and quickly design and produce fashionable clothing at affordable prices. The presentation outlined Zara's company profile, operations in Spain and commitment to corporate social responsibility, as well as its strategic plan to expand further in Asia through improving its online presence and social media engagement. Competitors including H&M, Gap, and Uniqlo were also discussed.
- Zara is a major clothing brand owned by Spanish company Inditex that operates a unique fast fashion business model. Unlike other brands, Zara produces small quantities of clothing and replenishes stores frequently based on real-time customer feedback.
- Zara maintains control over its entire supply chain from design to manufacturing to distribution. This vertical integration allows it to produce and deliver new designs to stores within 2 weeks.
- For the US market, Zara should start with an aggressive online presence to test demand before opening physical stores focused on major coastal cities. An initial online-focused strategy allows it to learn customer preferences at lower cost and risk.
Brief of article" internationalisation of the Spanish fashion brand Zara ", Lopez, C., & Fan ,Y., (2009),Internationalisation of the Spanish fashion brand Zara. Journal of Fashion Marketing and Management ,13(2),279-296
International strategy at Zara is defined by the combined generic strategy of cost leadership and differentiation strategy. There are considerations, however, such as when selecting the Lebanese market, labor cost and productivity, distribution cost and shipment cost of raw materials are considered. Other considerations are characteristics or behavior of consumers and income per capita. In terms of marketing approach, the considerations include the 4Ps inherent to the Lebanese consumers and business environment. Market entry considerations include economics, both macroeconomic factors which include tax, political condition and export tariff and microeconomic factors including local competitors, demand and location of store. Regulation from government and local producers protection issues are other considerations.
Zara- Case Study
Known for its fast, affordable fashion, retail chain Zara has built up a multi-billion dollar brand through listening and reacting quickly to its customers
Zara has built a highly efficient supply chain and logistics system that allows it to bring new fashion designs from concept to stores in just 2 weeks. It uses a vertically integrated model where designs are created based on data from stores. Approved designs are quickly manufactured in nearby factories before being shipped to stores twice per week. Zara is proposing to expand this efficient model to the US by opening local distribution centers to manufacture and distribute to North American stores within 24 hours, reducing shipping costs and improving fashionability for American customers. While outsourcing logistics could improve efficiency, it risks losing control over their specialized system which is key to Zara's success.
Zara is a Spanish clothing retailer founded in 1975 known for its rapid response to fashion trends. It has over 1,600 stores worldwide and is a flagship brand of the Inditex group. Zara's business strategy focuses on design, manufacturing, and logistics to produce trendy clothing in only 2-3 weeks. Zara's designers attend fashion shows to develop initial collections 9 months in advance and make constant adjustments based on sales data and customer feedback. Manufacturing is split between company-owned factories in Europe and outsourcing to factories globally to maximize flexibility and quick production turnaround.
Zara is one of the world's most successful fashion retailers operating in over 90 countries. It is known for its ability to design and produce new fashion items in as little as two weeks and get them to stores. The presentation provides an overview of Zara's history, business model, products, manufacturing, distribution network, competitors, and factors for its continued success. It concludes that Zara has transformed from a local Spanish brand into a truly global brand through its integrated business model and supply chain that allows it to quickly adapt to shifting fashion trends and consumer demands.
Zara is a large global fashion retailer owned by the Spanish company Inditex. It operates over 2,000 stores worldwide and is known for its fast fashion business model. The document discusses Zara's business strategies including vertical integration, rapid production cycles, and limited advertising. It also analyzes Zara using various marketing frameworks such as the marketing mix, services marketing, and McDonaldization. A survey was conducted to understand customer perceptions of Zara. While mostly positive, some issues around ethics and lack of communication capabilities were identified.
Inditex Group is one of the world's largest fashion retailers operating eight store formats including Zara, Pull & Bear, and Massimo Dutti. It has over 4,780 stores in 77 countries. Zara pioneered a rapid fashion model, opening its first store in 1975 in A Coruña, Spain. By 2004, Inditex had expanded to over 2,000 stores across 56 countries. The company has over 92,000 employees worldwide focused on teamwork and sustainability.
This document provides an overview of Zara and its business model. It discusses Zara's origins in Spain and its rapid expansion globally. It describes Zara's vertical integration approach and its ability to design, manufacture, and deliver new fashion items to stores within 4-5 weeks. This allows Zara to be highly responsive to the latest trends. The document also examines Zara's use of information systems and the current dilemma it faces regarding upgrading its point-of-sale systems from the aging DOS operating system.
This document provides an overview and analysis of the Spanish fashion retailer Zara. It begins with an introduction to the company's history and operations. It then includes sections on a SWOT analysis, Porter's Five Forces analysis, a PESTLE analysis, and a conclusion. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors that affect Zara. It finds that factors like trade agreements, labor costs, brand perception, technology use, sustainability efforts, and fast fashion impacts all influence Zara's business environment. The document concludes that Zara's unique supply chain and efficient operations give it a competitive advantage in the market.
Zara has achieved strong financial success through its unique business model. It produces 60% of products in-house, allowing rapid design changes and limited inventory to create scarcity. Store staff quickly relay sales data to designers. Zara's vertical integration, rapid production cycles, and global real estate strategy give it advantages over retailers that outsource manufacturing. However, Zara relies heavily on its largest brand, faces challenges expanding in the US, and risks from a strengthening Euro or increased competition may threaten its future growth.
Zara is a clothing brand owned by Spanish fashion company Inditex. It leads the international expansion of Inditex and provides 78% of its total revenues. Zara is known for fashionable and affordable clothing with short lead times and low inventories. In recent years, Zara's revenues have grown 23% and it has increased its international presence through new store openings abroad. Zara's business model relies on rapid design, production, and distribution to keep up with the latest fashion trends at low prices through a vertically integrated supply chain.
ZARA is a Spanish clothing brand owned by Inditex that pioneered fast fashion. ZARA's business model emphasizes vertical integration, producing clothing in small batches close to stores to facilitate quick response to trends. Stores provide frequent feedback to help designers continuously adapt products. About half of materials and 40% of products are manufactured internally. Distribution centers use advanced tracking to deliver to stores within 1-2 days in Europe and 2-4 days outside Europe. ZARA's approach reduces risks from unsold inventory compared to competitors. Its international growth follows an "oil stain" pattern entering culturally similar markets with company-owned stores.
1) Zara has developed a super-responsive supply chain that can design, produce, and deliver new garments to stores worldwide in just 15 days.
2) Zara's supply chain success is built on three principles - closing the communication loop between all parts of the chain, sticking to a regular rhythm across design, production, and distribution, and leveraging owned capital assets to increase flexibility.
3) These principles reinforce each other to optimize the entire supply chain and allow Zara to sustain a fast fashion model that keeps customers engaged with frequent new deliveries to stores.
This document provides information about the fashion brand Zara, including:
1) Zara is owned by Inditex, one of the largest fashion retailers in the world, which operates over 6,000 stores globally and several other brands.
2) Zara prides itself on having the latest fashion trends at affordable prices and short production cycles to constantly refresh stores.
3) Financial information is presented showing Inditex's increasing sales and profits from 2010-2014, with Zara being the leading brand.
This document provides an overview and analysis of the Spanish clothing retailer Zara. It discusses:
1) Zara was founded in 1975 in Spain and is now one of the world's largest retailers, known for quick production cycles and trendy designs.
2) Zara's business model focuses on frequent new product introductions, short production cycles, over 1,000 suppliers, and fast delivery to over 6,000 stores worldwide.
3) Zara's target market is fashion-conscious consumers aged 15-45, with a focus on women's and men's clothing. The analysis identifies opportunities in the growing plus-size segment.
The presentation has been prepared by the students of MFM(Master of Fashion Management), NIFT, Delhi as a part of the study on the Inventory Management of ZARA.
Group project for Global Sourcing and Supply Chain Management in China.
We learned an immense amount about e-commerce and fast fashion to supply chain (turnaround rates, warehouse management, etc).
Zara is a large international fashion company known for its rapid response to new fashion trends. It focuses on understanding customer demand and delivering desired items quickly through efficient production and distribution. Zara releases about 11,000 new designs each year, holding only 6 days of inventory compared to weeks for competitors. This allows it to provide on-trend fashion at affordable prices through a unique and vertically integrated business model.
Carrine Kezia Aulia presented a final project on Zara, a global fashion retailer owned by Inditex Group. The 3-sentence summary is:
Zara was founded in 1975 in La Coruna, Spain and has grown to over 1,700 stores in 82 countries, known for its ability to spot trends and quickly design and produce fashionable clothing at affordable prices. The presentation outlined Zara's company profile, operations in Spain and commitment to corporate social responsibility, as well as its strategic plan to expand further in Asia through improving its online presence and social media engagement. Competitors including H&M, Gap, and Uniqlo were also discussed.
- Zara is a major clothing brand owned by Spanish company Inditex that operates a unique fast fashion business model. Unlike other brands, Zara produces small quantities of clothing and replenishes stores frequently based on real-time customer feedback.
- Zara maintains control over its entire supply chain from design to manufacturing to distribution. This vertical integration allows it to produce and deliver new designs to stores within 2 weeks.
- For the US market, Zara should start with an aggressive online presence to test demand before opening physical stores focused on major coastal cities. An initial online-focused strategy allows it to learn customer preferences at lower cost and risk.
Brief of article" internationalisation of the Spanish fashion brand Zara ", Lopez, C., & Fan ,Y., (2009),Internationalisation of the Spanish fashion brand Zara. Journal of Fashion Marketing and Management ,13(2),279-296
International strategy at Zara is defined by the combined generic strategy of cost leadership and differentiation strategy. There are considerations, however, such as when selecting the Lebanese market, labor cost and productivity, distribution cost and shipment cost of raw materials are considered. Other considerations are characteristics or behavior of consumers and income per capita. In terms of marketing approach, the considerations include the 4Ps inherent to the Lebanese consumers and business environment. Market entry considerations include economics, both macroeconomic factors which include tax, political condition and export tariff and microeconomic factors including local competitors, demand and location of store. Regulation from government and local producers protection issues are other considerations.
Zara- Case Study
Known for its fast, affordable fashion, retail chain Zara has built up a multi-billion dollar brand through listening and reacting quickly to its customers
Zara has built a highly efficient supply chain and logistics system that allows it to bring new fashion designs from concept to stores in just 2 weeks. It uses a vertically integrated model where designs are created based on data from stores. Approved designs are quickly manufactured in nearby factories before being shipped to stores twice per week. Zara is proposing to expand this efficient model to the US by opening local distribution centers to manufacture and distribute to North American stores within 24 hours, reducing shipping costs and improving fashionability for American customers. While outsourcing logistics could improve efficiency, it risks losing control over their specialized system which is key to Zara's success.
Zara is a Spanish clothing retailer founded in 1975 known for its rapid response to fashion trends. It has over 1,600 stores worldwide and is a flagship brand of the Inditex group. Zara's business strategy focuses on design, manufacturing, and logistics to produce trendy clothing in only 2-3 weeks. Zara's designers attend fashion shows to develop initial collections 9 months in advance and make constant adjustments based on sales data and customer feedback. Manufacturing is split between company-owned factories in Europe and outsourcing to factories globally to maximize flexibility and quick production turnaround.
Zara is one of the world's most successful fashion retailers operating in over 90 countries. It is known for its ability to design and produce new fashion items in as little as two weeks and get them to stores. The presentation provides an overview of Zara's history, business model, products, manufacturing, distribution network, competitors, and factors for its continued success. It concludes that Zara has transformed from a local Spanish brand into a truly global brand through its integrated business model and supply chain that allows it to quickly adapt to shifting fashion trends and consumer demands.
Zara is a large global fashion retailer owned by the Spanish company Inditex. It operates over 2,000 stores worldwide and is known for its fast fashion business model. The document discusses Zara's business strategies including vertical integration, rapid production cycles, and limited advertising. It also analyzes Zara using various marketing frameworks such as the marketing mix, services marketing, and McDonaldization. A survey was conducted to understand customer perceptions of Zara. While mostly positive, some issues around ethics and lack of communication capabilities were identified.
Inditex Group is one of the world's largest fashion retailers operating eight store formats including Zara, Pull & Bear, and Massimo Dutti. It has over 4,780 stores in 77 countries. Zara pioneered a rapid fashion model, opening its first store in 1975 in A Coruña, Spain. By 2004, Inditex had expanded to over 2,000 stores across 56 countries. The company has over 92,000 employees worldwide focused on teamwork and sustainability.
This document provides an overview of Zara and its business model. It discusses Zara's origins in Spain and its rapid expansion globally. It describes Zara's vertical integration approach and its ability to design, manufacture, and deliver new fashion items to stores within 4-5 weeks. This allows Zara to be highly responsive to the latest trends. The document also examines Zara's use of information systems and the current dilemma it faces regarding upgrading its point-of-sale systems from the aging DOS operating system.
This document provides an overview and analysis of the Spanish fashion retailer Zara. It begins with an introduction to the company's history and operations. It then includes sections on a SWOT analysis, Porter's Five Forces analysis, a PESTLE analysis, and a conclusion. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors that affect Zara. It finds that factors like trade agreements, labor costs, brand perception, technology use, sustainability efforts, and fast fashion impacts all influence Zara's business environment. The document concludes that Zara's unique supply chain and efficient operations give it a competitive advantage in the market.
Zara has achieved strong financial success through its unique business model. It produces 60% of products in-house, allowing rapid design changes and limited inventory to create scarcity. Store staff quickly relay sales data to designers. Zara's vertical integration, rapid production cycles, and global real estate strategy give it advantages over retailers that outsource manufacturing. However, Zara relies heavily on its largest brand, faces challenges expanding in the US, and risks from a strengthening Euro or increased competition may threaten its future growth.
Zara is a clothing brand owned by Spanish fashion company Inditex. It leads the international expansion of Inditex and provides 78% of its total revenues. Zara is known for fashionable and affordable clothing with short lead times and low inventories. In recent years, Zara's revenues have grown 23% and it has increased its international presence through new store openings abroad. Zara's business model relies on rapid design, production, and distribution to keep up with the latest fashion trends at low prices through a vertically integrated supply chain.
ZARA is a Spanish clothing brand owned by Inditex that pioneered fast fashion. ZARA's business model emphasizes vertical integration, producing clothing in small batches close to stores to facilitate quick response to trends. Stores provide frequent feedback to help designers continuously adapt products. About half of materials and 40% of products are manufactured internally. Distribution centers use advanced tracking to deliver to stores within 1-2 days in Europe and 2-4 days outside Europe. ZARA's approach reduces risks from unsold inventory compared to competitors. Its international growth follows an "oil stain" pattern entering culturally similar markets with company-owned stores.
1) Zara has developed a super-responsive supply chain that can design, produce, and deliver new garments to stores worldwide in just 15 days.
2) Zara's supply chain success is built on three principles - closing the communication loop between all parts of the chain, sticking to a regular rhythm across design, production, and distribution, and leveraging owned capital assets to increase flexibility.
3) These principles reinforce each other to optimize the entire supply chain and allow Zara to sustain a fast fashion model that keeps customers engaged with frequent new deliveries to stores.
Microsoft power point zara strategy caseTanya Boichun
Zara has been able to achieve competitive advantage and sustained profits above industry averages through its business model and vertical integration. It can design, produce, and deliver new fashion items to stores within 2-3 weeks, much faster than competitors. This speed and flexibility allows Zara to stay responsive to the latest trends. Its organizational structure with store manager autonomy and technological integration of feedback also enables rapid design adaptation. While imitable, Zara's full business model would be difficult for competitors to copy due to the costs and time required to develop comparable integration, culture, and processes.
Zara is a clothing brand known for fast fashion. It was founded in 1963 in Spain and opened its first store in 1975. Since then, Zara has expanded globally and now has over 2,000 stores in 96 countries. Zara's success is largely due to its ability to design and produce clothing in only two weeks in order to quickly respond to the latest fashion trends. It focuses on rapid production in small quantities, frequent store replenishments, and using its stores as a way to get customer feedback. Zara's core competencies include its vertical integration of design, production, and sales as well as its ability to quickly recreate fashion.
This document provides information about Zara's supply chain management practices. It discusses how Zara was founded and expanded globally. It then describes Zara's fast fashion strategy and how they are able to introduce new designs quickly through vertical integration. The document outlines Zara's processes for spotting trends, designing, production, distribution, store layout, and reaping benefits from their supply chain system. It also discusses some challenges for Zara's supply chain with further expansion and potential modifications needed.
The document discusses Zara's business model and use of technology. Some key points:
1. Zara links customer demand directly to manufacturing and distribution through vertical integration. Designers gather customer data from stores to quickly design and produce new products.
2. Products move from design to stores in just 3 weeks, much faster than competitors. Information technology helps share designs and gather sales data from stores twice weekly.
3. By producing locally and frequently updating stock based on sales, Zara can respond rapidly to fashion trends and consumer demands. This keeps customers returning to stores regularly.
Zara is a highly successful fashion retailer known for its fast fashion model. It introduces new designs two weeks after seeing them on runways rather than the industry standard of six months. Zara achieves this through an integrated operation strategy that allows for quick design, production, and distribution. Stores provide immediate customer feedback that designers use to create new items. Factories located in Spain enable rapid production to meet changing demand. An efficient supply chain distributes goods to stores within 24 hours in Europe. This strategy of speed, affordability, and variety has made Zara one of the world's largest clothing retailers.
Zara is a Spanish clothing retailer known for its rapid 2-week production cycle and frequent new designs. It operates integrated supply chains to develop 10,000 new products annually. Zara designs most products in-house and manufactures half itself using nearby factories, with the rest outsourced to European and some Asian suppliers. Zara's design, production, distribution and store teams work closely together to quickly translate sales data into new production runs, allowing frequent updates to match changing fashion trends.
The project is a study on how Vertical Integration as a supply chain strategy has worked for Zara in emerging as a fast fashion system. It also focuses on analyzing the competitive advantages and the challenges of implementing Vertical Integration for Zara.
ZARA uses several strategies to stay ahead of competitors in the fashion industry:
1) It encourages more frequent purchases by quickly introducing new items weekly and controlling its entire supply chain, allowing it to produce styles in as little as 3 weeks compared to an industry average of 9 months.
2) It identifies new customer groups and market locations to expand into through monitoring trends and consumer behavior.
3) It develops new products through a team that travels worldwide to discover trends and introduces around 40,000 annual designs, selecting 10,000 for production.
ZARA Case Study: Role of Supply chain in organizational Successsadia butt
This document discusses the supply chain of Zara, a Spanish clothing retailer known for its fast fashion model. It outlines Zara's vertically integrated supply chain that allows it to design, manufacture, and distribute clothing in as little as 2-3 weeks. Key factors in Zara's supply chain success include vertical integration, use of information technologies to gain customer insights, and shorter lead times enabled by local sourcing and production in small batches.
Zara is the largest clothing retailer in the world operating in 59 countries. It pioneered a business model focused on quick response to fashion trends through vertical integration and a unique supply chain allowing new designs from concept to stores in under two weeks. Zara began expanding internationally in 1988 and now has over 800 stores worldwide using different entry strategies like subsidiaries, joint ventures, and franchising depending on the market. Its competitive advantages of fast fashion, quality products at affordable prices, and minimal advertising have made it highly successful and the main competitor to H&M and Gap in global markets.
For ZARA stores to be able to offer cutting edge fashion at affordable prices requires the firm to exert a strong influence over almost the entire garment supply chain.
Zara is a Spanish clothing and accessories retailer founded in 1975 that uses a business model focused on quick response and efficient supply chain management. It operates over 2,000 stores worldwide and is known for delivering fashionable and high-quality clothing at affordable prices. Zara achieves this through a hybrid business strategy focused on short lead times, producing lower quantities of more styles, and reacting quickly to fashion trends rather than relying on forecasts. Its vertically integrated supply chain allows it to design, manufacture, and distribute products to stores in under 4 weeks. This rapid response capability and continual freshness of offerings has enabled Zara to gain a competitive advantage over rivals.
Zara is a Spanish clothing brand and flagship of Inditex group. It sells affordable, high quality men's, women's and children's clothing and accessories. Zara uses a fast fashion model, designing and manufacturing small batches based on latest trends and delivering to stores twice weekly. This allows Zara to imitate trends quickly and gives it an advantage over competitors. Zara has over 2,100 stores globally and also sells online. Its centralized system of in-house production enables fast response time to trends but is also a weakness if disrupted. While Zara has opportunities for further global expansion, it faces threats from increasing competition and its focus on imitation rather than collaboration limits premium brand status.
Zara is a Spanish clothing retailer known for its fast fashion model. It operates 1700 stores globally and launches around 12,000 new designs per year. Zara achieves fast inventory turnover through a vertically integrated supply chain that designs, manufactures, and distributes products to stores within 2-3 weeks. Fifty percent of products are made in Spain to facilitate rapid replenishment of stores with new designs twice per week. Zara's supply chain model allows it to stay on the cutting edge of fashion trends at affordable prices.
Zara is a leading global fashion retailer known for its fast fashion model. It introduces about 10,000 new design styles each year, receiving new shipments to stores twice a week to showcase the latest trends. Zara achieves this through a vertically integrated supply chain and just-in-time manufacturing process that allows it to copy catwalk designs and get them to stores in 2-3 weeks. Key to its success is the effective communication between stores, designers, and manufacturers enabled by an advanced IT system. This allows Zara to understand emerging trends and quickly design and produce small batches of garments to meet consumer demand.
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Communicating effectively and consistently with students can help them feel at ease during their learning experience and provide the instructor with a communication trail to track the course's progress. This workshop will take you through constructing an engaging course container to facilitate effective communication.
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
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Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
Zara1 101017144029-phpapp02
1. Christian Deing
Simon Luyken
Julika Reusse
Sebastian Stratmann
Anna Worster
1. What are the sources of Zara’s competitive advantage?
What is unique compared to H&M, The Gap and Benetton?
2. competitive advantage
Competitive advantage is defined as:
• a performance feature, which is silhouetted against other
competitors
• has to be tenable and economic
• is able to reach dimensions like price, time and quality, e.g.
cost advantage or differentation advantage
3. INDITEX
Brand Number of stores
ZARA 1501
Bershka 573
Pull and Bear 567
Massimo Dutti 461
INDITEX
Stradivarius
Oysho
444
363
ZARA Home 237
Uterqüe 24
Total 4.170
Quelle: www.inditex.com
4. ZARA
• 1501 stores in 71 countries in 2008
• Employees 25.000
• Employed €1,050 million of the company´s capital in 2001
72% of the total capital of INDITEX
•Revenue of €6,264 million in 2007
67% of the total of INDITEX
5. ZARA
• Headquarter in Arteixo, outside La Coruna
• Manufacturing most of the fashion-sensitive products internally
• ZARA´s designers produce about 11.000 distinct items during the year
competitors: 2000-4000 items
• Products are shipped to well-located stores twice a week
• Finished goods in stores within four to five weeks (entirely new designs)
in two weeks for modifications of existing products
6. Competitors
H&M The GAP Benetton
stores 1.700 3.100 5.500
countries 33 19 120
employees 68.000 152.000 8.000
designers 100 n.s. 300
revenue €9.6 billion $15.8 billion €2.085 billion
7. Comparison: ZARA vs. H&M
-vertical integration -all production outsourced
⇒Short lead times ⇒Long lead times
- engages many designers -60 % fewer designers
⇒Originate designs in a few weeks
- one distribution center -a distribution center in each country
⇒Better survey over inventory ⇒High costs
⇒ low costs
- expand very fast -expand very slow
(stores in 39 countries) (stores in 8 countries)
- stores as a „face to the world“ - no focus on store makeups
⇒Competitive advantage
8. Comparison: ZARA vs. Benetton
- three different modes for -one main mode for
expansion: expansion:
1.Franchise systems 1. Licensees
2.Company owned stores
3.Joint Ventures
⇒Competitive advantage
9. Comparison: ZARA vs. GAP
- vertical integration - outsourced all production
⇒Short lead times ⇒Long lead times
- fast expansion in 39 - slow expansion in 5
countries countries
⇒Competitive advantage
10. What‘s unique about ZARA?
- freshness (fast production and distribution to offer the latest
fashion)
-Change 75 % of the merchandise on display every 3 or 4 weeks
⇒The frequency of customer visits rises
⇒Scarcity
-few advertisement
⇒Customers need to visit stores to get the newest fashion
⇒Save costs for publicity
11. Case Study 2:
ZARA: Fast Fashion
Group 7:
Matthias Freese, Thorsten Hiedels
Kirstin Jansen, Sabine Kürten
Aleksandra Ludwa, Jennifer Montag
Johanna v. d. Asseburg
Case Study 2: ZARA: Fast Fashion, Group 7 1
12. Table of contents
1 Introduction
2 Zara’s Business System
3 Pros and cons of Zara’s activity architecture with regard to The
Gap, H&M and Benetton and in light of the changing
environment
Case Study 2: ZARA: Fast Fashion, Group 7 2
13. 1 Introduction
- Inditex:
- umbrella group of Zara and 5 other apparel chains
- founded in 1963 in Galicia, Spain
- Zara:
- headquarters in Arteixo, Spain
- till 2002: 507 stores in 42 countries
- position: “medium quality fashion clothing at affordable
prices“
- competitors: The Gap, H&M, Benetton
Case Study 2: ZARA: Fast Fashion, Group 7 3
14. 2 Zara‘s business system
Activity circle:
Case Study 2: ZARA: Fast Fashion, Group 7 4
15. Design
- creative teams
- different sources for information: store managers, consumption
information system, TV, internet, industry publications, film,
trend spotters, ready-to-wear fashion shows
- first sketches about nine months before start of a season
- presentation in certain key stores
- determined prices
Case Study 2: ZARA: Fast Fashion, Group 7 5
16. Sourcing and Manufacturing
- assistance of purchasing offices in Barcelona and Hong Kong
- more than 200 external suppliers
- 60% of the clothes produced externally, 40% internally
- 450 workshops where garments are sewed
Case Study 2: ZARA: Fast Fashion, Group 7 6
17. Distribution
- own distribution center in Arteixo
- satellite center in Argentina, Brazil and Mexico
- center works on a dual-shift basis
- equipped with mobile tracking system
- delivery upon Europe takes about 24-36 hours, outside Europe 24-48
hours
- scheduled shipments by time zones
- establishment of a second distribution center at Zaragoza in 2003
Case Study 2: ZARA: Fast Fashion, Group 7 7
18. Retailing
- consists of merchandising and store operations
- stores placed in premier shopping streets and centers
- set high value on presentation of store window displays:
prototypes at headquarters
- continuous training on their personnel
- very low advertising expenditures, no fashion shows
- main retailing-tactic: create a sense of scarcity
- aim: reduce inventories at marked-down prices
Case Study 2: ZARA: Fast Fashion, Group 7 8
19. 3 Pros and cons of Zara‘s activity architecture
- most significant advantage: reduced cycle time due to the
implementation of the quick response system
Case Study 2: ZARA: Fast Fashion, Group 7 9
20. 3 Pros and cons of Zara‘s activity architecture
- different product precommitement:
Case Study 2: ZARA: Fast Fashion, Group 7 10
21. 3 Pros and cons of Zara‘s activity architecture
Design:
+ store managers gather information directly at point of sale
+ design department organized in flat structure
- Zara has more staff employed although it is smaller than H&M
higher labor costs, but lower risk of fashion miss (as H&M)
+ continuous tracking of customer preferences
numerous variations of items
+ presentation of items in key stores
reduced failure rates
Case Study 2: ZARA: Fast Fashion, Group 7 11
22. 3 Pros and cons of Zara‘s activity architecture
Sourcing and Manufacturing:
+ in-house production of 40% of the garments
better control of most fashionable clothes
short lead times
+ offers always the latest fashion trends
+ change of MFA: no import quotas and reduced tariffs
no more barriers for outsourcing production, but larger
benefits for H&M
- increasing complexity of cross-border intermediaries
higher coordination costs
Case Study 2: ZARA: Fast Fashion, Group 7 12
23. 3 Pros and cons of Zara‘s activity architecture
Distribution:
+ cost savings by centralized distribution center
- capacity problems with only one center when Zara keeps
expanding
establishment of second distribution center
- H&M: closer to the market by decentralized distribution center in
each country
does not need scheduled shipments by time zones
Case Study 2: ZARA: Fast Fashion, Group 7 13
24. 3 Pros and cons of Zara‘s activity architecture
Retailing:
+ flexibility of operating in the best spots by using joint-ventures
+ standardized offering: 85%-90% basic items
satisfaction of many markets with little effort
even easier in the future as tastes assimilate
+ standardization of store window displays
consistent image
low costs
but: ignorance of individual preferences
- low advertising expenditures
missing of the chance to gain more customers
no communication of social responsibility as Benetton does
Case Study 2: ZARA: Fast Fashion, Group 7 14
25. Thank you very much for your
attention!
Case Study 2: ZARA: Fast Fashion, Group 7 15
26. Harvard Business Case Study “ZARA: Fast Fashion”
Question 3:
Evaluate ZARA’s global strategy in light of the
McKinsey recommendations in the assigned reading1.
How does it compare?
1: Incandela, D.; McLaughlin, K.L.; Smith Shi, C. (1999): Retailers to the World, in: The McKinsey Quarterly,
Vol. 3, pp. 84-97.
27. Agenda
• Introduction to ZARA’s international operations
• Recommendations by McKinsey
• Evaluative comparison
• Summary of conclusions and recommendations
28. Agenda
• Introduction to ZARA’s international operations
• Recommendations by McKinsey
• Evaluative comparison
• Summary of conclusions and recommendations
29. Introduction to ZARA’s international operations
largest and most internationalized chain of Inditex
282 stores in 32 countries outside Spain (in the end of 2001)
expansion began in 1988 in Oporto, Portugal
rapid internationalization between 1998-1999: 16 countries
ZARA is expanding very rapidly
in comparison to other retailers like H&M,
who added only 8 countries in 20 years
Source: McKinsey (1999)
HBS Case Study “ZARA”, Gruppe 8 4
30. Agenda
• Introduction to ZARA’s international operations
• Recommendations by McKinsey
• Evaluative comparison
• Summary of conclusions and recommendations
31. Five approaches to launch a self-reinforcing cycle of
benefits propelled by access, scale and expertise
Choose your sliver - decisions about which The “virtuous circle”
1 sliver to own, which to control without
owning and which to off-load are necessary
Get comfortable partnering – access to
2 new distribution systems and brand equity
Invest in intangible assets - the new
3 source of competitive advantage 3. Expertise 1. Access
• brands and reputation
• technology and know how
• talent and skills
Keep expenses and capital require-
4 ments low – by centralization, restructuring
and outsourcing 2. Scale
Exploit opportunities to arbitrage –
5 by value proposition arbitrage
and/or cross-border arbitrage
Source: McKinsey (1999)
HBS Case Study “ZARA”, Gruppe 8 6
32. Agenda
• Introduction to ZARA’s international operations
• Recommendations by McKinsey
• Evaluative comparison
• Summary of conclusions and recommendations
33. 1
McKinsey recommends retailers to optimize the value
chain by focusing on slivers
Companies have to decide which slivers of the value chain
to own, partly-own or to off-load
• It is not always efficient to own all parts of the value chain
Reason: • Some processes have very high outsourcing potential
Outsourcing decision drivers:
Cash Flow Capital Requirements Risk Competitive Advantage
Source: McKinsey (1999)
HBS Case Study “ZARA”, Gruppe 8 8
34. 1
Selected Slivers of ZARA’s Value Chain
Slivers and Processes
Design: Sourcing:
All design related processes are fullfilled
In ZARA’s Responsibility All sourcing activities are done externally.
Fully outsourced
inside the company.
Manufacturing: Logistics:
Basic-items are manufactured in Asia. Fashion Logistics are completely outsourced. About
Partly outsourced
items are more risky and therefore produced 75% are deliveredoutsourced
Fully by truck. The remeining
by ZARA‘s fully owned factories ones are manily organized by airmal.
Sales: Distribution:
ZARA delegated store management espacially All distribution processes are supervised and
Partly outsourced
in smaller and riskier countries by using In ZARA’s Responsibility
executed from one central and fully-owned
franchising. Joint Ventures are used if prime distribution center in Spain.
shopping space is not avaiable for ownership.
ZARA decided carefully on which slivers to concentrate and which to off-load
Therefore ZARA succeeded in implementing McKinsey’s advice concerning the value chain
HBS Case Study “ZARA”, Gruppe 8 9
35. 2
McKinsey recommends to establish partnerships to be
successful internationally
Build partnerships
• To get leads
• To enhance the distribution system
• To build brand equity in new markets
Remain in control of these alliances !
Source: McKinsey (1999)
HBS Case Study “ZARA”, Gruppe 8 10
36. 2
ZARA has established controlled partnerships in
production and downstream activities
Manufacturing
ZARA has long-term relations with suppliers CONTROL
and subcontractors
Sales
In smaller and riskier countries, ZARA uses
Franchise Systems CONTROL
Joint Ventures are used in mature and more
established markets like for example Germany
ZARA has successfully implemented McKinsey’s recommendations
regarding partnerships
HBS Case Study “ZARA”, Gruppe 8 11
37. 3
McKinsey recommends the investment in intangible
assets as the new source of competitive advantage
Brand and reputation IT, technology, skills People and talents
• Distinct value proposition • Invest in proprietary • Scarcity of qualified
with adjustments to technology to managers challenges HR
region/country specific - improve customer access policies
differences - raise service levels
- increase business • Build up talent pools in
• Personality of the brand efficiency several stages
must appeal to target group
and be reinforced at every
contact point
• Total visibility of the brand
through all appropriate
communication channels
Source: McKinsey (1999)
HBS Case Study “ZARA”, Gruppe 8 12
38. 3
Regarding the investment in intangible assets, ZARA
focuses on innovative technologies
Brand and reputation IT, technology, skills People and talents
• adjustment of marketing • strong investment in • incentive-intense payment
mix to country individual technology since 1990 model for store managers
needs - innovative JIT - variable parts based on
- experience gained in manufacturing system (co- store performance
flagship store developed with Toyota) • low hierarchies
- price according to WTP - advanced - store managers as
- slightly different portfolio telecommunication system entrepreneurs
• concentration on store - sophisticated consumption • advanced training program
image information system
• But: scarcity of store
high brand awareness managers is main barrier to
• comparably little further expansion
investments in advertising, - 90% recruited from within
esp. in foreign markets
ZARA almost meets the McKinsey recommendations w.r.t. intangibles
ZARA should invest more in international brand power using various media channels
and put stronger emphasis on international recruitment
HBS Case Study “ZARA”, Gruppe 8 13
39. 4
McKinsey recommends retailers to strive to be
“expense and capital light”
Keep expenses and capital requirements low
Realize greater purchasing benefits and margins
by reducing capital commitment and costs
Manage a low need for capital Decide about global sourcing Centralize overlapping
by franchising or renting rather activities and IT investments category groups, e.g. finance
than owning stores functions
Source: McKinsey (1999)
HBS Case Study “ZARA”, Gruppe 8 14
40. 4
ZARA has taken numerous measures to keep expenses
and capital requirements low
Operation Impact
• integrated just-in-time manufacturing system, short lead and cycle times,
central distribution center with direct shipping low storage costs
to the stores
• intense market research incl. interviews with low failure rates,
store managers and product development reach planned sales
• long-term leases instead of owning
• different business types to go global low financial strain
(own stores, joint ventures and franchising)
• flat hierarchies, e.g. design department
• main organization by divisions flexibility and shorter communication lines
(women, men and children)
• production of price-sensitive items outsourced
• minimum amount of advertising low production and selling prices, but with
• lean administrative organization expected hold up margins
ZARA strategy efficiency control corresponds to McKinsey’s advices
ZARA successfully controls its costs, realizing beneficial impact on operational results
HBS Case Study “ZARA”, Gruppe 8 15
41. 5
McKinsey recommends the exploitation of
opportunities to arbitrage in order to reduce costs
Cross-border arbitrage Value proposition arbitrage
• focus on price level when • no real differentiation among product
entering a new market portfolio across the different countries
• forecasting of prices on local • 85%-90% of products are common
market prices not on own costs • no design of products for specific
• entering markets with a higher preferences of only one country
preference for apparel (Italy) • standardized reporting systems
• same business model in similar types
high rate of absorption of countries
of buying power
amortization of centralized
concepts by rolling them out
across many markets
ZARA is implementing the suggestions of the McKinsey concept
HBS Case Study “ZARA”, Gruppe 8 16
42. Optimal expansion path depends on starting situation
McKinsey strategic control map
Initial situation… …determines global strategy
high Address performance problems first. Then
1
grow by a) investing in intangibles/ load-off
(4) unattractive value chain parts and/or b)
(2)
Super- penetrating home market and global expansion
Experts
leaguers
Performance
Expand the business into new markets
2 through organic growth or acquisitions; skills
transfer and synergies are crucial success
factors
(1) (3)
Incumbents Integrators Invest in intangible assets and take further
3 means to increase performance
low
Size 4 Stabilize the successful business concept
small large
Source: McKinsey (1999)
HBS Case Study “ZARA”, Gruppe 8 17
43. ZARA heavily invested in technology to increase
profitability before starting major global expansion
ZARA’s expansion path
high
(4)
• high investments in intangible assets (2)
Super-
(esp. IT) in the 1990s, i.e. before Experts
leaguers
major phase of international
expansion Performance
• having a strong performance, ZARA
grows in size on a global scale, (1) (3)
opening 16 stores from 1998-1999 Incumbents Integrators
(282 stores in 32 countries today)
low
Size
small large
ZARA has gone the recommended global expansion path,
starting from an incumbent’s position
HBS Case Study “ZARA”, Gruppe 8 18
44. Agenda
• Introduction to ZARA’s international operations
• Recommendations by McKinsey
• Evaluative comparison
• Summary of conclusions and recommendations
45. ZARA almost completely lives up to McKinsey’s
requirements; few improvements to be realized
Approaches recommended Further improvements to be
by McKinsey addressed by ZARA in the future
1 Choose your sliver
2 Get comfortable partnering
• increase international investments
3 Invest in intangible assets in advertising
• increase international recruitment
efforts
4 Keep capital requirements low
5 Exploit opportunities to arbitrage
Source: McKinsey (1999)
HBS Case Study “ZARA”, Gruppe 8 20
47. Case Study Zara
“What do you think of Zara’s past international growth
strategy? Evaluate, in particular, its strategy for market
selection, its mode of entry, and its marketing approach. What
is the best way to grow Zara now?“
48. Agenda
Introduction – What is ZARA?
International Growth Strategy
Market Selection
Market Entry
Marketing Approach
Best way to grow Zara now
21.11.2008
49. Introduction
What is ZARA?
Foundation of Inditex (Industria de Diseno
Textil) by Amancio Ortega in 1975
ZARA is one of the six apparel chains of Inditex
(completely independent and organized
individually)
ZARA is Inditex’s most important chain
ZARA has over 500 stores in 30 countries
Fashion Collection changes twice a year
(autumn/winter & spring/summer)
Benetton, H&M and the GAP are their most
important global competitors
Unique selling proposition is due to short cycle
times
21.11.2008 Case Study ZARA: Fast Fashion 3
50. International Growth Strategy
Market Selection - Overview
Waterfall Strategy
Market Selection Process:
Countries which are similar to
ZARA’s home market
Macro Analysis
Micro Analysis
Preconditions for entering:
Minimum level of economic
development
Low entry barriers
Oil-Stain Strategy
21.11.2008 Case Study ZARA: Fast Fashion 4
51. International Growth Strategy
Market Selection - Evaluation
Enough time to explore markets from the Risk of competitors copying ZARA‘s
outside business model and entering markets
Test if their business model can be before ZARA is able to
applied to foreign markets (to reduce -> Increasing market barriers
risk)
High headquarter costs for only a few
No danger of loosing control shops in the beginning
Possibility to meet the special cultural Time-and-money consuming process
demands
Lately, ZARA decided to grow faster, enabled through their bigger
experience and equity which is a step in the right direction
21.11.2008 Case Study ZARA: Fast Fashion 5
53. International Growth Strategy
Market Entry - Evaluation
Company-owned stores
High level of influence over the behavior Require many resources such as high
of the employees capital commitment
Ability to control the Brand presentation
at POS
Franchising
Opportunity to generate fast growth Lack of control -> Image losses
without needing a lot of equity
Dependency on their partner
Overcoming cultural barriers
Joint Ventures
Sharing core competences
Dependency on a partner -> need of a
More control of the actions taken trust base
Different methods enable ZARA to meet the demand of every country
21.11.2008 Case Study ZARA: Fast Fashion 7
56. International Growth Strategy
Best Way to grow ZARA now (1/2)
ZARA needs to be more present in more
countries worldwide to strengthen the brand
name and their significance
Growth potential: Russia, East & North
Europe, Italy, Australia, South Africa
Exploration of new Markets in a short time
period -> Danger of competitors growing
Increase the amount of shops rapidly &
drastically to play a greater role in the
people‘s mind
21.11.2008 Case Study ZARA: Fast Fashion 10
57. International Growth Strategy
Best Way to grow ZARA now (2/2)
Establish a department whose task is
to visit the franchise stores
Use E-Commerce
Bigger focus on marketing (e.g.
internet, (TV) commercial, billboards)
People who bought online any of the following
products or services during the last three months
ZARA has big growth potential but they need to find the optimal balance
between risk and innovative methods to address their customers
21.11.2008 Case Study ZARA: Fast Fashion 11