Zara Fast Fashion

2099 words 9 pages
Show More
1- With which of the international competitors listed in the case is it most interesting to compare Inditex's financial results? Why? What do comparisons indicate about Inditex's relative operating economics? Its relative capital efficiency? Note that while the electronic version of Exhibit 6 automates some of the comparisons, you will probably want to dig further into them.
Background: Inditex is an international fashion retailer that designed, manufactured and sold apparel, footwear, and accessories for women, men, and children through Zara and other five chains around the world. The six retailing chains were organized as separate business units within an overall structure that also included six business support areas and nine corporate …show more content…

Knowing that there will always be new designs in a Zara store, customer will visit the store more frequently leading to more sales.
The reduction in lead-time does more than improving the forecasting. It also decreases the level of inventory, which conduct to release of capital locked up in stock, reduce the cost of holding it and the risk of stock going out of date.
3- Can you graph the linkages among Zara's choices about how to compete, particularly ones connected to its quick -response capability and the ways in which they create competitive advantage? What does the exercise suggest about such capabilities as bases for competitive advantage?
Zara choices to compete have mainly been concentrated on their quick response capability. Their ability to quickly respond to market needs with very short business cycles have given the company a distinctive competitive advantage over the competition. Below is a graph of how Zara choices created a number of competitive advantages for the company:

The above model clarifies the huge advantages gained by Zara as a result of their reduced business cycle. Not only does Zara attain higher customer satisfaction as they are quickly able to respond to their feedback and needs, but also Zara manages to highly decrease its operating costs as a result of decreased inventory held and thus lower level of risk when new models are introduced.
4- Why might Zara fail? How

Related

  • Zara Fast Fashion Case Study Solution
    4750 words | 19 pages

    closest competitor from the financial point of view. H&M differs from Zara because it outsources all of the production, it is more price oriented and spends more money on advertising. But both companies are based in Europe, are fashion forward at lower price retailers, and have a strong international expansion strategy. Exhibit 6 indicates that the financial results of Inditex and H&M seem to….

    Show More
  • Zara It for Fast Fashion Case Notes
    889 words | 4 pages

    Zara IT for Fast Fashion Case Notes Identify decision issue, and your role as a decision maker Salgado and Sanchez need to decide if it is the right time to update Zara’s information technology. The key concern is the outdated operating system they use for their point of sale (POS) terminals. Should they purchase the current POS machines from their vendors so that they can support their needs in case the vendor changes their machines to new technology? Or should they move to using new operating….

    Show More
  • Zara vs. Uniqlo
    6885 words | 28 pages

    ZARA vs. UNIQLO Team J: Bingbing Ge Lei Du Sophia Maduka Salman Syed Azim Thanadol Boonyaviwat Tanya Goel 1 Index Content Page Number Executive Summary………………………………………………………………... 4 Introduction………………………………………………………………………… 5 Industry Analysis……………………………………………………………………5 Competitive Environment……………………………………………….5 Strategic Groups………………………………………………………...6 ZARA………………………………………………………………………………….

    Show More
  • Zara
    1262 words | 6 pages

    Executive Summary: Zara is one the leading fashion having a substantial sale of Euro 8088 million in 2010. There are many factors which have led to such a substantial growth for the company some of which are analyzed in the subsequent discussion. Some of them are capability to release in-season fashion in 50% less time than competitors. The central distribution model and efficiency in supply chain has contributed to this immense success. Once the stores are opened outside Spain this is the biggest….

    Show More
  • Zara
    14841 words | 60 pages

    STRATEGIC MANAGEMENT PAPER ZARA Created By: Anggita Sulisetiasih 1006718706 Kenji Wibawa Junardy 1006718990 Patricia M. A. Adam 1006805694 International Undergraduate Program Faculty of Economics University of Indonesia Depok 2013 TABLE OF CONTENTS Chapter 1 4 INTRODUCTION 4 1.1. Company Background 4 1.2. Vision and Mission 4 1.3. Long-term Objectives 5 Chapter 2 6 VISION – MISSION ANALYSIS 6 2.1. Importance (Benefits) of Vision and Mission Statements 6….

    Show More
  • Information Technology
    2060 words | 9 pages

    relate to the way Zara runs its business. What types of systems are the most essential for this company in its current environment? In this new era of globalization, the using of technology has been very common and can be conclude as part of human’s life. In order to survive in today’s challenging business world, every organization has to be confronted with highly competitive pressure to bring out more effectiveness and efficiency when running a business. This case study is about Zara, large international….

    Show More
  • Zara Case
    3846 words | 16 pages

    overall markdown percentage of Zara was much smaller than other competitors. Other than the markdown percentage, less advertising also gives Zara a big advantage over the others. Zara usually limits the advertising to only at the start of the sales period at the end of the season. All new items and new designs were first displayed and arrived in its major stores in each twice-weekly shipment. So the customers of Zara always know when will the new designs come. As a result, Zara doesn’t need to advertise….

    Show More
  • The History of the Fashion Store Zara
    2179 words | 9 pages

    largest fashion distributors, has eight major sales formats - Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home y Kiddy's Class- with 3.147 stores in 70 countries around the world. Inditex Group is comprised of over one hundred companies associated in textile design, manufacturing and distribution. The achievements of the company and the uniqueness of its management model, which is based on innovation and flexibility, made Inditex one of the largest fashion distribution….

    Show More
  • Zara Business Strategy
    1644 words | 7 pages

    ZARA - zara owned by inditex; posted net income eur340m on revs eur3.250m in 2001 - inditex ipo may 2001; oversubscribed; stock increased by over 50% - 76% of equity value implied stock price was based on future growth expectations (higher than an estimated 69% for WMT) - global apparel chain; buyer driven global chain - branded marketers and manufacturers served as brokers in linking overseas factories with markets - production; very fragmented (individual apparel firms on avg employed a few….

    Show More
  • Le Chateau Analysis
    1958 words | 8 pages

    Table of Contents 1. Introduction 1 2. Company’s Current Strategy 1 2.1. Vision 1 2.2. Mission 1 2.3. Objectives 1 2.4. Corporate level strategy 1 2.5. Business level strategy 1 3. Evaluation of Current Strategy Performance 2 3.1. Competitive performance 2 3.2. Financial performance 2 4. External Analysis 3 4.1. General external environment 3 4.2. Industry situation analysis 4 4.2.1. Industry structure 4 4.2.2. Industry directions and trends 4 4.3.….

    Show More

Popular Essays