This website uses cookies to ensure you have the best experience. Learn more

Zara Essay

358 words - 2 pages

The main objective of their marketing activities is to react swiftly: Zara is able to design, produce and deliver the product to the customer in just one month. The main reason for this is that Zara does not forecast the designed clothing. Fabrics and garments are the only materials to be purchased on the basis of forecasts. Their main strength is to capture real-time information on the shop floor and develop designs on the basis of this information: so-called ‘commercial managers’ conceptualize the type of garments and the kind of fabric it will be made off. ...view middle of the document...

Also, Zara does not invest in expensive commercials or campaigns. Most of Zara’s marketing budget is spent on information technology and communications to keep ahead of day-to-day trend information. This gives the supply chain flexibility and a competitive advantage.
Another important differentiator is that Zara puts more emphasis on offering different styles rather then increasing the volume per item. The flexible supply chain can produce quickly enough, so large numbers in stock does not add value. Their suppliers are found in Spain, India and Morocco. This enables Zara to switch between suppliers when performances are lacking or due to external market conditions.
A high level of vertical integration (including independent companies) exists in the supply chain of Zara. All product development and (final)production facilities are kept in-house: dying and processing activities of fabrics are fully controlled (not out-sourced). Non-strategic activities are fully outsourced and the actual ‘assembly’ processes of pieces are fully outsourced. Since all the necessary raw materials are present when market data is received, the fabrics can be translated into super-fast end products. As a preliminary conclusion, the ZARA case indicates the agility and adaptability aspects of flexibility in
SCM.

Other Papers Like Zara

Zara Case Essay

1081 words - 5 pages 1. Zara was developed with the initial goal to link customer demand to manufacturing, and link manufacturing to distribution. Goals such as short production times, decreased inventory risk, and great choice of clothes have helped formulate a unique value and shape Zara’s current business model. Zara’s business model is based on three aspects: * Zara’s fundamental concept is to maintain design, production, and distribution processes that

Zara Success Essay

2083 words - 9 pages Arab Open University Faculty of Business Studies Business Functions in Context I B203A -- Second Semester 2015-2016 Tutor Marked Assessment Managing Marketing Channels: Zara | One global retailer is expanding at a dizzying pace. It's on track for what appears to be world domination of its industry. Having built its own state-of-the art distribution network, the company is leaving the competition in the dust in terms of sales and

Zara Recommendations

809 words - 4 pages Recommendations: (1) Zara has the potential for sustainable growth due to their unique business model and operation strategies which enables them to face the challenges of the apparel industry. By using special entry strategies they can exploit untapped markets such as Germany and Eastern Europe (Goransson.S et al,2007). As their centralized distribution system located in Spain, it will be easy for the company to support its existing system

Zara Swot

2260 words - 10 pages and performed in different ways torival chains (Bradley, 2003). This paper will discuss the logistics, marketing channel and supply chain of an International clothing company – Zara. The company was chosen because of its unique and innovative distribution channel andsupply chain management. Company Background In 1963, Amancio Ortega started a small company in Spain that manufactured women’s pajamas and lingerie products for garment

Zara IT

1341 words - 6 pages Zara: IT for fast fashionZara business cultureTwo words summarize Zara's competitive advantage: Fast & Efficient. Zara's first CEO José María Castellano Ríos established a clear business idea that represents every effort Zara's management exerts today: "Link customer demand to manufacturing, and link manufacturing with distribution." In a basic sense Mr. Castellano wanted his every critical element from Zara's Supply

Zara Case

5848 words - 24 pages the middle where Homelite is strong. So in 1983, Homelite has the highest market share in the industry. Luck or patient capital? You choose. Synopsis of Zara Zara gives us an opportunity to show how boundary decisions tie the firm’s factor (supplier) and product markets together. Vertical integration and outsourcing are part of strategy execution; they involve questions of control and competence (productivity). But to understand control, we

The Strategy of Zara

2144 words - 9 pages The Strategy of ZARA Prepared by Frank Li 090107 Jilin University---Lambton College May 13, 2013 Prepared for Program Committee Northwood University/ Jilin University---Lambton College Letter of Transmittal Room 612, Qianjin Street, Changchun City, Jilin Province, 130000, P. R. China. May 13, 2013 Program Committee Northwood University/JULC 4000 Whiting Drive Midland, MI, U.S.A. 48640-2398 Dear

Zara, Success Story

908 words - 4 pages Assignment “ZARA” 1.Zara designs majority of it cloth in Spain (about 80 percent). It focuses on shorter response time enabling it to meet the constantly shifting fashion trends. However such moves do not take months, but this process is complete within in 30 days; during which Zara identifies the latest trends, design it clothes and supply material to its

ZARA: Fast Fashion

4518 words - 19 pages Group 14:Suo Lu 7430327Sourav Rahman 7354338Syed Ammar Qaiser 7593115Imran Afza Khan 7116907Muhammad Mohsin Virk 7591000Qasim Qayyum 7587417EMP 5100Introduction to Engineering Management1I. Executive SummaryInditex, founded by Amancio Ortega, operates six different chains: Zara, Massimo Dutti, Pull&Bear, Bershka, Stradivarius, and Oysho. Each chain addressed different segments of the market, but all share the same goal: to dominate their

Pestle Analysis of Zara

1902 words - 8 pages technologies have allowed consumers to have more access to fashion. As a result, consumers are changing, competition is fierce, and companies are evolving to meet these demands. Zara, a Spanish-based chain owned by Inditex, is a retailer who has taken a new approach in the industry. With their unique strategy, Zara has the competitive advantage to be sustainable. In order to maintain that advantage and growth they must confront certain challenges and

Zara Case Study

3584 words - 15 pages Zara: Fast Fashion Case Study IEOR 153 Logistics Network Design and Supply Chain Management Niko Katigbak Regine Labog Kevin Leung Ruoyun Li Miranda Ortiz Michelle Papilla Spring 2011 Professor Kaminsky UC Berkeley I. Background Inditex, founded by Amancio Ortega, operates six different chains: Zara, Massimo Dutti, Pull&Bear, Bershka, Stradivarius, and Oysho. Since 2006 when the case was written, Inditex has added Zara

Related Essays

Zara Case Essay

806 words - 4 pages   Zara is different from competitors in that it uses a vertically integrated model for its company. Therefore, the firm controls most of the activities in the supply chain. For instance, Zara relies on “local Spanish sourcing for a large proportion of garment manufacture.” The combination of the local garment manufacturers with Zara’s over 200 designers in house leads to a flexibility unrivaled in the high-end clothing industry. Zara

Case Zara Essay

874 words - 4 pages 
 NTERNATIONAL MARKETING ZARA: INDIVIDUAL ASSIGNMENT FACULTY OF ECONOMICS UNIVERSITY OF LJUBLJANA 1. What makes Zara different from other specialty apparel retailers? What are the main differences in the business models of Zara and H&M? One of the most important competitive advantages that Zara have is the rotation in the stores, Zara is constantly looking forward increase the rotation of products and the leadership in

Zara Fashion Essay

3795 words - 16 pages : | | ▪ Muhammad Rashedur Rahman (25-034) Zara Introduction: Zara is a spanish clothing and accessories retailer based in Arteixo, Galicia, and founded in 1975 by Amancio Ortega and Rosalía Mera. It is the flagship chain store of the Inditex group, The world's largest apparel retailer, the fashion group

Zara Case Essay 1399 Words

1399 words - 6 pages Waterloo Regional Police Services: The CIMS Project Background: The fashion industry that Zara plays in are intensively competing in fast market response and wide market coverage. Basically, since the target customers' tastes in fashion change rapidly, it is hard for industry players to not only accurately predict the trends but also put effective influences onto customers. As a result, industry players are trying their best to quickly