Zaras Case Study - 1373 Words

1. What is Zara’s value Proposition? How does it differ from its Competitors? â€Å"Zara has pioneered leading-edge fashion clothes for budget minded young adults through a tightly integrated vertical structure that cuts delivery time between a garment’s design and retail delivery to under three weeks (against the industry norm of three to six months)† (Grant, 2010, p.212) According to Clayton Christensen in order to process you Value Proposition you must look at the following (Harvard Business Review) Zara’s value proposition is that it offers its customers cutting edge fashion at very affordable prices. It actively seeks out what styles are â€Å"hot† in the fashion world. After Zara has identified the latest trend it can have the†¦show more content†¦4. Marketing amp; Sales: Zara broad offering meets its customer’s demands quickly. This is due to management’s almost instantaneous response to changes in customers’ needs (Ghemawat et al, 2006). Zara’s prices consider the cost of exporting and market conditions of the store’s location (D’Andrea et al, 2003) instead of the traditional application a cost plus margin. Zaras inventory turnover is higher than their direct competition (at 10.67% versus Hamp;M at 6.84%) (D’Andrea et al, 2003). Constantly changing stock encourages sales and increase the average visits to stores per customer (Kotler et al, 2009). 5. Service: Traditional supply chains take a supplier centric/push view with a focus on what a business is trying to sell rather than a focus on customer’s demands (Kotler et al, 2009). Zara’s supply chain adopts a vertical structure which is mainly demand driven with cycle times being kept to a minimum which allows information to be acted upon quickly (Grant, 2011). Zara’s Supporting Activities (4) 1. Infrastructure Zara IT supports the interaction between the different departments throughout the entire company. 2. Human Resource Management (HRM) Zara focus on HRM is evident in their hiring of newly graduated designers with fresh ideas and energy from the local areas. 3. Technology HighlyShow MoreRelatedZaras supply chain: Case Study3833 Words   |  16 Pagesthe customer changes in clothing industry. Literatures review – The key success factors of the clothing industry are explained. Also the supply chain concepts related to the industry are developed (Agility, Quick Response and Lean) Analysis of Zara’s supply chain – The supply chain network of the company is analysed and each stage of the network is developed in details to see how the supply concepts are applied or not by the leader of the clothing industry (Zara) Future developments – The companyRead MoreCase Study : Zaras Success1299 Words   |  6 Pageseach day and known as one of the fastest growing fashion retailers in Europe. Zara’s entire business operations, designing, sourcing, manufacturing, distribution process and retailing, it gained a couple of successful factors that include: a short cycle time, small batches per product, extensive variety of product every season and heavy investment in information and technology. These elements feature in every aspect of Zara’s business activities and led to its successful operations. As other retailersRead MoreZara case study Essay2280 Words   |  10 Pagesï » ¿Coursework Header Sheet 209896-18 Course OPER1027: Operations Mngt: Proc/Value Ch Course School/Level BU/UG Coursework Case Study 1 Assessment Weight 25.00% Tutor J Whiteley Submission Deadline 25/11/2013 Coursework is receipted on the understanding that it is the students own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the UniversitysRead MoreEssay on The Fashion Industry: Zara1467 Words   |  6 Pagesthe needs of consumers while trying to acquire major merchandize turnover to retailers than local rivals. The Zara case study reported sales $8.15 billion to its competitors Hennes Mauritz 0f $7.87 billion (Dutta, 2002). This was the consumer’s one stop shop due to the quality products offered both globally and locally. This paper will focus on the fashion trend of the Zara case study. The paper will look at the varied roles that consumers play in the market and how the alter the market. From thisRead MoreHow Zara Generates Sustainable Competitive Advantage1680 Words   |  7 Pagesimmobility which states that it may be costly for firms without specific resources to acquire of develop them. (Barney, J 1991) Zara’s Core competencies Procurement Vertical Integrated Manufacturing As a result of vertical integration manufacturing and a dedicated in-house design team, Zara was able to originate a design and have finished goods in stores within 4-5 weeks in the case of entirely new designs, and two weeks for modification of existing products. In contrast, the tradition industry model mightRead MoreThe Marketing Strategy Of Zara1394 Words   |  6 Pagesmarketing strategy and brand development strategies of Zara. Company Background Zara is a Spanish chain store of Inditex Group, one of the world’s biggest retail store in the world. Founded by Amancio Ortega in 1975 in Spain, where its still home of Zara’s headquarters today. Its strategic marketing model has helped the company to grow to its current 2000 stores distributed across 88 countries of the world (Inditex, 2015). For its Australian debut in 2011, Zara opened a giant three level Sydney storeRead MoreFast Fashion Industry: Growth of Zara and Inditex Essay1532 Words   |  7 Pagesdistinguished for a fast fashion approach is Zara (Hayes Jones, 2006). Zara is a child company of the parent company Inditex. Zara stores have established the stride for merchants around the globe in creating and shipping fashionable clothing (â€Å"Case 3-4. Continued Growth for Zara and Inditex†, 2013). Their marketing approach has helped them become extremely successful in terms of providing the customer with. International marketing strategies and its efficiency assists in the expansion of ZaraRead MoreZara s Supply Chain Of Zara1300 Words   |  6 PagesZara’s Supply Chain Zara is characterized by its unique and rapid-fire supply chain that is governed by the vertically integrated system that links their shops, designers, and distribution system. The key players in this system are the wholesalers and retailers, so controlling the activities of those mark the success of the business. Zara’s system is so integrated that makes it hard for other competitors to nail the starting point of a similar product. In the Design Phase, 300 professional designersRead MoreZara Case Study : The Resource Based View1588 Words   |  7 PagesZARA Case Study Introduction The case study is upon on the resource based view. First, the firm resources were divided into three major parts: tangible resource, intangible resource and human resource as Grant suggested. The main body of the essay will also be divided into three parts according to the resource classification. Then, a VRIN test would be carried after listing different types of resources to inspect whether they are able to provide a sustainable competitive advantage for Zara. FinallyRead MoreZara Pos System Case Study Essay1324 Words   |  6 PagesCase Study: Zara: IT for Fashion Background Zara, high fashion clothing producer and retailer, opened its first store in Galicia, Spain in 1975, and by 2003, had grown to 550 stores worldwide. Zara is the largest holding of its mother company, Inditex, and is evaluating whether to invest in modernizing its IT infrastructure, specifically its in-store Point-of-Sale (POS) terminals which are running a DOS Operating System that is now EOL. Business Model Zara has a unique and very effective business