Essay about Zara Business Strategy - 1637 Words

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 dozen ppl) - about 30% of apparel production was exported (developing countries had very large share, nearly 50% of all exports)...cheaper labor + inputs - proximity also important bc it reduced shipping costs - china was export powerhouse†¦show more content†¦all 3 had narrower vertical scope than zara (cara owned much of its production and most of its stores) vs gap, hamp;m who owned most stores but outsourced all production vs benetton invested heavily in production but licensees ran its stores. - Zara; global specialty retailer that designed, manufactured, and sold apparel, footwear, accessories for men, women, children around the world; sold medium quality fashion clothing at affordable prices - beginning 2002 inditex operated 6 separate chains; each chain operated independently and was responsible for its own strategy, product design, sourcing and manufacturing, distribution, image, personal, financial results - zara business system: design --gt; sourcing and manufacturing --gt; distribution --gt; retailing - products shipped directly from distribution centers twice a week (eliminated need for warehouses and kept inventories low) - eliminate bullwhip effect (the tendency for fluctuations in final demand to get amplified as they were transmitted back up the supply chain) - short cycle time reduced working capital intensity - comditel, 100% owned subsidiary of inditex, was responsible for fabric - zara had its own distribution system; all of zaras merchandise passed through there (whether it was from internal or external suppliers) - zara only spent 0.3% of revs on media advertising vs competitiors 3-4% - created climate of scarcity and opportunity by changing styles/offerings so frequentlyShow MoreRelatedZara s Business Level Strategy Essay2094 Words   |  9 Pagesgeographical areas of its presence in the first half of 2016 (Inditex, 2016c). The flagship brand of Inditex, Zara, has contributed to that growth with â‚ ¬13.628 million net sales through its 2162 stores and its online presence in 27 markets (Inditex, 2016a) In an environment exposed to consequences of global changes in raw material prices, labour costs and rapidly improving technology, Inditex and Zara have been operating with significant and steady success through the past decades. This essay will analyseRead MoreBusiness Strategy Comparison: Zara and HandM2280 Words   |  10 PagesNamita S Rai TOPIC-WOMEN GARMENTS THE TWO MAJOR GLOBAL PLAYERS- ZARA AND Hamp;M PRODUCT-T-SHIRT COUNTRY- UK Zara History of Zara Marked as the first prestigious venture of the Inditex group the first store of Zara, the chain of Spanish fashion stores came into reality on central A Coruna Street in 1975. In 1985, Amancio Ortega integrated Zara in a new holding company, Industria de Diseno Textil, INDITEX S.A. The Zara fashion concept was well received by the public later in 1976, allowingRead MoreZara International Case Study1000 Words   |  4 PagesZara International was a retail shop originated in La Coruna, Spain in 1975. It was clothing and accessories shop and imitated the latest fashion trends and sold them at a lower cost. It became Zara International after entering Portugal in 1988 and then the United States and France in the 1990s. The distributor for this brand is Inditex and is considered the most successful retail chain in the world. Zara has a business strategy that is very different from the retailers nowadays. If a customer ordersRead MoreZara Case Study986 Words   |  4 PagesZara is the flagship brand of the Spanish retail group, Inditex SA, one of the super-heated performers in a soft retail market in recent years. When Indtiex offered a 23 percent stake to the public in 2001, the issue was over-subscribed 26 times raising Euro2.1 billion for the company. Zara is unique model in business world today it has its own principles which may varies from its competitors in the same industry starting from production strategy ending with supply chain management strategy, theseRead MoreZara - Marketing Research1034 Words   |  5 PagesTask 1 zara marketing research Zara is a spanish chain store in Inditex group, one of the worlds biggest retail store in the world who are also owners of zara home. Zara is a fast industry bt its unique business model is based on innovation and flexibilty. they design and distribute a garment to the market in just 15 days. they always have new products but in limited supply. the customer feels there is an exclusitivity , since only a few items are on display even though stores are plannedRead MoreStrategy of Zara Burberry1298 Words   |  6 Pages| | | | [STRATEGY OF ZARA amp; BURBERRY] | | TABLE OF CONTENTS INTRODUCTION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.1 STRATEGIES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..1 CONCLUSION: COMPARISON ZARA VS BURBERRY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.4 REFERENCES.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦5 Introduction ABOUT ZARA†¦ Zara started operations in Spain in 1975, and now operates in 74 countries worldwide. Zara is one of the largest international fashion companies and it is owned by INDITEX, one of the world’s largest distributionRead MoreEssay on Zara Case1442 Words   |  6 PagesCase Questions: 1. How specifically do the distinctive features of Zara’s business model affect its operating economics? The main concepts that can be taken away from Zara’s business model, which directly affect its operating economics, is low cost, high control, and quick turnaround. Zara is just one of six retail stores operated by, Inditex, the parent company. Inditex owns Comditel, a subsidiary, which manages the dyeing, patterning, and finishing of gray fabric and supplied finishedRead MoreZara s Operation Strategy And How It Uses Technology Into Operations For Fast Communication Between Different Departments Essay1238 Words   |  5 Pages â€Æ' Executive Summary This report is about Zara’s operation strategy and how it uses technology in operations to get competitive advantage in the fashion market. Zara introduced information system in operations for fast communication between different departments. The company’s store managers directly convey customers feedback to head office through advanced information system. Once the information gets collected by head office, the designers start working on new designs and take immediate opinionsRead MoreZaras Case Study1373 Words   |  6 Pagesdoes 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 isRead MoreThe Retail Giant Of Zara Essay1351 Words   |  6 PagesThe retail giant Zara have proven that utilizing all resources and different management techniques branded the store as a fashion empire. However, Zara has been named one of the most profitable retailers in the world. Zara has expanded and is operating stores all over the world which makes the retailer global. The philosophy behind the retail giant is immersing new fashion fast. Furthermore, Zara focus is producing high-end quality clothes through creativity. The retail giant uses a rapid response