...SOE11108 Sources of Competitive Advantage Assessment 1 Group Presentation PESTEL – Analysis [pic] Contents 1 Introduction 3 2 Overview 3 3 Business Environment 3 4 Political 4 5 Economic 4 6 Social 5 7 Technological 6 8 Environmental 6 9 Legislative 8 10 Conclusion 8 References 9 Introduction The global apparel market is a consumer-driven industry. Also, globalization and new 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 face traditional retailers in the apparel industry. So, now our group will analysis the PESTLE of Zara Company. (Lopez & Fan, 2009) Overview Zara is one of the largest international fashion companies and belongs to Inditex, which is one of the largest fashion retailers worldwide. Inditex operates in textile design, distribution and manufacturing. (Inditex, 2011 b) Zara operates in 78 countries worldwide with 1557 stores in the world’s largest cities. (Inditex, 2011 c) The company is founded in 1975 by Amancio Ortega, located in Spain and had in 2010 a net sale of 8.088 million of...
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...Article McKinsey Quarterly February 2015 mșįňįẅřǻĐ ŀǻťįģįĐ fǿ ǻřě ňǻ ňį șșěččųș đňǻřB By Jacques Bughin Čǿmpǻňįěș ǻđěpț ǻț ųșįňģ đįģįțǻŀ țǿǿŀș ǻŀǿňģ țħě čǿňșųměř đěčįșįǿň jǿųřňěỳ ǻřě ģǻįňįňģ ǻ șįżǻbŀě ŀěǻđ ǿvěř čǿmpěțįțǿřș. Ț ħě İňțěřňěț ħǻș běčǿmě ǻň įňđįșpěňșǻbŀě țǿǿŀ fǿř mǻřķěțěřș, ỳěț țħěřě ǻřě șțįŀŀ ģǻpș įň ųňđěřșțǻňđįňģ įțș řǿŀě įň șħǻpįňģ ħǿẅ čǿňșųměřș čħǿǿșě ǻmǿňģ břǻňđș. Ẅįțħ țħě ħěŀp ǿf ǻ pǿẅěřfųŀ đǻțǻ șěț, ẅě ħǻvě běěň șțųđỳįňģ țħě řěŀǻțįǿňșħįp běțẅěěň țħě ŀěvěŀ ǿf đįģįțįżǻțįǿň ǻčřǿșș țħě čǿňșųměř’ș đěčįșįǿň jǿųřňěỳ ǻňđ țħě ŀįķěŀįħǿǿđ țħǻț ǻ čǿňșųměř ẅįŀŀ șěŀěčț ǻ břǻňđ ǻfțěř čǿňșįđěřįňģ ǻňđ ěvǻŀųǻțįňģ įțș qųǻŀįțįěș. Ẅě čǿmpįŀěđ đǻțǻ ǿň 1,000 břǻňđș ǻčřǿșș ǻ ẅįđě řǻňģě ǿf přǿđųčț čǻțěģǿřįěș, čǿvěřįňģ 20,000 čǿňșųměř jǿųřňěỳș ǻňđ 100,000 țǿųčħpǿįňțș ǻŀǿňģ țħěm.1 Țħě řěșěǻřčħ pǻįňțș ǻ vįvįđ pįčțųřě ǿf țħě fǻčțǿřș įňvǿŀvěđ įň ǻ čǿňșųměř’ș pųřčħǻșě čħǿįčě (ǻŀșǿ ķňǿẅň ǻș břǻňđ čǿňvěřșįǿň). Ǿvěřǻŀŀ, țħě ŀǻňđșčǻpě ěxħįbįțș ẅħǻț ẅě ǻňđ ǿțħěřș čǻŀŀ Đįģįțǻŀ Đǻřẅįňįșm:2 Čǿmpěțįțįǿň ǻmǿňģ břǻňđș įș șțěǻđįŀỳ įňčřěǻșįňģ ǻș břǻňđįňģ čħǻňňěŀș ǻňđ měșșǻģěș přǿŀįfěřǻțě. Ǻș čǿňșųměřș běčǿmě mǿřě đįģįțǻŀŀỳ ěmpǿẅěřěđ, břǻňđ měșșǻģěș ŀǿșě țħěįř įmpǻčț, ǻňđ țħě ŀįķěŀįħǿǿđ ǿf čǿňvěřșįǿň, ǿň ǻvěřǻģě, đěčřěǻșěș. Țħě břǻňđș mǿșț ŀįķěŀỳ țǿ čǿňvěřț đįģįțǻŀŀỳ jǻđěđ čǿňșųměřș įňțǿ pųřčħǻșěřș ǿffěř țħě șțřǿňģěșț ǻřřǻỳ ǿf đįģįțǻŀ ěxpěřįěňčěș. Țħěșě șųččěșșfųŀ pŀǻỳěřș șěěm țǿ bě pųŀŀįňģ ǻẅǻỳ fřǿm ŀěșș řǿbųșț đįģįțǻŀ břǻňđș ǻňđ ģǻįňįňģ fųřțħěř mǿměňțųm ǻș țħěỳ bųįŀđ ųp...
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...Zara: IT for Fast Fashion This case is part of the course Managing in the Information Age (MIA) at Harvard Business School. [pic] Managing in Information Age IT Categories |IT Category |Definition |Example | |Function IT (FIT) |IT that assists execution of discrete function |Simulators | | |or task |Spreadsheets | | | |CAD/CAM software | | | |Statistical software | |Enterprise IT (EIT) |IT that integrates multiple functions by |Enterprise Resource Planning (ERP) systems | | |imposing new work structure |Supply chain management (SCM) systems | | | |Customer Relationship Management (CRM) systems | | | |Sourcing/procurement software ...
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...be the main target. Introduction: Introduction to Company: The global apparel market presently is a consumer-driven industry. Also,globalization and new technologies have allowed consumers to have more access tofashion and different varieties. As a result, consumers are changing, competition isfierce, and companies are evolving to meet these demands. Zara is the flagship chain store of Inditex Group owned by Spanish company tycoon Amancio Ortega, who also owns brands such as Massimo Dutti, Pull and Bear, Oysho, Uterqüe, Stradivarius and Bershka. The group is headquartered in A Coruña, Galicia, Spain, where the first Zara store opened in 1975. It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared with a six-month industry average, and launches around 10,000 new designs each year (ZARA, Business Week, 2006). Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. Zara...
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...Part 1: Executive Summary This case focuses on the Spanish retail giant, Inditex and how its largest retail chain Zara has been so successful through its simple business model of speed, flexibility, and high fashion. As of 2002, Inditex had six separate chains: Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho. Each chain operates independently and is responsible for its own strategy, product design, sourcing and manufacturing, distribution, retail. Zara is by far the largest, most profitable, and most internationalized of the chains. In 2003, Zara's CIO must decide whether to upgrade the retailer's IT infrastructure and capabilities. At the time of the case, the company relies on an out-of-date operating system for its store terminals and has no full-time network in place across stores. The problem to the company is to decide whether it has to upgrade the present system and by doing so, risking the reliability they have with the current system or to continue with the present DOS based system which will not be compatible for future changes or improvements. Part 2: Issues Identification In 2003, Salgado, head of IT for Inditex, must decide whether to upgrade their pilot retailer - Zara's IT infrastructure and capabilities. At the time of the case, the company relies on an out-of-date operating system MS-DOS for its store terminals and has no full-time network in place across stores. In the short term, the going MS-DOS based system seems to be working...
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...Introduction Zara is an international apparel company founded by Amancio Oretga, who opened the first store in La Coruna in 1975. Ortega was driven by the belief that retailing and manufacturing need to the closely linked. Inditex, a holding company for Zara, other retail chains and internally owned suppliers was formed in 1985. In the same year, Jose Maria Castellano Rios joined the company, bringing with him his experience at an IT manager and belief that computers were integral to the business model they wanted to create. The case study introduces us to two men, Xan Salgado Badas and Bruno Sanchez Ocampo, who are having a discussion about Zara’s POS (Point of Sales) system. Salgado is the head of IT for Inditex, and Sanchez is the technical lead for the POS system. The discussion between the two was to whether the POS system ought to be upgraded, instead of continuing to run on technology that is becoming increasingly outdated. A point that Salgado tries to argue for. Sanchez, on the other hand, argues that the POS systems are working well, and that there is no need for an upgrade that could be more of a headache. The case analysis begin with identification of stakeholders problems, goals and concerns, followed by identification of problems, then an analysis of alternative solutions and end with a summary of difficulties posed and relevance of recommended solutions. Stakeholder Problems, Goals and Concerns Salgado The two principal stakeholders in this particular case...
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...<3<3<3 FOR SULTANA DYALI <3<3<3 The recent improvement in technology has provided the world with high speed internet, wireless connection, and web-based collaboration tools like blogs, and wikis, and has as such created a "mass collaboration. People from all over the world are efficiently able to communicate and share ideas through the internet, or even conferences, without any geographical barriers. The power of social networks it beginning to permeate into business culture where many collaborative uses are being found including knowledge sharing and transfers. Here I thought of an idea that will improve business collaboration; this idea comes from the idea of Facebook, but in a professional manner. It’s a website similar to Facebook that’s uses the Internet as a common meeting and work space, and it will enable companies to raise their informations and their profile which will serve to identify these companies at their country and even at the international level. In this site we will know all about these companies such as name, financial capital, legal status, field of activity, workforce and skills working in these companies, projects carried, future plans and experiences. It is a way of coordinating different ideas from numerous people to generate a wide variety of knowledge. Collaboration in business can be found both inter- and intra-organization and ranges from the simplicity of a partnership and crowd funding to the complexity of a multinational...
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...return on investment. The case shows that The Gap outsourced more than 90% production while Zara has its own factories and half of its productions are kept in-house, which means The Gap has insufficient control over production and capital costs. That is to say, Inditex is much more profitable than The Gap and has a relatively better operating economics. Zara has several distinctive features in its business model that has affected its operating economics. Firstly, it manufactures most of its fashion sensitive products internally under a just-in-time manufacturing system. In order to control the manufacturing process and to allow information flow more smoothly, it centralizes its design and production facilities in its home office. It produces about 11,000 distinct items every year, compared with 2000- 4000 items for key competitors. They shipped these products twice a week to reduce its inventory holding costs. Its short cycle time reduces working capital intensity and facilitated continuous manufacture of new merchandize, even during the biannual sales periods. Also, under its unique information system, its designers can not only constantly contact with the stores, but also communicate waith store managers to get some subjective impressions of the fashion trends. Moreover, Zara sources fabric, other inputs, and finished products from external suppliers, especially China. This gives Zara a competitive advantage towards the costs of goods sold....
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...------------------------------------------------- ZARA: FAST – FASHION CUSTOMER SATISFACTION ANALYSIS USING IBM SPSS ------------------------------------------------- ZARA: FAST – FASHION CUSTOMER SATISFACTION ANALYSIS USING IBM SPSS MARKETING MANAGEMENT COMPANY PROJECT BY GROUP 8 ABHISHEK GUPTA BY GROUP 8 ABHISHEK GUPTA ABOUT INDITEX INDITEX is a Spanish multinational clothing company headquartered in Arteixo, Galicia, Spain. It is made up of almost a hundred companies dealing in activities related to textile design, production and distribution. Amancio Ortega, Spain's richest man, and the world's third richest man, is the founder and current largest shareholder. The current chairman of Inditex is Pablo Isla. Inditex operates over 5,500 stores worldwide and owns brands like Massimo Dutti, Bershka, Oysho, Pull and Bear, Zara, and Tempe and also a low cost brand Lefties. The majority of stores are corporate-owned Franchises are only conceded in countries where corporate properties cannot be foreign-owned. The group designs and manufactures almost everything by itself, and new designs are dispatched twice a week to Zara stores. Most manufacturing is now in low labor cost countries, mainly in Morocco, China, and Turkey, although much production continues in Spain and Portugal, particularly for its Zara brand. In addition, Inditex has a factory for shoe design, production and distribution in the town of Elche, on the Spanish Mediterranean coast. ABOUT ZARA Zara was founded in 1975 and...
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...Marketing CommunicationRoll No.: 56 | LIST OF CONTENTS | Topics | Page No | 1. | Why Zara? | 2 | 2.2.12.22.32.4 | OverviewBackgroundBeginningGlobal ExpansionsFinancials | 22222 | 3. | Brand Positioning | 3 | 4.4.14.24.34.4 | PEST AnalysisPoliticalEconomicSocio-CulturalTechnological | 33344 | 5.5.15.25.35.4 | SWOT AnalysisStrengthsWeaknessOpportunitiesThreats | 44556 | 6.6.16.26.3 | Business Strategies5 P’s of MarketingPorter Five Force analysisMaslow’s Hierarchy | 77810 | 7. | Recommendations | 11 | 1. WHY ZARA? “People will stare, make it worthwhile”. According to me this is the most apt quote for fashion, clothing. Designer clothes are meant for this sole purpose only and yes, the feel good factor follows. I had dreamt of becoming a fashioner designer during my school days. But due to social stigma I ended up being an engineer and now an mba aspirant. So now instead of designing clothes, I’m studying what makes clothing brand a successful brand. From childhood, I have been a brand hungry person and this has developed a curiosity in me as to how and what makes me want these brands. There are many clothing brands which I have been loyal to but for my individual assignment I have chosen Zara, as it is the new sensation in the market. Being a shopaholic my self I love the brand as they really have a great collection. 2. OVERVIEW 2.1 Background Zara is a flagship brand of the Spanish retail group, Inditex group. Inditex is the world's largest...
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...Case study: Zara, Fast Fashion from Savvy Systems Introduction The poor, ship-building town of La Coruña in northern Spain seems an unlikely home to a tech-charged innovator in the decidedly ungeeky fashion industry, but that’s where you’ll find “The Cube,” the gleaming, futuristic central command of the Inditex Corporation (Industrias de Diseño Textil), parent of game-changing clothes giant, Zara. The blend of technologyenabled strategy that Zara has unleashed seems to break all of the rules in the fashion industry. The firm shuns advertising and rarely runs sales. Also, in an industry where nearly every major player outsources manufacturing to low-cost countries, Zara is highly vertically integrated, keeping huge swaths of its production process in-house. These counterintuitive moves are part of a recipe for success that’s beating the pants off the competition, and it has turned the founder of Inditex, Amancio Ortega, into Spain’s wealthiest man and the world’s richest fashion executive. Figure 3.1. Zara’s operations are concentrated in Spain, but they have stores around the world like these in Manhattan and Shanghai. The firm tripled in size between 1996 and 2000, then its earnings skyrocketed from $2.43 billion in 2001 to $13.6 billion in 2007. By August 2008, sales edged ahead of Gap, making Inditex the world’s largest fashion retailer.[1] Table 3.1 compares the two fashion retailers. While Inditex supports eight brands, Zara is unquestionably the firm’s...
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...Products and Services 3 SWOT Analysis 3 Competitive Analysis 4 Competitive Advantages 5 Sustainability 5 Recommendations 5 New Product/Service 5 Marketing Strategy 6 Conclusion 7 References 8 Introduction This report is mainly focusing on studies of marketing strategy. By analyzing and discussing the case of Zara, we will be able to have a more in depth analysis of companies and their marketing strategies. In the background section, basic knowledge of marketing strategy will be introduced. In the discussion section, an analysis of Zara’s existing product and service will be listed and an S.W.O.T. analysis is done to figure out the company’s current situation and position in the marketplace. In the recommendation section, a new product/service will be recommended to augment Zara’s brand. Also a marketing strategy will be suggested to improve Zara’s business. Background Firstly, some commonly used terms and their definitions will be introduced in this report in order to provide some basic knowledge and understandings of the principles and studies about marketing strategy planning. SWOT Analysis: This is a strategic planning method which used to evaluate the strength, weakness, opportunities and threats of an organization involved in a certain business. (Friend, Graham. 2009) Competitive Analysis: This is an analysis of the organization’s strength and weakness...
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...Running head: Zara Case Paper Analysis 1 Zara: IT for Fast Fashion Case Analysis Sonal Bhagwat University of Houston-Victoria MGMT 6352-2011FA-25125 November 2011 Zara Case Paper Analysis Table of Contents: • • • • o • • • 2 Abstract Case Description Goals and Strategy Speed and Decision-making Marketing, Merchandising, and Advertising Information Technology Problem Analysis Firm-based-value chain model Model Application Implementation Opportunity Analysis Evaluation of IS Implementation Tangible Costs Analysis Tangible Benefits Intangible Costs Analysis Intangible Benefits Conclusion for Evaluation of IT Implementation Conclusion and Recommendations References 3 4 5 5 6 6 7 7 7 9 12 12 13 14 15 16 16 19 Zara Case Paper Analysis Abstract This case paper presents the business analysis of Zara, the leading and the profitable brand of Inditex. The case paper’s objective is to discuss whether to update the current DOS/IT infrastructure and evaluate the effects of the upgrade. By using the Michael Porter’s value chain analysis, we can understand Zara’s core business model of vertical integration and assess the areas where IS will add value to the system. The case paper also presents the IS implementation opportunities and evaluating the effectiveness of the implementation. The case paper concludes by providing recommendations for updating the current OS along with its advantages. 3 Zara Case Paper Analysis Case Description Zara is one of the largest...
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...Zara Case Study Contents 1. Abstract 3 2. Current state 3 3. Problems with current state 4 4. Competitors 5 5. Target State 7 5.1. Considerations 8 6. IT strategy 9 7. Cost Analysis 11 8. Conclusion 11 1. Abstract Zara is one of the largest international fashion companies. It belongs to Inditex, a multinational retailer and manufacturer. At the beginning of 2003, Inditex operated 1,558 stores in 45 countries, of which nearly 550 were part of the Zara chain. The customer is at the heart of their unique business model. Quick and accurate response to shifting consumer demands is the goal of Zara. The main objective of this case paper is to analyze Zara’s current business model, focus on issues they are facing and provide solution to overcome them. This case analysis also provides Zara with suggestions for IT implementation along with its cost analysis and opportunities for further innovation in their business. This analysis gives Zara a pathway to transform from non-IT savvy firm to an IT Savvy firm and help them to be in competitive advantage. 2. Current state * Offline business Zara currently works only with stores and they do not offer online shopping for customers. The strategy to keep offline business working is to face customers with variety of cloths in different colors and designs and try to convince them buy new arrivals. Since the products inside stores change frequently, the chance of selling new products is very high...
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...ZARA: Fast Fashion A Written Analysis of the Case Presented to the Faculty of School of Business and Governance Ateneo de Davao University E. Jacinto Street,8000, Davao City In Partial Fulfillment of the Requirements for the Subject MGT 428: Production and Operations Management GODOY, EARL JOY A. SUARIO, LEI ANGELA D. TACADAO, VANESSA CAREM C. TAR, KESSIA CAROL D. TOREFIEL, CHRISTINE G. December 11, 2014 I. Executive Summary This paper presents the case analysis of Zara, the largest and most internationalized of Indetex’s chains. In 2001, it operated for more than 507 stores in countries around the world, including Spain. It is a Spanish clothing and accessories retailer based in Galicia, Spain; which is founded by Amancio Ortega and Rosalia Mera. The advantage of Zara is that in just a span of three weeks, it can have a new product on its shelves ready for their consumer to purchase compared to their competitors that required from three to, even, six months. Also, the first store opened in La Coruña proved to be a success, and Ortega saw the opportunity to expand to other cities around Spain and even cities around the world. Due to rapid expansion of Zara, they suffer loss which is supposedly evitable. Zara does not take into account the product demanded in a certain country. Zara should focused on careful interpretation of the demand in a certain country for them to know whether to expand or not...
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