...world's largest fashion retailers by owning eight brands - Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque. There are over 6,700 stores worldwide. It is started as textiles maker by Amancio Ortega Gaona in a small workshop back in 1963. After 12 years, Inditex is official a dressmaker when the first Zara store is established in 1975, located in La Coruña, Spain. The main goal of Inditex is to offer highest quality products to all its customers. All Inditex processes are following their code of conduct where 4 main principle is applied. There are clear to wear and safe to wear, tested to wear, green to wear and right to wear. These are the foundations of the Group's environmental and sustainable strategy. To ensure the stability of the global operation, Inditex has 11 logistics centre for each of the brands to make sure the merchandise are distributed twice a week. There are new designs are coming out once a fortnight in Inditex. It is also one of the company that practicing fast fashion. In 2014, the net profit of Inditex had grown 5 percent to 2.5 billion euro (Spain. Inditex S.A.,2014). Inditex is maintaining the aggressive strategy in 2015. Alexander's (2015) article indicates that, Ortega's net worth hit $80 billion as stock in his holding company Industria de Diseno Textil (Inditex) reached an all-time high of 33.99 Euros per share. As mentioned above, the first Zara store is opened in La Coruña in 1975. In 2014, 64% of the...
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...Introduction 2 Marketing Mix 3 Website Audit 6 Situational Analysis 9 PEST Analysis 12 Competitive Analysis 13 Segmentation 14 Targeting 16 Differentiation & Positioning 17 Communication Tools & Manufacturing Policy 18 Objectives 19 E-marketing Tactics (7 C’s) 20 E-Marketing Strategy 23 Action plan 25 Evaluation plan 26 References 28 Appendix 31 Task Allocation 32 Introduction Founded by Spanish retail group, Intidex, in mid-70, Zara is the flagship brand for the house. Zara is high-street fashion brand that is based on in terms of product quality, affordability, fashion trends and customer satisfaction. Zara's Unique Selling Proposition (USP) is to create or imitate the latest trends within a short two-week period. Intidex, (2010) High-fashion/low-cost brand message is really appreciated by customers all over the world. (Source: armschool.com) Marketing Mix The Marketing Mix, also known as the 4P’s of Marketing, is the combination of four elements: product, price, place, and promotion. (Hines & Bruce, Fashion Marketing) Product Zara produces high-fashion clothes for women, men, and children and sells it for the low cost. It has a rapid design changes. Zara offers more choices in more current fashions and it delivers merchandise to its stores twice a week. Small batch production leads to impulsive buying among customers and makes clothes scarcity. Shehzade, (2009) Zara is a remarkable for coming up with a new product and...
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...ld. In 2012, the company had an increase in revenues of 2% to £9.9billion. (Marks & Spencer Group 2012) This essay will carry out a company analysis by firstly presenting the key development of M&S and then a SWOT analysis. Finally, several recommendations will be made. Key development M&S was found in 1894 by Michael Marks and Tom Spencer in Leeds. Due to innovative management approaches and quality products, the company expanded quickly and became a public limited company in 1926. By the 1980s, it had been the largest retailer in Britain with more than 260 stores. However, by 1990s, the company had been facing fierce competition, and also its market share in clothing and food dropped dramatically. Moreover, its rigid and out-of-touch management brought M&S into a dangerous situation by the end of 1990s. Its share price tumbled by 4 times from over £0.800 to £0.2 per share in the period between 1998 and 2002. (Yahoo! Finance, 2012) Strengths After experiencing a difficult time, M&S remains as one of the largest clothing retailers in the UK with more than 10% market share in both womenswear and menswear. (Marks & Spencer Group 2012) This strong customer base may be brought buy its superior in-store services and quality clothing. According to the Institute of Customer Service (2011), M&S ranked second for UK Customer Satisfaction Index in non-food retail sector....
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...ZARA’S OPERATIONS STATEGY, A CRITIQUE OF A BUSINESS CASE. 1.Excecutive summary. Operations management is in regard to all operations within the organization responsible for creating goods and services that organizations pass to their customers. This function is at the heart of all organizations, giving the means of achieving their aims and reason for their existence. These activities include: managing purchases, inventory control, quality control, storage and logistics. A great deal of focus in operations is on efficiency and effectiveness of such a process. An example of successful operations strategy in the retail industry is the strategy employed by Zara which is discussed in this critique. Zara started as a single shop in La Coruna and then rapidly spread its wings to 68 countries; opening a store each day - one of the fastest global expansions the world has ever seen. Throughout the entire system of Zara’s business; designing, sourcing, manufacturing, distribution process and retailing come out a number of success factors: short cycle time, small batches per product, extensive variety of product every season and heavy investment in information and technology. This elements feature in every aspect of the business. 2. Introduction. Zara is the flagship brand of the Spanish fashion retail giant, Inditex, (Industrias de Deseno Texti S. A.) Founded in 1975 ; this super- heated performers in soft retail fashion market in recent years; is engaged in textile design, manufacturing...
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...Executive Summary The purpose of this document is to discuss the issue of Zara’s DOS-based IT infrastructure and how it affects Zara’s performance. The concern is the current system is out of date and there is a possibility that hardware vendors will upgrade their machines leaving them incompatible with DOS. As well, Zara’s core business model is speed and responsiveness, this system is unable to keep up with this model. By assessing the pros and cons of the new IT system, with Zara’s brand image, I determined that implementing the new operating system and POS terminals is beneficial for Zara because 1. It will help to improve efficiency of information flow between Zara’s supply chain networks, 2. It removes the risk of the system becoming obsolete and no longer compatible with vendor’s machine upgrade, and 3. The new system will eliminate the need for small screen PDAs and their continuous upgrades. Issue Identification Immediate Issues - The current DOS system has not been supported by Microsoft since 2003. - Personal digital assistants (PDAs) have small screens and make it time consuming for managers to do daily tasks such as orders and returns. - The screens on the PDAs are small, therefore making it difficult to view new items. - The availability of several PDAs at each store location allows for redundancy at time of ordering. - The POS terminals and PDAs contain no information about theoretical inventory within each store. Systemic Issues - Hardware...
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...Fashion Industry Analysis From the Perspective of Business Model Dynamics Author: Lisa Gockeln University of Twente P.O. Box 217, 7500AE Enschede The Netherlands ABSTRACT The fashion industry is a dynamic and volatile place, continuously exposed to macro-environmental factors that trigger fashion business models to change. The fast fashion model is currently at the forefront of the apparel market casting questions on whether its underlying philosophy is about to change as well. Therefore, the purpose of this study is to identify external drivers that might lead to such dynamic changes in the fast fashion model. Moreover, it will be investigated whether these may allude to a possible convergence to the newly emerged slow fashion model which is currently trying to penetrate the fashion market. The international retailer Zara has served as fast fashion representative for this analysis and has been examined for business model adjustments, which might have been triggered by macroenvironmental factors. It was found that especially social, environmental and technological factors have influenced developments in the fast fashion model and that it has indeed adopted slow fashion principles in some of its building blocks to respond to such emerging trends. The future of the fashion industry appears to be tailored by such externalities, continuously reshaping the fast fashion model to eventually arrive at a version that brings a long-lasting competitive edge. However...
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...iers are smothering employees. […] In Morocco, where Cortefiel, Inditex (Zara), Mango and Induyco (El Corte Inglés) manufacture their products, a Tangier based textile factory sold a pair of slacks to large Spanish retailers for 3.3 euros three years ago; today, the same item sells for 2 euros. Female factory workers work 12 to 16 hours a day during the high season, because orders from Spain demand six ‐ day delivery terms in order to suit shop window change schedules.” (El País Newspaper, “Mujeres en Aprietos”, 10 ‐ 02 ‐ 2004) towards process outsourcing that responded to its characteristic labor ‐ intensive production and current competitive pressures for cost reduction and flexibility. Sector companies had been forced to redesign their business strategies, focusing on performance measurement, new competence and skill development, product quality improvements and more strategically oriented human resources management. Yet, this new strategic focus entailed unprecedented risks, especially as regards labor practices, environmental care and unfair competition. As multinational companies embarked on this process, multilateral agencies and global NGOs had begun to look into and report on wrongful practices by large corporations, significantly calling the attention of increasingly sensitive and aware consumers and customers. Global society was urging apparel industry players to adopt a more responsible attitude to be embraced by their ...
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...International Journal of e-Education, e-Business, e-Management and e-Learning, Vol. 1, No. 3, August 2011 Case Study of Online Retailing Fast Fashion Industry Wei Zhenxiang and Zhou Lijie Abstract—The study investigates into the fast fashion industry worldwide, specifically on Zara, H&M and UNIQLO with respect to efficient supply chain management, scarce value creation, low costs promotions and positioning strategy, supported by comparisons between several typical well-known fast fashion brands. Through the overall analysis of B2C apparel online retailing in China, statistics show an enormous space for online retailing fast fashion industry to explore but a far way to catch up with the leading enterprises in the world in terms of e-commerce scale. The next main part demonstrates a case of a Chinese fast fashion online retailer-Vancl, analyzing its keys to success in aspects of proper product positioning, brand positioning, business mode, marketing strategy, products and services, user experience, logistics and team management. In addition, relevant suggestions for further prosperity are proposed in the end of the paper. Index Terms—fast fashion industry, e-commerce, B2C, online retailing retailers to acknowledge that designs move from catwalk to store in the fastest time to capture current trends in the market. The apparel products are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower...
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...INTERNATIONALISATION OF THE SPANISH FASHION BRAND ZARA Carmen Lopez Ying Fan Brunel Business School Journal of Fashion Marketing and Management (2009), 13:2, 279-296 INTRODUCTION Zara is one of the world’s most successful fashion retailers operating in 59 countries. However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap. The global textile and clothing industry The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004). This...
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...INTERNATIONALISATION OF THE SPANISH FASHION BRAND ZARA Carmen Lopez Ying Fan Brunel Business School Journal of Fashion Marketing and Management (2009), 13:2, 279-296 INTRODUCTION Zara is one of the world’s most successful fashion retailers operating in 59 countries. However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap. The global textile and clothing industry The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004). This...
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...Títol: Benetton and Zara information systems:a comparative analysis Volum:I de I Alumne: Chiara Pirone Director/Ponent:Jose M.Cabré Garcia Departament:Organización de Empresas Data: 28 Junio 2010 DADES DEL PROJECTE Títol del Projecte:Benetton and Zara information systems:a comparative analysis Nom de l'estudiant:Chiara Pirone Titulació:Ingenieria superior Informatica Crèdits: 37.5 Director/Ponent:Jose M.Cabré Garcia Departament:Organización de Empresas MEMBRES DEL TRIBUNAL President:Ferran Sabate Carriga Toma de decisiones y gestión de proyectos empresariales(PDGPE) Vocal:Francesc Tiñena Salvañà Compresion de datos e imagen (CDI) Secretari:Jose M. Cabré Garcia Empresa y entorno economico(EEE) QUALIFICACIÓ Qualificació numèrica: Qualificació descriptiva: Data: INDEX CHAPTER 1: INTRODUCTION CHAPTER 2: VERTICAL INTEGRATION 2.1. VERTICAL INTEGRATION 2.2: THE THREE A’S OF A SUPPLY CHAIN EXCELLENCE 2.2.1: AGILITY 2.2.2: ADAPTABILITY 2.2.3: ALIGNMENT 2.3: PORTER’S ANALYSIS 2.4: EXAMPLES: WAL-MART AND DELL CHAPTER 3: THE SYSTEM LOCK-IN 3.1 THE DELTA MODEL 3.2: THE SYSTEM LOCK-IN 3.3: EXAMPLE: FORD MOTOR CO 3.3.1: FORD MOTOR CO LOCK-IN CHAPTER 4 : ZARA 4.1 ZARA’S HISTORY 4.2 BUSINESS MODEL 4.2.1: PORTER’S ANALYSIS ON ZARA 4.2.2 PRODUCT LIFE CYCLE CURVE 7 9 9 13 15 16 17 19 30 36 36 39 41 42 45 45 47 47 49 1 4.2.3: KEY FACTORS OF SUCCESS 4.2.4: STRATEGIC DRAWBACKS 4.2.5: LOGISTICS AND SUPPLY CHAIN 4.2.6: STRATEGY 4.2.7: OPPORTUNITIES 4.3 THE MATHEMATICAL...
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...REV: DECEMBER 21, 2006 PANKAJ GHEMAWAT JOSÉ LUIS NUENO ZARA: Fast Fashion Fashion is the imitation of a given example and satisfies the demand for social adaptation. . . . The more an article becomes subject to rapid changes of fashion, the greater the demand for cheap products of its kind. — Georg Simmel, “Fashion” (1904) Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by posting net income of € 340 million on € revenues of € 3,250 million in its fiscal year 2001 (ending January 31, 2002). Inditex had had a heavily € oversubscribed Initial Public Offering in May 2001. Over the next 12 months, its stock price increased by nearly 50%—despite bearish stock market conditions—to push its market valuation to € 13.4 € billion. The high stock price made Inditex’s founder, Amancio Ortega, who had begun to work in the apparel trade as an errand boy half a century earlier, Spain’s richest man. However, it also implied a significant growth challenge. Based on one set of calculations, for example, 76% of the equity value implicit in Inditex’s stock price was based on expectations of future growth—higher than an estimated 69% for Wal-Mart or, for that matter, other high-performing retailers.1 The next section of this case briefly describes the structure of the global apparel chain, from producers to final customers. The section that follows profiles three of Inditex’s leading...
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...MARKS & SPENCER | | | | | | | | TABLE OF CONTENTS EXECUTIVE SUMMARY 3 INTRODUCTION 4 OBSERVATORY RESEARCH AT M&S 6 THE PROCESS DESIGN AT MARKS & SPENCER 6 PROCESS MAPPING 6 THROUGHPUT EFFICIENCY 10 THE LAYOUT OF THE STORE 12 ISSUE ARISING FROM CUSTOMERS’ SURVEY: THE STORE LAYOUT 12 M&S STORE LAYOUT IN BRIGHTON – A FUNCTIONAL LAYOUT 13 DISTANCE TRAVELLED IN M&S BRIGHTON 15 WHAT IF THE LAYOUT WAS CHANGED? 18 RECOMMENDATION 20 IMPLENMENTATION PLAN 21 BIBLIOGRAPHY 23 APPENDIX 1: 25 APPENDIX 2: 26 APPENDIX 3: 35 APPENDIX 4: 38 APPENDIX 5: 40 EXECUTIVE SUMMARY This report examines the daily Operations Management at Marks and Spencer (M&S) Brighton. Due to the poor performance of the clothing side, the company’s revenue has decreased by 6.8% in the past three years while the other retailers have been enjoying increasing profitability levels (WEARDEN, G, 2013). In order to analyse the reason behind deteriorating sales, the report would use a number of Operation Management techniques and practical observation to investigate one of M&S’s stores located in Brighton with regard to its daily operations and store layout. While also suggesting recommendations and an implementation plan that could help M&S improve its performance and efficiency of its in-store operations. INTRODUCTION Mark and Spencer (M&S) is one of the UK’s leading retailers with over 731 stores across...
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...REV: DECEMBER 21, 2006 PANKAJ GHEMAWAT JOSÉ LUIS NUENO ZARA: Fast Fashion Fashion is the imitation of a given example and satisfies the demand for social adaptation. . . . The more an article becomes subject to rapid changes of fashion, the greater the demand for cheap products of its kind. — Georg Simmel, “Fashion” (1904) Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by posting net income of € 340 million on € revenues of € 3,250 million in its fiscal year 2001 (ending January 31, 2002). Inditex had had a heavily € oversubscribed Initial Public Offering in May 2001. Over the next 12 months, its stock price increased by nearly 50%—despite bearish stock market conditions—to push its market valuation to € 13.4 € billion. The high stock price made Inditex’s founder, Amancio Ortega, who had begun to work in the apparel trade as an errand boy half a century earlier, Spain’s richest man. However, it also implied a significant growth challenge. Based on one set of calculations, for example, 76% of the equity value implicit in Inditex’s stock price was based on expectations of future growth—higher than an estimated 69% for Wal-Mart or, for that matter, other high-performing retailers.1 The next section of this case briefly describes the structure of the global apparel chain, from producers to final customers. The section that follows profiles three of Inditex’s leading...
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...Introduction: What really is CAROLL 03 Main Body of the Report 04 The 3V’s Analysis 04 The Value Chain Analysis 04 The SWOT Analysis 05 The Positioning Matrix 05 Boston Box Matrix 06 Chinese Market Audit 07 Ansoff Matrix 08 Porter’s 5 forces 08 Chinese Customers 09 Chinese Competitors 10 My Strategy 11 More explanation 12 Conclusion 12 Recommendations 13 Bibliography 14 Executive Summary: The aim of this paper is to talk about a French fashion house which is named Caroll, that’s why we will study the company by internal and external audit. What is she doing now how she is doing it? Then, we have to try entering the Chinese market with a study of China’s risks, Chinese habits, competitors… all the market. Then we will try to build a strategy to help Caroll being on the textile market in China. My first part will talk about the current strategy of Caroll; what is the target of Caroll, competitors which market are focus… with some figures, analyses and personal point of view. Then we will take care of the Chinese market with a PESTEL analyze, 5’s forces of Porter, some matrices and tools to get a clearly view of China and specially the textile market. The last part of this study will concern the new marketing strategy to enter this market with a SWOT analysis and concrete action to be as efficient as possible. To...
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