...of Content Summary 2 Introduction of Zara 2 Porter’s Six Forces model in Zara 3 Existing competitors 4 The bargaining power of suppliers 4 The bargaining power of customers 4 Potential competitors 5 Alternative products or services 5 The power of cooperative dealer 6 IT is the heart of ZARA mode 6 Track fashion with the information base 6 Information standardizing and optimizing design 7 Zara’s competitive advantage – based on value chain perspective 8 Design 8 Marketing 9 Conclusion 12 ZARA's Informational Rapid Response Mechanism and Fast Fashion Summary In recent years, with the unique marketing strategy, fast fashion apparel business has developed rapidly in the world. Some of enterprises engaged in the fast fashion business have obtained considerable sales and global business expansion, it can be said that fast fashion has been become one of the most valuable fields in the clothing industry, and carrying out fast fashion business has become an ideal choice for clothing enterprises to develop rapidly and create performance (Hayes & Jones, 2006). In this paper, it chose an international fast fashion clothing brand--ZARA of Spain, which is characterized on marketing and has won widely recognized worldwide, as the research object. Through the analysis of the brand's marketing strategy, it interprets the universal business model used the fast fashion clothing brand to do business. This paper adopts the method of case study, first makes...
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...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 new scenario has created opportunities for large exporters like China and India 2 that are considerably increasing their market share...
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...costumer fluctuating demands (Castellano, 2002). ii. Quick turnover of clothing inventory, fastest in the market (Nueno and Ghemawar, 2003; The Economist, 2005; Crawford, 2000) iii. Low spending on advertising (Nueno and Ghemawar, 2003) iv. Follow market-based pricing strategy (Gonzalez, E., et al, 2003) c. SWOT of Zara III. Comparison of Zara with H&M and GAP The huge competitors of Zara are GAP Inc. and H&M. This part will cover some of basic information of those two competitors and give some comparison with Zara. (Nueno and Ghemawat, 2003) (Palladino, 2010) IV. Thesis Statement To analyze the key factors which influence the Zara’s Internationalization and its success Analysis I. Internationalization a. Theory of Internationalization In this part, the researcher will discuss the theory of Internationalization and why it is important to go international (Rugman, 1981; Tumbull, 1985; Piercy, 1981). b. Implication on Zara i. Motives to go international In this part, researcher will give detail of the push and pull factors that influence Zara to go International (McGoldrick, 1995; McDougall and Oviatt, 1994; Salgado and Blanco, 2004). Push and Pull Factors of Zara Internationalization (McGoldrick,...
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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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...The case of Zara – The Postponement strategy I) Introduction In order to compete in the world of rising globalization and shortening of product life cycle nowadays, firms have to deal with the demand for increasing product variety to meet the diverse needs of customers. Mass customization has become a requirement for many businesses especially in the dynamic, fast-changing industries. However, the more product varieties, the more difficult it is to forecast demand, control inventory and manufacture. Therefore, some innovative companies have integrated “postponement” strategies with their supply chain operations to gain control of product variety proliferation. Zara is one of the most successful fast-fashion chains in the world, which is famous for its ability to keep itself up to date with fashion trends and the incredibly short time to introduce new products. In order to react quickly to fashion changes and consumer demand, Zara maintains extremely efficient supply chain operations. By properly designing the product structure and the manufacturing and supply chain process, Zara can delay the point in which the final products assume their specific characteristics, thus raising the flexibility to handle the changing demand for the multiple products. This is known as the “postponement” approach. In this paper, we will analyze how Zara achieves mass customization through “postponement”, with a particular focus on the supply chain structure, relationship and enabling activities...
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...Institute for Operations Research and the Management Sciences (INFORMS) INFORMS is located in Maryland, USA Operations Research Publication details, including instructions for authors and subscription information: http://pubsonline.informs.org Inventory Management of a Fast-Fashion Retail Network Felipe Caro, Jérémie Gallien, To cite this article: Felipe Caro, Jérémie Gallien, (2010) Inventory Management of a Fast-Fashion Retail Network. Operations Research 58(2):257-273. http://dx.doi.org/10.1287/opre.1090.0698 Full terms and conditions of use: http://pubsonline.informs.org/page/terms-and-conditions This article may be used only for the purposes of research, teaching, and/or private study. Commercial use or systematic downloading (by robots or other automatic processes) is prohibited without explicit Publisher approval. For more information, contact permissions@informs.org. The Publisher does not warrant or guarantee the article’s accuracy, completeness, merchantability, fitness for a particular purpose, or non-infringement. Descriptions of, or references to, products or publications, or inclusion of an advertisement in this article, neither constitutes nor implies a guarantee, endorsement, or support of claims made of that product, publication, or service. Copyright © 2010, INFORMS Please scroll down for article—it is on subsequent pages INFORMS is the largest professional society in the world for professionals in the fields of operations research, management science...
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...4.2011 59+12 Supervisor(s) of study 1st Antti Iire 2nd Anneli Juutilainen Executive organization H&M in Kuopio,Finland Abstract Hennes & Mauritz (H&M) is a 100 billion Sweden company, engaged in designing and retailing of fashion apparel and accessories. The company offers a range of apparel, cosmetics, footwear and accessories for men, women, children and teenagers. H&M primarily operates in Europe, North America and Asia, and has a presence in over 38 countries. The company is headquartered in Stockholm, Sweden and employs approximately 87,000 people on a full-time basis. This thesis focused on the strategic management of H&M company. The main research problem was to make an in-depth analysis of its marketing strategy and how to implement it. The main research method was a qualitative research by analyzing their company data, annual reports and making interviews with the manager, staffs and customers in Kuopio shop. The thesis starts with a general introduction and some background information of this thesis work. In the theoretical part, it described the definition, process, benefit and challenge of strategic management .In the practical part, an exhaustive analysis on the company’s strengths, weakness, opportunities and threats was made by using the detailed figures. The result shows a clear image of the process of strategic management by H&M...
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...| Zara–Rapid Fire Fulfillment | Unit 1 Assignment 1 | | | Capella University | 1/18/2015 | | Abstract This paper explores the case of Zara–Rapid Fire Fulfillment from research conducted in textbook and on website. Keywords: Supply Chain, Supply Chain Management Zara-Rapid Fire Fulfillment Zara is a company that is known for its speed and being responsive over the cost. While this is not how the industry looks at producing clothing in the marketplace, it has worked very successfully for Zara. Amancio Ortega founded Zara in 1975 with the purpose of understanding the world market and what it means to his fashion merchandise. Ten years after he established Zara, he formed a parent company called Inditex which incorporates other retail concepts and suppliers that he built. Zara began in Spain as a small shop near his factory as he was desperate to find out not to go bankrupt when a buyer backed out of an order that had all of his capital tied up and no prospective buyers in sight. This was the beginning of Zara which is now in 86 countries across the world. The Zara brand is known for the delivery small batches of clothes quickly to the stores. In some cases, this may mean a store will receive new garment orders more than once a week. This does not seem feasible to the clothing industry competitors; however, Zara has been doing this for decades successfully with large profits. The key to this is Zara’s supply chain. Zara controls more...
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...Xiaolan Li (437239) Dian Pertiwi Sulistianingtyas (439376) Janosch Kluen (358959) Brand: ZARA Date: 29/09/2015 Table of Contents 1. Introduction 3 2. An ideal Brand Concept Map 3 3. Methodology 5 3.1 Consistency of interview and Sample analysis 5 3.2 Procedure 7 4. Brand Management Plan 10 4.1 Actual versus Ideal Brand Map 10 4.2 Concluding recommendations 11 References 12 Appendices 14 Appendix A 14 Appendix B 14 Appendix C 15 Appendix D 25 1. Introduction As one of the largest clothing retailers in the world, Zara underwent immense growth over the past decades. It was founded in 1975 in Arteixo, Spain, by Amancio Ortega and Rosalia Mera. After a humble yet successful start, the founders soon found potential to optimise operations and decrease lead-times for their collections. The vertical integration of the supply chain gave Zara the opportunity to have new pieces in store in a matter of two weeks. This model is what made Zara grow over the years and what has made it a serious competitor in the current fashion retailing industry. Currently, Zara is part of the Inditex group and operates more than 2.000 stores all over the world. It has subsequent online outlets in most countries it operates in. In terms of sales, Zara managed to grow 8% to $19,7 billion. $0,5 billion shy of their closest competitor, and industry leader, H&M. Yet, an impressive...
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...Pages Thesis 27.4.2011 59+12 Supervisor(s) of study 1st Antti Iire 2nd Anneli Juutilainen Abstract Executive organization H&M in Kuopio,Finland Hennes & Mauritz (H&M) is a 100 billion Sweden company, engaged in designing and retailing of fashion apparel and accessories. The company offers a range of apparel, cosmetics, footwear and accessories for men, women, children and teenagers. H&M primarily operates in Europe, North America and Asia, and has a presence in over 38 countries. The company is headquartered in Stockholm, Sweden and employs approximately 87,000 people on a full-time basis. This thesis focused on the strategic management of H&M company. The main research problem was to make an in-depth analysis of its marketing strategy and how to implement it. The main research method was a qualitative research by analyzing their company data, annual reports and making interviews with the manager, staffs and customers in Kuopio shop. The thesis starts with a general introduction and some background information of this thesis work. In the theoretical part, it described the definition, process, benefit and challenge of strategic management .In the practical part, an exhaustive analysis on the company’s strengths, weakness, opportunities and threats was made by using the detailed figures. The result shows a clear image of the process of strategic management by H&M case. Some recommendations made...
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...Zara – Rapid Fire Fulfillment Donald R. Lile BUS – FP3022_assessment 1_1 Fundamentals of Supply Chain Management 3/2/16 Author Note Correspondence concerning this paper should be addressed to Donald R. Lile, Student Capella University, 225 S. 6th St. Minneapolis, MN 55402 dlile@capellauniversity.edu Zara – Rapid Fire Fulfillment Ferdows, Lewis, and Machuca, (2004). Zara, a Spanish clothier has been successful because of the ability to sustain an environment that optimizes the entire supply chain rather than each step. This assessment will identify why the company’s supply chain strategy is successful. This research will also examine how the fast response and information infrastructure aids in this success. And finally, and analysis will be completed on how the company’s unique replenishment strategy satisfies customers. Supply Chain Strategy Ferdows, Lewis, and Machuca, (2004). In an industry where the trend is to outsource, Zara bucks the system. Instead Zara keeps almost half its production in house. Zara designs and manages its rapid-fire supply chain by reinforcing three principles: 1. Close the communication loop 2. Stick to a rhythm across the entire chain 3. Leverage your capital assets to increase supply chain flexibility Zara customers can always find new products on the shelves, but they are in limited supply. Zara designers create approximately 40,000 new designs each year. From these new...
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...Zara Case Management 454 3/20/14 Founded in 1975 by Armancio Ortega, Zara is a very successful Spanish clothing and accessory realtor and the first business to start the Inditex Group empire. Starting in a small Galician city known as La Coruna in Spain, Zara has grown to be a retailer powerhouse with over 6,000 stores in 85 different countries. Although the number of stores and locations is constantly changing as Zara is known to open more than a store a day in past years. Zara has become the giant they are today because of their differentiated business model, this system has not been copied by any competitors which gives Zara a great competitive advantage. With its own production and distribution channels, Zara specializes in quick fashion innovations based on customer changing needs and is known to develop a new product or design and have it on store shelves in less than a month. Competition will generally do this same task in about 6 to 9 months. This competitive advantage has helped Zara to become a fashion leader and always stay a step ahead of competition. This also allows Zara to copy competitor new designs and come out with a slightly deviated version in just a couple weeks. This has competitors distraught as they spend enormous amounts of money on research and design just to have it instantly copied without costing Zara anything in research costs. This business model has allowed Zara to recently produce 11,000 distinct items in a recent year and several...
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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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...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, only time can indicate whether this version will eventually be the result of a conflation of the...
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