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. * Advertisement
They do not invest a lot of money on advertisement, in contrast of their competitors. Instead, they try to have their stores basically in crowded locations and well known places where usually young nation is. Downtown of a city is typically the place where they have multiple stores. Their design and organization change in four years in order to be innovative and creative