Case Study on Zara: IT for Fast Fashion I. Executive Summary After reviewing Zara: IT for Fast Fashion, it is concluded that the problem the company is facing is their need to upgrade from their POS (point-of-sale) terminal system that uses a DOS (Disk Operating System) to a POS terminal system that does not run on DOS. Upgrading would allow the company’s stores to be interconnected and instantly check the stock of a certain SKU in another store. It is recommended that this upgrade be made before
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Executive Summery The Zara case study is a case of the fundamental of whether or not to upgrade an IT system which already works, in this case a POS operating system that uses DOS, to more modern operating systems that includes more functionality to meet new demands. Zara is a chain fashion store around Europe, Middle East, Africa, and South America that was founded by Amancio Ortega, in 1975. The first store and main headquarters was found in La Cournia, Spain. Mr. Ortega believed and implemented
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double that of Inditex, Inditex is much more profitable. 2. How specifically do the distinctive features of Zara business model affect its operating economics? Specifically, compare Zara with an average retailer with similar posted prices. Zara sources fabric, other inputs, and finished products from external suppliers. It has purchasing offices in Barcelona and Hong Kong. This gives Zara a competitive advantage towards the costs of goods sold, as it can purchase from both Europe and Asia according
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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
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Zara Case 1. What are the ways that Inditex ensures that “fast fashion” is truly fast? The primary drive behind “fast fashion” for Zara and more importantly its CEO Pablo Isla is logistics. The company produces two thirds of its product in nearby location such as Spain, Portugal, and Turkey, thus ensuring significant savings on transportation costs along with significantly faster delivery times. Aside from delivery times, Mr. Isla has installed sophisticated system of monitoring sales and ordering
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Disruptive Business Model The word Disruptive is used when referring to surprising new entrants into an industry, new competitors with new technology and sudden competition coming from unlikely sources. It means in business and technology, that sudden changes occur to improve the product or service in different ways that the market does not expect. There are many companies which used to follow the old stream method for their business strategy, but if we have a look in recent years we can see that
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Note: Solve any 4 Case Study’s CASE: I Managing the Guinness brand in the face of consumers’ changing tastes 1997 saw the US$19 billion merger of Guinness and GrandMet to form Diageo, the world’s largest drinks company. Guinness was the group’s top-selling beverage after Smirnoff vodka, and the group’s third most profitable brand, with an estimated global value of US$1.2 billion. More than 10 million glasses of the popular stout were sold every day, predominantly in Guinness’s top markets:
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Zara: IT for Fast Fashion Abstract The case describes a discussion Zara Executives are having whether to update or to keep the current IT equipment of its stores. It goes into detail how the company works and that speed and adaptability are its key objectives. Finally the advantages of both options are shown, leaving it to the reader to decide which option is the best. Company Zara, based in La Coruna, Spain, was found in 1963. Since 1958 they are part of Inditex, a Holding Company atop several
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CASE STUDY ZARA: Staying Fast and Fresh In early 2011, despite a successful decade of continued growth, fashion retailer Zara’s CFO Miguel Díaz was anything but complacent. When asked about the future, Díaz responded: Challenges abound. At the pace stores are being added in the rest of the world, the inevitable question is whether we should open our first major distribution center outside Spain. Another concern is that the prices of raw materials and labor are not going down, in part
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largest fashion distributors, has eight major sales formats - Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home y Kiddy's Class- with 3.147 stores in 70 countries around the world. Inditex Group is comprised of over one hundred companies associated in textile design, manufacturing and distribution. The achievements of the company and the uniqueness of its management model, which is based on innovation and flexibility, made Inditex one of the largest fashion distribution
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