Zara uses a mixture of strategies when sourcing their production. It uses most of outsourcing to produce basic items and initial fashion collection. It outsources about half of its production to third party (of the outsourced 60% from Europe, 30% from Asia, 10% rest of world). The sourcing strategy with external suppliers is based on expertise, relative cost, transportation cost and most importantly time sensitivity. At the beginning of each season Zara commits 50-60 % of its inventory, while quarter
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Jay Case Study: Zara International Fashion at the Speed of Light Question 1: In what ways are elements of the classical and behavioral management approaches evident in how things are done at Zara International? How can systems concepts and contingency thinking explain the success of some of Zara’s distinctive practices? Answer 1: Elements of the classical management approach are very evident at Zara International. The classical management approach contains three branches, which are scientific
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Inditex/Zara history (Explain) Amancio Ortega Gaono began Inditex as a way to bring high fashion apparel to the market at an affordable price. After years working in the apparel retail industry in la Coruña, Spain, Ortega left his job in the early 1960’s to being manufacturing trendy designers pieces in cheaper materials and selling these items to local shops. In 1975, Ortega opened his first retail store, Zara, drawn by its inexpensive, fashionable merchandise, and Ortega expanded the Zara chain
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Introduction to Zara (Inditex) Case Study In 1975, Amancio Ortega started a fashion retail shop that makes the fashionable clothes faster and beauty than other competitors. The first Zara store opened in 1975 in Spain. The very best quality of Zara was, it only takes two weeks to develop a new cloth/product and release it to the market while other competitors take two months. Zara didn’t get third party help to distribute, design or even produce because Zara did them alone. Zara was fashion focused
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ZARA: IT for Fast Fashion Name: Institution: ZARA: IT for Fast Fashion Background of the Case Situation Zara is among the top international fashion brands under Inditex. Amancio Ortega founded the company in 1975 with its first store in La Coruna. Ortega had a primary goal of linking customer demand to manufacturing, and at the same time linking manufacturing to distribution. Inditex was created in 1985 as a parent company for Zara. In the same year, Jose Castellano joined Zara
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Zara’s current POS terminals run on the Microsoft Disk Operating System (DOS). As the largest retail chain established by Inditex, Zara generates 73.3% of the group’s sales. With the ability to quickly respond to the demands of their target customers, young fashion-conscious city dwellers, Zara are able to produce and deliver styles while they are still hot. Zara has three departments (Men, Women, and Children), each department, at corporate level in La Coruna, is managed by a group of “commercials”
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Zara IT Case Analysis Questions 3. What current or potential weaknesses (if any) do you see in Zara’s current IT infrastructure, IT strategy (planned improvements/additions to their existing infrastructure), and the process (who all are involved in the decision making for investment in IT and how often they meet and steps they go through to arrive at the decision) used to formulate the IT strategy? The obsolescence of the DOS-based POS system for one. Similar to Windows XP, everyone was so comfortable
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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
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manufactured or even supported by the manufacturer, there will come a time when growth will be limited by lack of available POS terminals that would work with their existing software and hardware. Because of the disastrous constraint potential that Zara faces by continuing to use an obsolete operating system, I would advise Salgado to upgrade Zara’s POS systems in the very near future. In order to methodically plan and implement this upgrade, I would advise Salgado to follow the innovation process
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Monitor and Control 16 Appendix A 17 Executive Summary Zara is a retail store of the Inditex group that started in 1975 and has now grown to 531 stores. Zara’s strategic business model focuses on product variety, speed to market, and store locations. The main business idea behind their model is to link customer demand to manufacturing and manufacturing to distribution which they have accomplished through vertical integration. Zara is currently facing the decision to either implement a new operating
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