Introduction Zara is an international apparel company founded by Amancio Oretga, who opened the first store in La Coruna in 1975. Ortega was driven by the belief that retailing and manufacturing need to the closely linked. Inditex, a holding company for Zara, other retail chains and internally owned suppliers was formed in 1985. In the same year, Jose Maria Castellano Rios joined the company, bringing with him his experience at an IT manager and belief that computers were integral to the business
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9-703-497 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
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1. Zara’s Business and Operating Model: Zara is the most profitable brand of Inditex and in 2003 is contributing to 73.3% of group sales. Its business model is developed on short deadlines, small quantities and rapidly changing trends. Zara links back end production to front end retailing run by adapting to changing customer demands rapidly. Zara never produces “classics”, all of their fashion is trendy, they follow three main concepts a) The customer buys immediately as the current stock will
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NTERNATIONAL MARKETING ZARA: INDIVIDUAL ASSIGNMENT FACULTY OF ECONOMICS UNIVERSITY OF LJUBLJANA 1. What makes Zara different from other specialty apparel retailers? What are the main differences in the business models of Zara and H&M? One of the most important competitive advantages that Zara have is the rotation in the stores, Zara is constantly looking forward increase the rotation of products and the leadership in costs. Why is rotation so important and why this became a competitive
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UNIVERSITY Zara CASE STUDY Submitted to: Timajo, Renante Submitted by: Rodriguez, Suzaine Joyce Jimenez, Real Joy Ongbay, Maxenne Abigail Catbagan, Jethro A. Point Of View We assume the point of view of Pablo Isla Alvarez Tejera, who is the First Deputy Chairman and CEO of the Fashion retailer group, Inditex, in where Zara fashion stores is their most popular brand. B. Identify The Mission And The Vision Vision The vision of the company according to their website: “Zara is committed
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CADENA DE SUMINISTRO DE ZARA La cadena de suministro de esta tienda comienza en las propias fábricas que tiene dicha tienda donde se fabrican el 60% de sus productos. Los tejidos proceden de España, del lejano oriente, india y marruecos y estos se mandan a coser a diversos talleres en la zona. Se compra el tejido sin teñir para facilitar la actualización a lo largo de la temporada. Inditex que es el grupo al que pertenece zara se encarga de la compra, distribución y patronaje para
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Zara’s current target customers are young fashion conscious city dwellers. Historically this demographic of customers are hard to reliably forecast there tastes. Zara has found that their taste in clothes change rapidly and they have manufactured there clothing with the idea that they are only being warn at most of ten (10) times. Zara has a decentralized decision making model. The managers in each regional stores, throughout the company, have input of what are being stocked and sold in each of
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a. What is Zara doing different (differentiation)? - trying to respond very quickly to the demands of target customers. - trying not to advertising except its twice yearly sales and opening of a new store. This reduce the price of the clothes. b. What are the specific information requirements to realize this Business Model? (For example, aggregating store orders, etc.?) Make a list and describe each in 2-3 sentences. * Aggregating store orders * This makes Zara knowing the total
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lawn. It’s the headquarters of Zara, the company that introduced the idea of fast fashion some two decades ago, then developed a highly centralized and often studied—but rarely duplicated—design, manufacturing, and distribution system. The building is officially known as the Cube. Those who work there think of it as the brain. The Cube is central command for a fashion empire built on an unconventional idea: speed and responsiveness are more important than cost. Zara is renowned for its ability to
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impossibility, but there are winners and the Zara chain is one of them. The Zara fashion chain, founded in 1975 in Arteixo, is perhaps the world's most successful clothing chain. Zara has helped its parent, the Spanish firm Inditex, grow from obscurity in the mid. 90’s to the world's third largest pure-play fashion retailer after the Swedish H&M and US-based Gap Inc. with financial performance well ahead of these rivals. With 1021 shops, at 13.04.2007, in 55 countries, Zara appears to have found the formula
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