Kohan, based on the 4es model of marketing, where experience replaces product, exchange in new price, evangelism is now. It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. Zaras case study will be used, as an example, considered to be the pioneer in fast fashion industry nowadays. Zaras case study namely should the company upgrade. What i am more interested in is the idea behind the model. Fast fashion, sustainability, and the ethical appeal f. Fashion retailer zara has achieved spectacular growth via a distinctive designondemand operating model.
That means that zara can quickly the unpredictability in fashion, it is quite likely that you will end identify and catch a winning fashion trend, while its competitors. Hence, a super fast rate of operational responsiveness to customers was maintained and the dc was more of a place to merchandise than merely for storage. It for fast fashion case solution and analysis, hbs. It for fast fashion the case centre, for educators. William navarro jamie nordby marvin avilez brian nelder michele harman 2. The outcome will be presented and discussed in the results section. It was the most significant and one of the most prominent brand not just of. This report aims to develop and analyze the case of zara to explore zara s successful. In 2003, zara s cio must decide whether to upgrade the retailers it infrastructure and capabilities.
Zaras core business model is vertically integrated, it specializes in speed and efficiency and the fast fashion trend. Read, highlight, and take notes, across web, tablet, and phone. Fast fashion production apparel production was very fragmented. It for fast fashion harvard business publishing education. Case summary this case study is about how zara managing its retailing and logistics in becoming the most leading apparel retailer in the world.
Zara is a wellrenowned name in the field of clothes and accessories, all across the world. In the second instalment of this article, we probe the core strategies underpinning zaras success and the key factors enabling these strategies as well as the learnings possible for indian companies. Case study about zara businessmarketing bibliographies in harvard style. Now some of those other retailers and other fast fashion companies are attempting to replicate zaras quick production cycle strategy. How does this strategy contribute to its competitive advantage. New style ranges are frequently introduced in the market and thus zara is moving parallel to market trends. At the time of the case, the company relies on an outofdate operating system for its store terminals and has no fulltime network in place across stores. Salespersons at stores with pdas communicate and inform the cube so fast that enables zara to respond market in two weeks. It for fast fashion describe zaras business model and its superiority over other competitors in the industry zara is one. Its been a meteoric rise for ortega, the inventor of fast fashion who has changed the way we shop forever.
Nov 23, 2015 i would like to published my report of zara. In 2003, zaras cio must decide whether to upgrade the retailers it infrastructure and. Zara inditexs oldest brand, zara, was the pioneer of a new fashion category, called fast fashion trendy catwalkinspired items manufactured quickly and sold at affordable prices. The section following this introduction will present the case study of zara.
Business model overview and research opportunities felipe caro. This report included in my global lotistics class of kyushu business school. Strengths zara has been posting strong profitable returns till the end of the year 2001, whereas, the stock prices of the company has also been increased by 50%. Spanish fast fashion retailer inditexzara broke the 2season paradigm i. It for fast fashion based on harvard business school case study. View homework help zaras case study from mba 7050 at lsu. But zara often beats the highfashion houses to the market. Dec 09, 2015 zara is a small clothes manufacturer in the north west of spain and a pioneer of the fast fashion business model which eliminates fashion misses risk. Zaras secret for fast fashion hbs working knowledge. Zara can move from identifying a trend to having clothes on sales of rs.
Feb 21, 2005 2212005 spanish retailer zara has hit on a formula for supply chain success that works. Zara it for fast fashion case notes identify decision issue, and your role as a decision maker salgado and sanchez need to decide if it is the right time to update zaras information technology. Zara has used technology to dominate the retail fashion industry as measured by sales, profitability, and growth. Zara is one of six brands, which was launched by inditex group. Zara is a small clothes manufacturer in the north west of spain and a pioneer of the fast fashion business model which eliminates fashion misses risk. Digitalization of zara and fast fashion technology and. Compare the inditex group with its global competitors. Fast fashion zara had been one of the pioneers of this new category in the fashion industry, known for its quick productiontostore operations. It for fast fashion case solution, in 2003, ioc zara must decide whether to upgrade the infrastructure and computing capabilities of the retailer. Quantitative models and empirical studies, 2nd edition, narendra agrawal and stephen a. Business strategy of fast fashion a case study of zara request. Pdf the successful implementation of an integrated supply chain strategy. Zara generates a major portion of inditexs sales accounting for 73. Focuses on inditex, an apparel retailer from spain, which has set up an extremely quick response system for its zara chain.
Zara is one of the most popular fast fashion brands which expand quickly in the worldwide fashion market. Case study about zara businessmarketing bibliographies. U00235538 issue zara, the flagship chain of spanish based holding company inditex, has grown to great prominence in the international retail fashion industry. At the time of the case, the company relies on an outof. Analysis of zaras fastfashion retailing strategy with fit shelley e. Internationalisation of spanish fashion brand zara introduction despite the increased volume of research on the internationalisation of retailing since the end of the 1980s burt and carraleroencinas, 2000, attention has been devoted to the internationalisation process from the branding perspective moore et al. Fast fashion the spanish retail chain zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. In 2003, zaras cio must decide whether to upgrade the retailers it infrastructure and capabilities.
Inditex operates 1,558 stores in 45 countries out of which 550 stores are a part of zara chain. Instead of predicting months before a season starts what women will want to wear, zara observes whats selling and whats not and continuously adjusts what it produces and merchandises on that basis. Zara the pioneer and global leader in fastfashion retailing was founded by ignacio amancio ortega in galicia. In the second instalment of this article, we probe the core strategies underpinning zara s success and the key factors enabling these strategies as well as the learnings possible for indian companies. Zaras rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. The case describes this value chain, concentrating on its operations and it infrastructure. Fast fashion 703497 outsourced from the outset, first domestically, and then. With fast fashion, new styles swiftly supersede the old, defining and sustaining constantly emerging desires and notions of self. Nov 26, 2014 zaras core business model is vertically integrated, it specializes in speed and efficiency and the fast fashion trend. Request pdf business strategy of fast fashion a case study of zara this study analyzes the business strategy of fast fashion through zara, a successful. Apr 23, 2018 analysis of zara s fast fashion retailing strategy with fit shelley e. Zara case study report case summary this case study is.
Zara inditexs oldest brand, zara, was the pioneer of a new fashion category, called fastfashiontrendy catwalkinspired items manufactured quickly and sold at affordable prices. The key concern is the outdated operating system they use for their point of sale pos terminals. Sep 12, 2018 fast forward 40 years and zara s arrival in hawaii marked the companys 7,000th store. This paper will try to reveal the key aspects of asc in fast fashion. Establishing zaras fast fashion apparel chains in galicia spain was a noble idea as the case study pointed that by late 1990s, only us exceeded western europe in terms of total retail sales where chains accounted for about 85% and 70% of the total sales respectively.
Suitability of locating inditex in galicia spain for the emergence of apparel retailing powerhouse. The case of spanish fast fashion retailer inditexzara article pdf available in international journal of business and management 5. Fast fashion case solution, focuses on inditex, an apparel retailer from spain, which has set an extremely fast response for its zara chain. Technology also helped keep zaras costs under control. By defying conventional wisdom, zara can design and distribute a garment to market in just fifteen days.
Zara definitely implements a wise business model fast fashion. The case is based on the retail chain zara located in spain, it is regulating under the global value chain, and it is offering premium quality products for both the middle class and the higherclass customers. Harvard business school in 2003, zara s cio must decide whether to upgrade the retailers it infrastructure and capabilities. Describe zaras ability to employ a quick response qr strategy. But in 2002, it faces important questions concerning its future growth.
Section 3 discusses inditexzaras introduction, its fast fashion. Zara fast fashion case solution and analysis, hbs case study. The companys strategy involves stocking very little inventory and updating collections often to deliver the latest emerging fashion trends. Zaras product development teams attended high fashion fares and exhibitions to translate the latest seasonal trends into the designs. Instead of following the trend, they are actually creating a trend. Zaras secret for fast fashion hbs working knowledge harvard. The firm shuns advertising, rarely runs sales, and in an industry where nearly every major player outsources manufacturing to lowcost countries, zara is highly vertically integrated, keeping huge swaths of its production process inhouse. Victor martnezdealbenizy april 25, 2014 to appear in retail supply chain management. This case describes this model and outlines a number of challenges facing the company, with a particular emphasis on its international expansion. The case of spanish fast fashion retailer inditexzara. It for fast fashion case solution, in 2003 zara cio must decide whether the dealer to upgrade the it infrastructure and capabilities. This is not only about inventing a new business strategy, but also showing the companys objective.
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