We neither endorse nor tolerate any form of plagiarism. Even through zara adopted alternative market entry modes such as joint ventures or franchises, the dependency on zaras centralized system ensures that zara can appropriate the most significant portion of available rents from their markets. Threat of climate change from fast fashion is heating up by consuelo williams. Keywords supply chain management, agile supply chain, zara case study. Rethinking their supply chain strategy, zara will face three. Zara has followed an optimal combination of all these. This case study has the objective of study zaras strategies, from their supply. Zara, basics have increased from less than 20% in the late 90s to 40% or more nowadays. Fast fashionzara final version free download as powerpoint presentation. Zaras strategic capabilities and value chain analysis. Analysis of zara s fastfashion retailing strategy with fit shelley e.
Doc the strategic management analysis of zara relative. Inditex, the parent company of the brand zara have a strong portfolio of 8 brands which is helping the company in nurturing each brand with its experience and strong financial base. An example of successful operations strategy in the retail industry is the strategy employed by zara which is discussed in this critique. Zara is the groups most geographically diverse retail concept with 80% of its full line stores located outside of spain. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. Fast new product design is a key enabler of zara s strategy. This detailed case study will provide the complete knowledge of operation management and its criterias. The company has laid out a strategic environmental sustainability plan 20162020 with elements to improve reduction of ghg emissions listed below 2.
Challenges and recommendations louna sbou term paper business economics business management, corporate governance publish your bachelors or masters thesis, dissertation, term paper or essay. This strategy minimizes zara s total cost because it reduces the percentage of markdown merchandise compared to its competitor. Oct 14, 20 zaras business success with its flexible approach is demonstrated in its stock market success as well. Zaras successful supply chain management strategy social. Business strategy communicates the competitive nature of the business, from who they should serve, what needs should be met, and development of the organizations core competencies parnell, 2014. This strategy is embraced to focus on the operations which can enhance cost efficiency while boosting service delivery and value proposition. As we all know, the global apparel market is a consumerdriven industry. This will include specifically focusing on zara and its business operations to comprehend the strategies that inditex has employed to separate it from its competitors in the fast fashion industry. No other european retailer has expanded so quickly and so successfully beyond its own borders. Understanding internationalization patterns of zara. Zara has used almost a zero advertising and endorsement policy throughout its entire existence, preferring to invest a percentage of its revenues in opening new stores instead. Conflicts more capacity variety cost meeting targets better forecasts economical operations other strategic criteria.
Highlight what are the strengths, weaknesses, opportunities, threats of zara. Next to zara, the rest of the labels the groups own are bershka, massimo dutti, pull and bear, stradivarius, oysho, zara home, zara kinds and uterque. Oct 26, 2015 zara controls most of the stages on the chain supplying, designing, manufacturing, and distributing its products 2. Zara positions its goods as highend products with low price.
Its as if by proxy, some of that high fashion rubs off on zara, though the prices are much more affordable for its audience. Pdf analysis of the keys to zaras inditex successful business. It provides the basic information of these organizations and how the operation strategy. Pdf inditex is the largest fashion distributor and retailer in the world, with eight. Mar 18, 2016 the products of mango are also similar to zaras in style, pricing and quality, however, mango is very different from zara in organizational strategy as mango is based on a franchising system, and in marketing strategy, relying heavily on advertising campaigns. Aug 04, 2017 a case study analysis of zaras operations strategy zara is the largest division and flagship brand of the spanish retail group inditex 1. It starts with an introductory casestudy considering supply chain strategies in the apparel industry. The objective of this presentation is to obtain board approval on the proposed operational strategy for gap and any possible changes to the recommendations and conclusions drawn by the executive team. Zara s fast fashion operation obliges its inhouse design and production teams to work with a limited set of preselected fabrics and materials. Kohan, based on the 4es model of marketing, where experience replaces product, exchange in new price, evangelism is now. Business strategy of zara core competencies are resources and capabilities that create the firms competitive advantage.
The key to zara s ability to establish an agile supply chain rests on the following unique approaches. Details of the constituents of an operations strategy are explored in more detail in chapters 5 through 14. Operations strategy, 2nd edn, financial times prentice hall, harlow. The primary aim of a business in the competitive business environment, underpinning its goals and objectives of sustenance and growth, is to develop an edge over rival firms building on its resources and competencies. Zara operations strategy matrix essay example graduateway. Doc zaras operations strategy wilbert makori academia. Operations management of inditex and its retail zara. Here, we will discuss the strategic implementations of zara under the context of porter. You wont find a zara next to walmart, but more likely near higher end fashion retailers. How retailers use emotion to make you spend more cnbc. Mar 23, 2012 the company reports that not only did it seek out prime real estate along established shopping corridors hello zara flagship on fifth avenue in nyc, it also changed up its retail strategy to. Operation zara dan ikea case operations strategy of zara.
Fast fashionzara final version strategic management. The authors analyzed the stock performance of zara, the gap, and limited brands. Jun 08, 2016 how retailers use emotion to make you spend more. Zara is a spanish fashion chain stores, which is one of the largest international fashion brands of inditex.
Pdf operations and supply chain strategy researchgate. Cons business strategy of zara general information pros core compentencies of zara low quality minimal advertisement low in store inventory attractive prices up. Zara strategic plan 2015 by grisell rodriguez on prezi. It offers jeans, trousers, tops, skirts, knitwear, tshirts, shoes, bags and accessories. In addition explain the external benefits of these five objectives. Michael porter, a harvard economist, suggests that there are. The analysis and recommendations of zara s strategic plan strategic position is concept which is concerned with the impact on the strategy of the internal resources as well as competences, external environment as well as the influence and expectations of the stakeholders. The objective of this paper is to analyze and evaluate the operations strategy of zara. Configurations of manufacturing strategy, business. The adoption of case study evaluation is highly suitable to find out to identify the implications of supply chain implications in global sourcing strategy of zara. Marketing mix of zara zara marketing mix and 4 ps of zara brand. Is it only zara s fast fashion approach, or a combination of retail strategy and fast fashion thats driving growth in the country.
The product strategy and mix in zara marketing strategy can be explained as follows. A case study analysis of zaras operations strategy. Strategic partnerships and cost of production in comparison to competitors, zaras business strategy, in regards to strategic partnerships and cost of production, provide for a strategic competitive advantage. Operations management is in regard to all operations within the organization responsible for creating goods and services that organizations pass to. Ideas inspired by urban hot spots, fashion shows, and store. Marketing strategy of zara zara marketing strategy. A case study analysis of zaras operations strategy zara is the largest division and flagship brand of the spanish retail group inditex 1. Sep 02, 2018 competitive advantage in the marketing strategy of zara strong parent company. Such is the craze of this brand among the fashion enthusiasts. Here is my report, the strategy of zara, which you asked for on july 12, 20. An indepth case approach is adopted based on extensive secondary research. Operation strategy of coca cola 2990 words bartleby.
Once a business strategy has been developed, an operations strategy must be formulated. This presentation covers the main characteristics of zara, a general view of fast fashion indystry, porters five forces analysis, competitors external environment as well as a complete internal analysis regarding. The intent of the meeting was to discuss zara s current strategy and. After 38 years of operation, zara now has 1,830 stores in 82 countries across europe, america, africa, and asia. Zaras strategy with choosing where to put stores is to identify highstreet retail areas in major metropolises. Utilizing zara s strong brand image, zara home was introduced in 2003, providing housewares. Another aspect, the business strategy should focus on those opportunities that provide them with a long term competitive advantage bethel, 2016. Strategic plan 2015 presented by grisell rodriguez conclusion this strategic plan expresses zaras continued commitment to its mission and vision, to give the customer an exclusive choice of fashion by providing a quicker turnover of new stock than other fashion retailers. Strategic analysis pulling together both the external and internal factors impacting on zara as an organisation, it is then possible to establish a strategic plan for the future, in order to ensure the ongoing success of this substantial fashion retailer.
Ideas inspired by urban hot spots, fashion shows, and store customers are transmitted to the creative teams. Supply chain strategy think of the supply chain strategy as a bridge between business strategy and sc operations. Supply chain operations sco manages three clear aspects. Zara is a wellrenowned name in the field of clothes and accessories, all across the world. This will provide a plan for the design and management of the operations function in ways that support the business strategy. The present essay deals with the operations management of zara. With such fast paced production, expeditous inventory management, and social media networks that are exploding with followers, zara has been able to successfully develop an internal and profitable supply chain strategy like no other. Zaras product development capabilities are essential to zaras business strategy and future success. To do this, it will be used the operation strategy matrix, that defines on the vertical side the performance objectives of the company and on the horizontal side the different areas in which decisions can be made.
A case study on zaras operation management strategy 1 mohammed mansur. Various authors in operations literature have used different terms to describe such manufacturing capabilities, although they have most often been referred. The operational strategies that have made inditex successful from its competitors will be examined in the current study. Oct 02, 2016 zara is a spanish fashion chain stores, which is one of the largest international fashion brands of inditex. Zara s strategic capabilities and value chain analysis please read this carefully first the intended purpose of our research papers is that they are used as models to assist in the preparation of your own research papers. The strategic management analysis of zara relative to the case in developing countries. Pulling together both the external and internal factors impacting on zara as an organisation, it is then possible to establish a strategic plan for the future, in order to ensure the ongoing success of this substantial fashion retailer. Zaras quick response capacity is made possible by the fact that it controls the 3 main stages of its operations that define the competitive edge of the company. Operations strategy underlies overall business strategy, and both are critical for a company to compete in an everchanging market. In the case of zara, its marketing strategy consists of high turnover in which the company usually has ten thousand single items per year running through their stores zara. To implement its sc strategy, zara redesigned its inventory. Operations strategies drive a companys operations, the part of the business that produces and distributes goods and services.
It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. Subsequently, efficient and responsive supply chain strategies are distinguished. Zaras secret to success retail its pricing strategy t1. Zara uses operations research to reengineer its global mit. Zaras business operations and strategy how and why it. Also, globalization and new technologies have allowed consumers to have more access to fashion. Comparison of the operation strategy of the organizations.
While it may not be possible for another company to exactly duplicate the conditions under which zara flourished, one can certainly learn from its experiences, and its business structures. For the full body shape woman target consumer, zara brand name is the fashion expert brand character for your wardrobe productcompetitive frame that helps you look the best you can brand promise because it takes the high fashion trends and adapts them for the real you supportadvertising positioning statement for zara. The study is thoroughly checked for internal validity with a proper balance in the structure of design and adoption of appropriate research instruments. A framework for operations strategy how operations can be used for competitive advantage in todays world. May 02, 2016 zaras pricing strategy not only the value proposition is evident, but also is affordable to most customers. The third marketing strategy of zara is positioning strategy 4. Zara s success is as much a result of its history and location, as of its counterintuitive business strategies. Configurations of manufacturing strategy, business strategy, environment and structure peter t. One of the major strength of the company is that it is able to respond very quickly to the changing needs of the customers. Luxury brands have to admit zara has a strong position in the global market. Explain the target market and active customers of zara focus on the potential customers value proposition and the reasons why people prefer zara. The top section of the fashion triangle corresponds to the true fashion products. Synergy between business and operations strategy zara s strategy is growth through diversification with both horizontal and vertical integration. It means zara opens its first few stores in a country to get an understanding of a market and.
Analysis and recommendations of zaras strategic plan bartleby. In the first part, operations strategies as well as the strategic fit are discussed. This chapter discusses basic supply chain and operations strategies. A case study analysis of zaras operations strategy uk essays. Another marketing strategy of zara is focuscost strategy 3. To distribute merchandise to its stores, zara uses a supply chain consisting of two. Zara is the basis of inditexs success and their first retail format established in 1975 and the brand is the generator of about twothirds of the entire groups sales by offering fashion products that are trendy.
Zara s procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Later, in 2007, the first online store was launched to sell zara home products inditex, 2012. Therefore, the strategy of fast fashion make zara successful and their operation management and supply chain are their competitive advantages. Zara s case study zara is a fashion label and fashion chain stores established in 1975 by the spanish group inditex own by amancio ortega. Therefore, the strategy of fast fashion make zara successful and their operation management and supply chain are. The magic of zara has much to do with its tight supply chain, doiron. Zaras power is not easily duplicated as they control a significant portion of the value chain. Threat of climate change from fast fashion is heating up. Business strategy of zara by melisa bilgin on prezi. How zaras winning strategy is disrupting the indian. Process view supply, technology, demand, and innovation 9 ardavan asefvaziri jan1011 zaras operations strategy fast product design. Uniqlo operations fashionable and highquality clothes that anyone can wear anywhere, any time thats what uniqlo is all about.
Rethinking their supply chain strategy, zara will face. This study analyzes the business strategy of fast fashion through zara, a successful fashion brand from inditex spain. In consideration of optimizing development and training costs, the current pricing strategy is suitable for zara. With limiting their production of their inventory items, zara reduces their risk of stockpiling unwanted clothes.
Zara is one of the leading luxury fashion labels in the world. Business strategy of fast fashion a case study of zara. Responsive strategies of zara improve the efficiency of information exchange in every level of supply chain those are customers, store managers, designers and market specialists. Marketing, operations and general management department. Pdf this chapter discusses basic supply chain and operations strategies. Feb 10, 2017 thank you for watching, hope you guys enjoy it.