Zara Business Case - 15365 Words

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, â€Å"Fashion† (1904) Inditex (Industria de Diseà ±o Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by posting net income of â‚ ¬ 340 million on â‚ ¬ revenues of â‚ ¬ 3,250 million in its fiscal year 2001 (ending January 31, 2002). Inditex had had a heavily â‚ ¬ oversubscribed Initial Public Offering in May 2001. Over the next 12 months, its stock price†¦show more content†¦Proximity also mattered because it reduced shipping costs and lags, and because poorer neighbors sometimes benefited from trade concessions. While China became an export powerhouse across the board, greater regionalization was the dominant motif of changes in the appare l trade in the 1990s. Turkey, North Africa, and sundry Eastern European countries emerged as major suppliers to the European Union; Mexico and the Caribbean Basin as major suppliers to the United States; and China as the dominant supplier to Japan (where there were no quotas to restrict imports).3 World trade in apparel and textiles continued to be regulated by the Multi-Fiber Arrangement (MFA), which had restricted imports into certain markets (basically the United States, Canada, and Western Europe) since 1974. Two decades later, agreement was reached to phase out the MFA’s quota system by 2005, and to further reduce tariffs (which averaged 7% to 9% in the major markets). As of 2002, some warned that the transition to the post-MFA world could prove enormously disruptive for suppliers in many exporting and importing countries, and might even ignite demands for â€Å"managed trade.† There was alsoShow MoreRelatedZara Business Model (Case Analysis)2398 Words   |  10 PagesZara Case Quest 4/5/2011 Done By: Faisal Alsawaihan Zara case Quest What Business is Zara In? (Business model) Zara is one of the Inditex group, which they mainly in the apparel industry. It considers the most successful brand in this group and most of profit margin is coming from Zara stores that are widespread around the world (76countries) and their main products of apparel are for men, women, and kids. As we can see from the article (It for fast fashion) and Zara’s annual report in 2009, theRead MoreBusiness Analysis Of Zara, The Leading And The Profitable Brand Of Inditex1592 Words   |  7 Pages1. Executive Summary This case paper presents the business analysis of Zara, the leading and the profitable brand of Inditex. The case paper’s objective is to discuss whether to update the current DOS/IT infrastructure and evaluate the effects of the upgrade. It presents the IS implementation opportunities and evaluating the effectiveness of the implementation. It concludes by providing recommendations for updating the current OS along with its advantages. The approach to analysis includes lookingRead MoreZara Case Study986 Words   |  4 PagesZara is the flagship brand of the Spanish retail group, Inditex SA, one of the super-heated performers in a soft retail market in recent years. When Indtiex offered a 23 percent stake to the public in 2001, the issue was over-subscribed 26 times raising Euro2.1 billion for the company. Zara is unique model in business world today it has its own principles which may varies from its competitors in the same industry starting from production strategy ending with supply chain management strategy, theseRead MoreZara Case Write-Up Essay1279 Words   |  6 PagesCase 2: Zara 1. What are the essential elements of Zara’s business model? The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligenceRead MoreZara International Case Study1000 Words   |  4 PagesZara International was a retail shop originated in La Coruna, Spain in 1975. It was clothing and accessories shop and imitated the latest fashion trends and sold them at a lower cost. It became Zara International after entering Portugal in 1988 and then the United States and France in the 1990s. The distributor for this brand is Inditex and is considered the most successful retail chain in the world. Zara has a business strategy that is very different from the retailers nowadays. If a customer ordersRe ad MoreZaras Case Study1373 Words   |  6 Pagesdoes it differ from its Competitors? â€Å"Zara has pioneered leading-edge fashion clothes for budget minded young adults through a tightly integrated vertical structure that cuts delivery time between a garment’s design and retail delivery to under three weeks (against the industry norm of three to six months)† (Grant, 2010, p.212) According to Clayton Christensen in order to process you Value Proposition you must look at the following (Harvard Business Review) Zara’s value proposition isRead MoreSupply Chain Management Practices of Spanish Garments Retailer Zara,1124 Words   |  5 Pages Introduction This case discusses the unique supply chain management practices of Spanish garments retailer Zara, which enabled it to gain competitive advantage over other fashion retailers in the world. Zaras vertically integrated supply chain system enabled the company to place the latest designs in any store across the world within a period of two to three weeks. The company produced garments as per the latest trends in a limited quantity. Zara introduced 12,000 designs every year, with newRead MoreCase Study : Supply Chain Management1112 Words   |  5 Pages INTRODUCTION Top business companies in the world have discovered their own valuable strategy which makes their business superior than others. The secret is supply chain management (SCM) and it includes all integrated activities that from manufacture the product to customer service. SCM integrates the transportation and storage of raw materials , inventory, and finished goods from initial supplier to ultimate customer. Successful SCM coordinates everything into a seamless process. It connects allRead MoreAssignment Zaras778 Words   |  4 PagesYou are asked to read: Zara: IT for Fast Fashion. Then, you are required to use the following questions to format/organize your response (for the sake of brevity and clarity limit yourself to answering the questions concisely). Please read all the instructions carefully and comply by all of them. Please do not bypass/ignore the instructions or requirements—else points will be deducted. I. Problem Definition 1a. What is the key problem facing Zara executives? 1b. What are the sub-components ofRead MoreZara Case620 Words   |  3 PagesDEPARTMENT OF ACCOUNTANCY UNIVERSITY OF ILLINOIS MEMORANDUM TO:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mario Schijven FROM:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Yue Ma DATE:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  September 28th, 2015    SUBJECT:   Ã‚  Ã‚  Zara’s Value Chain (Zara Case) Zara’s value chain differs from the other traditional models a lot. The design and creation rely extensively on copying fashion trends observed at the fashion shoes and at competitors’ points of sale, which based on buyers and designers alike. Value Chain Zara’s value chain is supported