Representative success case of time to marke t date of establishment the first retail shop was opened in 1975 number of stores 1440 stores in 77 countries domestic expansionkorea 3 stores were opened at coex,lotte department store etc. It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. Fast fashion, group 7 8 3 pros and cons of zaras activity architecture most significant advantage. Zarafast fashion case study the tale of a fashion dilemma. Staying fast and fresh in early 2011, despite a successful decade of continued growth, fashion retailer zaras cfo miguel diaz was anything but complacent. Business strategy of fast fashion a case study of zara. Introduction zara, the worlds biggest retail chain store of inditex group was founded by amancio ortega in spain in the year 1975. Staying fast and fresh zara, the flagship brand of the spanish retail conglomerate inditex, is one of the leading retailers of fastfashion, churning out frequent inseason assortment changes of knockoffs of popular runway styles and trendy fashions. Just within western europe, for instance, one study concluded that the british. Case study fast fashion step 1 after two decades of fast fashion popularity, retailers and consumers have come to realize one of its biggest issues, its impact on the environment. 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. Zara marketing case study analysis 2876 words 12 pages. One of the main traits of zaras business model is its vertical integration.
Case study of online retailing fast fashion industry ijeeee. Zaras business strategy within the fashion industry is based on an efficient supply chain system in which new fashion designs are released within a relatively short period keller 2012. Zaras new fashion products are developed within four to five weeks and delivered to the various stores. Fast fashion, group 7 12 3 pros and cons of zaras activity architecture distribution. Dec 27, 2009 hbs zara case study train staff on new pos application 8 cost per day of installation training time 2 000,00 total cost per store 8 000,00 exhibit 2 cost for the windows solution cost per new store 34,00 annual fees per store 390,00 initial investment without fees 61 893 290,00 maintenance fees for the first year 607 620,00. As discussed in case study 1, the supply chains in fast fashion rely on being the most cost efficient, flexible, and timely for each specific product type. Development of integrated communication plan for zara zara marketing case study analysis overview. How well do the various elements of zaras business model travel globally.
What are the sources of zaras competitive advantage. I will upload documents into my account later today. What impact has a fast fashion strategy on fashion companies diva. Suitability of locating inditex in galicia spain for the emergence of apparel retailing powerhouse.
What weaknesses, if any, do you seen in this business model. Zaras product development teams attended high fashion fares and exhibitions to translate the latest seasonal trends into the designs. Aug 22, 2016 zara case study harvard pdf berton august 22, 2016. The company has succeeded by breaking virtually every traditional rules in the. 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. The case of spanish fast fashion retailer inditexzara.
The global apparel chain, which includes the company zara, has been defined as a buyerdriven chain operating on a global level, profiting from a combination of refined research, design, marketing, and financial services allowing retailers, marketers, and manufacturers to act. Step 2 the affordability of fast fashion is one of the main reasons for its. This study shows that the supply chain management of a company using the fast fashion strategy is where the company combines. This study analyzes the business strategy of fast fashion through zara, a successful fashion brand from inditex spain. At zara, speed and responsiveness are more important than cost. Zara fast fashion case essay example bla bla writing.
Managing stores for fast fashion case study solution, zara. Felipe caro, ucla anderson school of management, discusses his awardwinning case zara. Supply chain management in fast fashion helsinki metropolia university of applied sciences. Case study 2 the fast fashion discount model the business model used by discounters such as primark or forever 21 is a modification of the proven fast fashion formula.
Case study 2 the fastfashion discount model the business model used by discounters such as primark or forever 21 is a modification of the proven fastfashion formula. Fast fashion case solution, focuses on inditex, an apparel retailer from spain, which has set an extremely fast response for its zara chain. Case study zara it for fast fashion business essay. Zara is known for their fast fashion, which means popular products may disappear off the shelf within days, forcing customers to constantly check for new items.
Demand in the harvard business model by xurxo garments it for heroclix and dice masters as well as pdf. The interview took place in october 2012, and involved companys design team. Scientists have only begun to study the effects of plastic contamination on plankton, but the. Zara is a wellrenowned name in the field of clothes and accessories, all across the world. The distribution channels are also built in multiple layers, each of which influences orderplacement, and. This not only keeps zaras designers informed of fastchanging customer trends and demand, but also provides the company with insight on lessdesirable merchandise. The most serious issue with maintaining the current it framework is that zara will not grow rapidly as most vendors are changing their machines and even though, one seller guaranteed that he will keep furnishing zara with dos framework,however the risk connected with the customer is high in light of the fact that zara could exclude this confirmation in its contract with the terminal vendor. Zara case study case solution and analysis, hbr case study. Compared to the standard formula, the fast fashion discounters have a markedly lower gross margin less than 4 0%, an even higher level of. Elaborately explain how information and communication technology is adding to the success of zara.
May 12, 2011 creation of zara zara one brand of the inditex group zara s profit makes up 75% of the inditex. I require this to be completed by no later then 19th august 2014 mmm365strategic management. Color feature of fast fashion brand outerwear on official online store. Analyzing inditexs other retail chains and zara will provide insight as to.
You can view samples of our professional work here. Below is a synopsis of the case study, which can be accessed in full at who are they. Fast fashion, group 7 9 3 pros and cons of zaras activity architecture different product precommitement. Compared to the standard formula, the fastfashion discounters have a markedly lower gross margin less than 4.
Finally the chapter questions the supply and demand. Zaras fast fashion approach is quite different from other clothing retailers, which not only enables zara to respond to the market demand with less time compared to its competitors, but also enhances zaras capacity to anticipate the customers. Fast fashion case solution attracted from the increasing demand in asian countries, gap expanded its stores in asian markets, opening 40stores in india and 110 stores in china. Zara, which is based in spain and is owned by the distribution group inditex, attempts the mindspinningly supersonic. Much talked about, especially since its parent companys ipo in 2001, often admired, sometimes reviled, but hardly ever ignored, zara has been an interesting case study for many other retailers and fashion brands around the world. Business model design and its importance in successful strategythe case of zara. This strategic decision to limit the outsourcing and integrate every stage of the supply chain process, from the design to the sell in their own managed stores, helps zara to cut costs and optimize performance. The success of zara is driven by its competitive advantages of quick response over its rivals. Background inditex, founded by amancio ortega, operates six different chains. Fast fashion case solution, focuses on inditex, a clothing store in spain, which has launched an extremely fast response system for its zara chain.
Technology also helped keep zaras costs under control. The concept of sustainability and competitive advantage is considered with other business models and compared with successful and unsuccessful company. At the pace stores are being added in the rest of the world, the. Situational analysis, which includes factors such as the environment, industry, swot analysis, and marketing strategies. It was the most significant and one of the most prominent brand not just of. Essay about zara case analysis 1522 words bartleby. The fashion house could use this competency to carry out the differentiation strategy. May 14, 20 zaras business strategy within the fashion industry is based on an efficient supply chain system in which new fashion designs are released within a relatively short period keller 2012.
It for fast fashion case solution, in 2003 zara cio must decide whether the dealer to upgrade the it infrastructure and capabilities. Zara has developed a business model based on quick response, short deadline and a great choice of clothes at reasonable price. This paper will try to reveal the key aspects of asc in fast fashion. Zara is a retailing chain of inditexthat specializes in highfashion at reasonable prices. Fast fashion case study ieor 153 logistics network design and supply chain management niko katigbak regine labog kevin leung ruoyun li miranda ortiz michelle papilla spring 2011 professor kaminsky uc berkeley i. Much talked about, especially since its parent companys ipo in 2001, often admired, sometimes reviled, but hardly ever ignored, zara has been an interesting case study for. This is not an example of the work produced by our essay writing service. Creation of zara zara one brand of the inditex group zaras profit makes up 75% of the inditex. Acquisition of new brands like intermix and piperlime has allowed gap to diversify the targeting audience. Case summary this case study is about how zara managing its retailing and logistics in becoming the most leading apparel retailer in the world. Fast fashion case solution and analysis, hbr case study. Zara s case study will be used, as an example, considered to be the pioneer in fast fashion industry nowadays.
Executive summary this report aims to study the supply chain management and logistics of fashion retailer, zara, to boost customer value. Fast fashion case solution and analysis, hbs case study. Zara is one of six brands, which was launched by inditex group. Tesco is a leading retailer, operating 2,291 stores around the world and employing 296,000 people. A market research, through an online survey, will be conducted in order to help the development of this study. Zaras case study will be used, as an example, considered to be the pioneer in fast fashion industry nowadays. Zara case study report case summary this case study is. A case study on the fast fashion retailer which focuses on. In that regard, successful replication of its business model is a key to the survival of the swedish fashion retailer. Oct 03, 2016 according to nelson fraiman, a columbia business school professor who wrote a 2010 case study about zara, the retail giant can get a product out from concept to store in just 15 days, while the industry standard is 6 months.
Zara is one of the most popular fast fashion brands which expand quickly in the worldwide fashion market. Case study professor felipe caro prepared this case as the basis for class discussion. In the last 12 months, inditexs stock price has increased by 50% despite bearish market conditions. It for fast fashion case analysis abstract this case paper makes a possible business analysis of zara, a successful spanish accessories and clothing retailer of inditex parent company. Managing stores for fast fashion case study analysis, subjects covered business processes process improvement supply chain management work force management by zeynep ton, elena corsi, vincent dessain source. Application of business intelligence in retail industry zara is a spanish clothing and accessories retailer based in arteixo, galicia. The case analysis objective is to discuss on its p. The rest of the case focuses on inditex, particularly the business system and. This strategic decision to limit the outsourcing and integrate every stage of the supply chain process, from the design to the sell in their own managed stores, helps zara to. The study is compared with the supply chain management and business strategies of zara. How well does zara perform compared to its competitors.
The value propositions offered by zara to its main customers who are young, fashion conscious citydwellers is offering new styles within the timeframe of several. The company had received a lot of attention for its centralized distribution model. In any case, they remain and accumulate in the marine. At the time of the case, the company relies on an outof. In some cases this is a fact, though the major accomplishment of these fast. Zara case study harvard pdf berton august 22, 2016. As inditex, the parent company of zara, continues operations they face a growth challenge between developing their lesserknown retail chains or determining the most effective way to expand zara into further geographical regions, both within europe and around the world. The section following this introduction will present the case study of zara. Moreover, zara always could provide new clothes with fashion every time. Tescoa case study by article as part of their ongoing programme article, the leading corporate social responsibility experts, have released a case study of tesco.
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