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. It was the most significant and one of the most prominent brand not just of. This case study aims to identify what operating system would be best for zara. Zara fast fashion case assignment free assignment samples, guides, articles. University of the philippines diliman extension program in pampanga claro m. Zara is one of the most popular fast fashion brands which expand quickly in the worldwide fashion market. Zara was described by louis vuitton fashion director daniel piette as. Should they maintain their current dosbased pos system or should they upgrade to a more modern system. Fast fashionzara final version free download as powerpoint presentation. Zara is a spanish clothing and accessories retailer based in arteixo, galicia. How is strategic management illustrated by the case history.
Vertical integration, a distinctive feature of zaras business model, has allowed the company to successfully develop a strong merchandising strategy. 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. Business strategy of fast fashion a case study of zara request. Hbs cases are developed solely as the basis for class discussion. Our toolbox for supply chain challenges is the latest addition to the faect portfolio. Zaras secret for fast fashion hbs working knowledge. An indepth case approach is adopted based on extensive secondary research. Zara, a prosperous fast fashion maker and retailer, noted for its business process that is unusual, should look at the future of the business and its own main brand that is popular. While the firm supports eight brands, zara is unquestionably the firms crown jewel and growth engine, accounting for roughly twothirds of sales2. Founded in 24 may,1975 by amancio ortega and rosalia mera. Fast fashionzara final version strategic management. Zaras secret for fast fashion, zaras development and organization facilitated an easy flow of information from customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers. Zara s case study will be used, as an example, considered to be the pioneer in fast fashion industry nowadays. Fast fashion case solution and analysis, hbs case study.
This fast fashion system depends on a constant exchange of information throughout every part of zaras supply chainfrom customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers to subcontractors, from warehouse managers to distributors, and so on. Dec 14, 2017 zaras fast fashion business model zaras business model is basically based on the principle that it can sell medium quality fashion clothing at affordable prices. Focuses on inditex, an apparel retailer from spain, which has set up an extremely quick response system for its zara chain. Kohan, based on the 4es model of marketing, where experience replaces product, exchange in new price, evangelism is now. Digitalization of zara and fast fashion technology and. Welcome to fast fashion, an emerging force that sees clothing retailers frequently purchasing small quantities of merchandise to stay on top of emerging trends. A retail management case study on zaras implementation of it. The case describes this value chain, concentrating on its operations and it infrastructure. Fast fashion case solution, focuses on inditex, an apparel retailer from spain, which has set an extremely fast response for its zara chain. Business strategy of fast fashion a case study of zara. At the time of the case, the company relies on an outof. Zara, a key subsidiary of its spainbased parent company inditex, was established in galicia, spain in 1975. Case summary this case study is about how zara managing its retailing and logistics in becoming the most leading apparel retailer in the world. 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 issue zara, the flagship chain of spanish based holding company inditex, has grown to great prominence in the international retail fashion industry. Product variation o ability of zara to launch new trends, design, and variation of products. Eric slond is functional consultant and cofounder of faect bv. 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.
Please do not distribute without the authors permission. Agenda company overview zara business model key success factors swot analysis competitors analysis conclusion 3. Zara needs just two weeks to develop a new product and get it to stores, compared to the sixmonth industry average, and launches around 10,000 new designs each year. Zara inditexs oldest brand, zara, was the pioneer of a new fashion category, called fastfashiontrendy catwalkinspired items manufactured quickly and sold at affordable prices. 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. It for fast fashion 3 executive summary this paper presents an analysis of zara, an international retailer that follows a simple, yet unique. Zaras product development teams attended high fashion fares and exhibitions to translate the latest seasonal trends into the designs. Hbs professor pankaj ghemawat and iese professor jose luis nueno prepared this case. This report aims to develop and analyze the case of zara to explore zara s successful. New style ranges are frequently introduced in the market and thus zara is moving parallel to market trends.
In 2003, zara s cio must decide whether to upgrade the retailers it infrastructure and capabilities. Fast forward 40 years and zaras arrival in hawaii marked the companys 7,000th store. It has the different types of the product ranges and at the same time, it has. Doc zara it for fast fashion case study sai sapnu academia. Fast production o ability to design and get finish goods in stores within 25 weeks. Shoppers in 70 countries have taken to zaras knack for bringing the latest. Technology also helped keep zaras costs under control. The section following this introduction will present the case study of zara. This case is about growth strategy, risk management. Now some of those other retailers and other fast fashion companies are attempting to replicate zaras quick production cycle strategy. Amancio ortega, zara founder believe in close relationship between retailing and manufacturing is key for apparel industry because of unpredictable demand. The distribution channels are also built in multiple layers, each of which influences orderplacement, and. Zara is a wellrenowned name in the field of clothes and accessories, all across the world.
Its been a meteoric rise for ortega, the inventor of fast fashion who has changed the way we shop forever. Marketing in fast fashion in mid springsummer season 20, oscar perez marcote, director of the zara business unit at inditex since 201, sat in his office preparing for a meeting with inditex ceo pablo isla tejera. 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. The outcome will be presented and discussed in the results section. Zara case study report case summary this case study is.
Avinash shaw mohit chandra prabhat gupta sumeet agarwal sumona goash 2. Feb 21, 2005 this fast fashion system depends on a constant exchange of information throughout every part of zaras supply chainfrom customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers to subcontractors, from warehouse managers to distributors, and so on. But for the fast fashion field, which should be separately treated from ordinary fashion field, seldom study in consumer behavior involves or pay attention to this newly growing market. This report aims to develop and analyze the case of zara to explore zaras successful. Zara fashion retailer has achieved impressive growth through distinctive designondemand operating model. It has done so by advantage in recognizing and responding to changing fashion. A case study analysis of zaras operations strategy. Zara was described by louis vuitton fashion director daniel. Suitability of locating inditex in galicia spain for the emergence of apparel retailing powerhouse. But what has made zara the prosperous company that is nowadays. It for fast fashion case solution and analysis, hbr.
Fast fashion, sustainability, and the ethical appeal f. It for fast fashion the case centre, for educators. Then, 510 years later, the ever more aggressively priced fastfashion discounters arrived and began driving a step change in customer expectations with their ability to undercut traditional clothing retailers by 50% or more see exhibit 1 and case studies 1 and 2. Case study zara fast fashion free download as pdf file. Pdf zara is one of the most popular fast fashion brands which expand quickly in the worldwide fashion market.
It for fast fashion case solution, in 2003, ioc zara must decide whether to upgrade the infrastructure and computing capabilities of the retailer. Strategic management is illustrated in this case story when mr. Zaras fast fashion business model zaras business model is basically based on the principle that it can sell medium quality fashion clothing at affordable prices. Quantitative models and empirical studies, 2nd edition, narendra agrawal and stephen a. This way, fashion companies need to adapt their business and turn it more. It is because firstly the fast fashion is always considered as a small part of fashion industry, so the features of. Ortega opened his first zara clothing store and the business model of the company.
In 2003, zaras cio must decide whether to upgrade the retailers it infrastructure and capabilities. This also requires a geographically close network so the company built up its manufacturing sites close to its headquarters. Zaras case study will be used, as an example, considered to be the pioneer in fast fashion industry nowadays. It for fast fashion case solution, in 2003 zara cio must decide whether the dealer to upgrade the it infrastructure and capabilities. Agasang,castro,cunanan,espiritu,mallari,sapnu,vitug. This strategy has led zara to create a climate of scarcity and opportunity as well as a fastfashion system.
Apr 23, 2018 analysis of zara s fast fashion retailing strategy with fit shelley e. Strategic management involves all basic management functions like planning, organizing, leading, controlling, and all of these areas are illustrated by this case story. While competitors falter, zara is undergoing one of the fastest global expansions the fashion world has ever seen, opening a store a day and entering new markets worldwide 68 countries so far. Analyzing inditexs other retail chains and zara will provide insight as to. This paper will try to reveal the key aspects of asc in fast fashion. The brand provides an alternative outlook to the fashion retail business model by rejecting media advertising and blowout sales, and maintaining the bulk of its production process inhouse rather than outsourcing to lowcost countries. Zara can move from identifying a trend to having clothes on sales of rs. Zara fast fashion case study solution essay example. This case describes the model and provides a number of challenges facing the company, with particular emphasis on its international expansion.
The zara casestudy demonstrates everything faect believes in it can give you an competitive advantage. 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. Analysis of zaras fastfashion retailing strategy with fit shelley e. From an operations standpoint, fast fashion requires a highly responsive supply chain that can support a product assortment that is periodically changing.
It for fast fashion case solution and analysis, hbs. Consider the case of zara, an exemplar of fast fashion. In this world of hot today, gauche tomorrow, no company does fast fashion better than zara international. Fast fashion though inditex a global specialty retailer, zara manufactures and sells apparel for women, men and children.
Salespersons at stores with pdas communicate and inform the cube so fast that enables zara to respond market in two weeks. Basically vertical integration and the ability to come up with a quickresponse is a key factor to zaras successful business model otherwise they would be no where. It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. In the 1980s, the fastfashion business model first emerged. Business model overview and research opportunities felipe caro. A short leadtime is important for zara to be able to offer the latest fashion in store at all time justintime. Describe zaras business model and its superiority over other competitors in the industry. Zarafast fashion case study the tale of a fashion dilemma. 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. Consumer behavior characteristics in fast fashiontina. Zara case solution and analysis, hbr case study solution. Zara is one of six brands, which was launched by inditex group. This study analyzes the business strategy of fast fashion through zara, a successful fashion brand from inditex spain. Scribd is the worlds largest social reading and publishing site.
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