Zara Case - 620 Words

DEPARTMENT OF ACCOUNTANCY UNIVERSITY OF ILLINOIS MEMORANDUM TO: Mario Schijven FROM: Yue Ma DATE: September 28th, 2015 SUBJECT: 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 by each primary and secondary activity in which it has a substantial value –creating activity. The primary activities are based on Zara’s purchase supplies and inbound, operations, distribution and outbound, sales and marketing, and profit†¦show more content†¦This turnover will also force to encourage customers to come to Zara stores more frequently and buy new products. According to the case, no any style can stay in the store for more than 4 weeks. There fore, this action can help company to sell more new productions at full prices. Case from: Pankaj. G and Jose. N (2006), ZARA: Fast Fashion, Harvard Business SchoolShow MoreRelatedZara Case3845 Words   |  16 Pages1. With which of the international competitors listed in the case is it most interesting to compare Inditexs financial results? Why? What do comparisons indicate about Inditexs relative operating economics? Its relative capital efficiency? We think HM’s financial results are the most interesting one to compare with Inditex’s. HM is the most important and largest competitor of Inditex and due to their similar background, both being large international European apparel brands and offers fashionableRead MoreZara Business Case15365 Words   |  62 Pages9-703-497 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 byRead MoreZara Case Study1656 Words   |  7 Pages3.1 HISTORY and BACKGROUND ZARA is the flagship chain store for the Spanish Inditex Group owned by Amancio Ortega, who also brands such as Massimo Dutti and Bershka. It was first open in 1975 in La Coruna, Galicia, Spain. Originally a lingerie store, then the product range expanded to incorporate women’s fashion, menswear and children’s clothes (5). The international adventure began in 1988, opened its first foreign store in Oporto, Portugal. The market growth remained mysterious and it kept growingRead MoreZara Case1472 Words   |  6 Pagesexpected to show high resistance in response to it. Even though Zara has a decentralized decision making process, the retailer’s IS department exercises absolute autonomy on the IT infrastructure and design. The fact that â€Å"only one person had left the department† in the past 10 years further confirms that the retailer is suffering from cognitive and action inertia, and thus creating a huge barrier for such upgrade. Nevertheless, Zara should still perform such upgrade in the long run. Q1b. ShouldRead MoreZara Case Study1975 Words   |  8 PagesEducation Ltd. Company Case 19 Zara – the fast and furious giant of fashion One global retailer is expanding at a dizzying pace. It is on track for what appears to be world domination of its industry. Having built its own state-of-the-art distribution network, the company is leaving the competition in the dust in terms of sales and profits, not to mention speed of inventory management and turnover. Wal-Mart, you might think? No! Tesco, possibly? No! The company is Zara, the flagship specialty chainRead MoreZara Case Study1037 Words   |  5 PagesZARA Case Assignment 1. With which international competitor listed in the case is it most useful to compare Inditex’s financial performance? What do comparisons indicate about Inditex’s operating economics? Why? There are 3 key international competitors mentioned in the case: The Gap, Hamp;M and Benetton. The Gap‘s production was internationalized with more than 90% of it outsourced outside of the United States. Its stores, however, were US centric. Therefore, The Gap’s strategy was to ownRead MoreZara It for Fashion Case Study1595 Words   |  7 PagesExecutive Summary Zara has relied on Personal Digital Assistants (PDA’s) and Point of Sales (POS) terminal operating on Microsoft DOS which are not linked to the headquarters or other stores for its daily transactions. Although, the system has proved to be stable and reliable over time, it has become obsolete and cannot be supported by the providers. I recommend that the company invest on a new system like Windows, UNIX or Linux operating system which will enhance connectivity and flexibilityRead MoreZara It for Fast Fashion Case Notes903 Words   |  4 PagesZara 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 Zara’s information technology. The key concern is the outdated operating system they use for their point of sale (POS) terminals. Should they purchase the current POS machines from their vendors so that they can support their needs in case the vendor changes their machines to new technology? Or should they move to using new operatingRead MoreZara Case Study Answers2011 Words   |  9 PagesExplain the data collected by Zara to predict the trend. What makes the middle aged mother to buy cloths in Zara while the daughter aged in mid 20s buys Zara clothing? Because it is fashion able and up to trend. By collecting data and focusing on shorter response times, the company ensures that its stores are able to carry clothes that the consumers want at that time. Zara can move from identifying a trend to having clothes in its stores within 30 days. That means Zara can quickly and catch a winningRead MoreCase Study 2: Zara International824 Words   |  4 PagesZara International is considered a high end clothing store that is affordable. Due to its quality in fashion, low prices and immediate availability, popular stores such as Gap and HM fail to keep up with Zara’s success. Zara’s well known tactic of fast fashion has separated them from their competition. The ‘fast fashion’ objective is to distribute top trends of fashion within the runway to customers by selling them in local stores. Zara has been able t o achieve the fast fashion perspective by hiring