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INTEGRATION &
ZARA RETAILING
PRESENTED BYAMKOA, SALLY
LIN, XINQI
SENECHA, NIHARIKA
TOWERS, KATHLEEN
Example:
A firm that manufactures a product through an assembly process
High-end market
ABOUT ZARA
Super-responsive
Advertising
Integrated
Jose Maria
Castellano
Rios,
Inditex CEO
ZARAS COMPETITORS
Gap
Founded
US (1969)
Product
Price
level
Countrie
s
Smart casual
High
H&M
Zara
Spain
Sweden (1947) Japan (1984)
(1975)
Fashionable
Casual wear Fashionable
apparel
and essentials apparel
Lower than
Lower than
Inditex
Zara
-
41
44
Internalized
production, 90%
Producti from outside of Outsourced all
on
US
production
Strategi
Uniqlo
12
88
Outsourced
most of the
In-house
production
production
Focus on
Engaged in
developing
extensive
long lasting
advertising
and highand employed
quality
fewer
clothing, high
Vertical
& Manufacture
Immediate
reaction to trends
Just-in-time production
Significant amount of in-house production = rapid product turnover, low
lead time
Production
Ordering
& Inventory
Manual
ZARA
Design
6 months
Manufacture
3 months,
usually
outsourced to
other countries
Distribution
2-3 weeks by
sea to regional
centers and on
to franchisees
SWOT ANALYSIS
Strength
Weakness
Threat
Fierce competition
Possible imitation of goods
Economic downturn
Opportunity
2. Flexible in the
variety, amount, and
frequency of the new
styles they produce
3. Helps make
its
manufacturing
operations
more nimble
4. Create fast
fashion
system
5. Centralized
control, avoid
misunderstandin
g or conflicts
6. Manageable time
scheduling, focused
on one time
schedule
2. Manufacturer
Quality and perception issues
3. Logistics
Local transportation costs
4. Retail
Customer retention
Implications:
Innovation comes from
dialogue between new
technology and
strategy
Position of store
THANK YOU!
REFERENCES
(2004) Andrew Mcafee, Vincent Dessain, Anders Sjoman Zara: IT for fast fashion Harvard Business
School
(2005) "How Zara fashions its supply chain: Home is where the heart is",Strategic Direction, Vol. 21 Iss:
10, pp.28 3 http://www.emeraldinsight.com/doi/abs/10.1108/02580540510626709
Scozzese, G., PhD. (2013). From the supply chain management to the demand chain management in
fast fashion: Zara's winning model.International Journal of Management Sciences and Business
Research,2(5), 43-48. http://search.proquest.com/docview/1459583852?accountid=2909
Carugati, A.; Liao, R.; Smith, P., "Speed-to-fashion: Managing global supply chain in Zara,"Management
of Innovation and Technology, 2008. ICMIT 2008. 4th IEEE International Conference on, vol., no.,
pp.1494,1499, 21-24 Sept. 2008http://ieeexplore.ieee.org.proxy.libraries.uc.edu/stamp/stamp.jsp?tp=&
arnumber=4654593&isnumber=4654323
Qinghua Zhang, "Analysis on the Successful Case of Efficient Supply Chain in ZARA,"Wireless
Communications, Networking and Mobile Computing, 2008. WiCOM '08. 4th International Conference
on, vol., no., pp.1,4, 12-14 Oct. 2008 http
://ieeexplore.ieee.org.proxy.libraries.uc.edu/stamp/stamp.jsp?tp=&arnumber=4679487&isnumber=467
7909