Zara Success - 2041 Words

Arab Open University Faculty of Business Studies Business Functions in Context I B203A -- Second Semester 2015-2016 Tutor Marked Assessment Managing Marketing Channels: Zara | One global retailer is expanding at a dizzying pace. Its 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? Dell possibly? Although these two retail giants definitely fit the description, were talking here about Zara, the flagship specialty chain of Spain-based clothing conglomerate, Inditex. This dynamic retailer†¦show more content†¦In 1975, Amancio Ortega opened the first Zara store in Spains remote northwest town of La Coruna, home to Zaras headquarters. Having already worked in the textile industry for two decades, his experience led him to design a system in which he could control every aspect of the supply chain, from design and production to distribution and retailing. He knew, for example, that in the textile business, the biggest mark-ups were made by wholesalers and retailers. He was determined to maintain control over these activities. Ortegas original philosophy forms the heart of Zaras unique, rapid-fire supply chain today. But its Zaras high-tech information system that has taken vertical integration in the company to an unprecedented level. According to CEO Pablo Isla, Our information system is absolutely avant-guard. Its what links the shop to our designers and our distribution system. Zaras vertically integrated system makes the starting point of a product concept hard to nail down. At Zaras headquarters, creative teams of more than 300 professionals carry out the design process. But they act on information fed to them from the stores. This goes far beyond typical point-of-sales data. Store managers act as trend spotters. Every day they report hot fads to headquarters, enabling popular lines to be tweaked and slow movers to be whisked away within hours. If customers are asking for a rounded neck on a vest rather than a V neck, such an item can be in storesShow MoreRelatedSuccess Factor for Zara1108 Words   |  5 PagesWhat are the Key success factors of Zara? â€Å"The ability to respond to customer requirements on a timely basis has always been a fundamental element of the marketing concept.† Martin Christopher et.al. Hence, it is important being proactive in a market such as the fast-fashion industry which Zara is operating in, time is always a crucial factor. The fast-fashion market, amongst other things, is characterized by short lifecycles, high volatility, low predictability, and high-impulse purchases. ThereforeRead MoreZara s Success Model Of Zara2933 Words   |  12 Pages Contents 1) About Zara 2) Zara’s Success model 3) Zara’s Profit formulae 4) Zara’s Winning formulae 5) 5 Forces model 6) Zara’s Centralized distribution 7) Zara’s SWOT Chart 8) Competitive advantage 9) Vertical-Integration Vs Outsourcing Industry 10) Supply chain Comparison of Dell 11) Suitability of Vertical Integration 12) Conclusion 13) References About Zara Zara is company related to apparel retailing headquartered at La Coruna Spain. It is the top Brand of Inditex CorporationRead MoreEssay on The Zara Business Model2190 Words   |  9 PagesIntroduction Zara is the most popular and profitable brand of Inditex SA, the world’s largest retail group. The first Zara store was launched in 1975 in La Coruà ±a, Spain; a city which eventually became the central headquarters for Zara’s global operations. In the beginning the store was named Zobra, but after a while the founder and CEO Amansio Ortega has renamed it to ZARA. The first international Zara store was opened in 1988 in Oporto, Portugal. Since then Zara has expanded its operations intoRead MorePorters Analysis of Zara Essay1934 Words   |  8 Pagesrelevant literature. Zara has been the major pioneer of ‘disposable’ fashion; which makes up over 12% of the UK clothing industry. Zara outperforms its rivals in profitability, brand identity, and its successful business model. I have used Porter’s five forces model (Porter, 1995) to analyse the industry and Zara’s strategic position. I have applied the theory of this model and its determinants to my research of Zara; providing evidence to form strong conclusions. Zara faces competition fromRead MoreZara Operational Performance2583 Words   |  11 PagesQuestion: Identify the corporate strategy of the clothing retailer Zara and discuss how the five operations performance objectives support Zara’s corporate strategy. In addition explain the external benefits of these five objectives. Words: 2597 ZARA INTRODUCTION Zara is Spanish clothing and accessories retailer part of the holding group Inditex which is one of the world’s largest fashion groups. At the close of 2012, Zara had 1,925 stores in its eight sales formats in 86 markets in fiveRead MoreZara And Its Major Rivals1995 Words   |  8 PagesIntroduction ZARA in Spain By the early 1980s, the company began spreading beyond the borders of Galicia to the rest of Spain. In 1986, the brand had opened clothing stores in most of Spain s major cities including Valladolid, Zaragoza, Barcelona, Seville, Valencia, Madrid, Bilbao and Malaga The world s largest clothing retailer has been able to cope with the financial crisis better than most of its rivals, helped in part by the expansion of shops in fast, growing commercial centres and also byRead 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 Is A Modern Day Fashion Business Model960 Words   |  4 PagesZara is a modern day fashion business that takes an unconventional approach in their business model. Zara is one of the largest international fashion companies which belongs to the distribution group called inditex. They sell well made relatively cheap pieces of clothing that is always cut according to the latest fashion designed. Their customers are the heart of their designs, productions, distribution and sales. Just like all fashion companies, their primary goal is to be the numbe r one fashionRead 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 Fashion Clothing : Zara1024 Words   |  5 PagesINTRODUCTION ZARA FASHION CLOTHING: Zara is one of the retail sale format of Inditex group and well-known an international fashion clothing brand which is very famous for its apparel and accessories. Zara is a place where we can buy all the latest fashionable clothes in the world as they launches 10,000 designs every year. Zara is one of the Spain famous fashion clothing brand which is located in 70 countries in the world. Zara company is started earlier in 1975 by Amancio Ortega, a famous business