This case study sets a context for both assignment 1 and 2. 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. Ways to combat competitors swot porters five forces industry analysis threat of new entrants low switching costs are low many other fashion retailers to choose from e. It was the most significant and one of the most prominent brand not just of. Zara is one of the most popular fast fashion brands which expand quickly in the worldwide fashion market. In this lesson, youll get an inside peek at zara and how its processes. Zara is a spanish clothing retailer 1700 stores 78 countries worldwide zara practices fast fashion trends moves from the runway to stores within weeks, as opposed to months. Gallien, clearance pricing for a fast fashion retailer operations research, 20.
Professor felipe caro prepared this case as the basis for class discussion. Ortega opened his first zara clothing store and the. The concept of sustainability and competitive advantage is considered with other business models and compared with successful and unsuccessful company. Costly to enter the market distribution costs are high.
Managing stores for fast fashion case study solution, zara. Staying fast and fresh, ucla anderson school of management. Strategic management involves all basic management functions like planning, organizing, leading, controlling, and all of these areas are illustrated by this case story. Suitability of locating inditex in galicia spain for the emergence of apparel retailing powerhouse. Fast fashion brought fresh air into the textile and apparel industries and it quickly struck a chord with the consumer. Overviewzara philosophy the original business idea was very simple. Staying fast and fresh by rebecca buchanan on prezi. Staying fast and fresh in early 2011, despite a successful decade of. Logistics management of zara a case study progressive. How zara took over the industry using fast fashion duration. Zara is a spanish clothing and accessories retailer based in arteixo, galicia. Jul 31, 2015 zara inditex is one of the successful fast fashion retailers under inditex group founded in 1975 owned by ortega a spanish businessman who owns 1830 stores in 82 countries and it is a vertically integrated retailer, controlling most of the steps on the supply chain designs, produces and distributes itself. Staying fast and fresh in early 2011, despite a successful decade of continued growth, fashion retailer zara s cfo miguel diaz was anything but complacent. Link customer demand to manufacturing, and link manufacturing to distribution.
The thesis discusses the development and evaluation of a modular system. It for fast fashion case solution and analysis, hbr. New product demand forecasting and distribution optimization. Instead of predicting months before a season starts what women want to wear, zara is what sells and what does not and continuously adjusts. Apr 28, 2015 executive summary this report aims to study the supply chain management and logistics of fashion retailer, zara, to boost customer value.
Case summary this case study is about how zara managing its retailing and logistics in becoming the most leading apparel retailer in the world. Zaras supply chain has undergone tremendous changes in order to sustain its competitive advantage in todays market zara has continually. Dec 01, 2011 zara is a spanish clothing retailer 1700 stores 78 countries worldwide zara practices fast fashion trends moves from the runway to stores within weeks, as opposed to months. Numerous cases had been written to better understand zaras operations, marketing, information systems, and overall strategy, but most authors alike had questioned zaras longterm sustainability. 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. In the past 10 years, inditex and more specifically zara had been. Download as docx, pdf, txt or read online from scribd. Zaras case study zara is a fashion label and fashion chain stores established in 1975 by the spanish group inditex own by amancio ortega.
On the average, 50% of its products are manufactured in spain, 26% in the rest of europe and 24% in asian countries. Given zara s scale, these results would translate to hundreds of millions in additional profit. Then by conducting semistructured interviews, we will analyze diamantine a moroccan fashion retailer brand fast fashion model and identify the way of its success from a supply chain management perspective. New style ranges are frequently introduced in the market and thus zara is moving parallel to market trends. The distribution channels are also built in multiple layers, each of which influences orderplacement, and. Even without massive advertising zara took attraction of the customers. Zaras fast fashion protocol is a model for retailers and manufacturers looking to streamline their supply chain management. Technology also helped keep zaras costs under control. Zara case solution, zara case analysis, zara case study solution, annual report part 1. Step 8 implementation framework the goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Staying fast and fresh ucla anderson case and teaching note. Inditex made its debut into the international retail market in 2000 and since then has expanded to have a total of six chains. Thus, a live pilot was approved and initiated by zara with the goal of confirming the simulated impact of the system under real conditions.
Of the many chains, the best and strongest of the bunch is zara. Executive summary this report aims to study the supply chain management and logistics of fashion retailer, zara, to boost customer value. Zara is one of six brands, which was launched by inditex group. Zara case study harvard pdf berton august 22, 2016. Nevertheless, zara s net sales reached 8,088 million euros in 2010, representing an increase of 14% over the previous year and right in line with the. It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. How is strategic management illustrated by the case history.
Staying fast and fresh the case centre, for educators. Doc zaras operations strategy wilbert makori academia. Jeremie gallien felipe caro london business school ucla. Zara aimed to offer fresh assortments of designerstyle garments and. Felipe caro, ucla anderson school of management, discusses his award winning case zara. One of the worlds largest fashion distributors eight sales formats zara, pull and bear, massimo dutti, bershka, stradivarius, oysho, zara home and uterque activities related to textile design, production and distribution. Zara is a wellrenowned name in the field of clothes and accessories, all across the world. The rest of the case focuses on inditex, particularly the business system and international. Strategic management is illustrated in this case story when mr. This report aims to develop and analyze the case of zara to explore zara s successful. Zara inditexs oldest brand, zara, was the pioneer of a new fashion category, called fastfashiontrendy catwalkinspired items manufactured quickly and sold at affordable prices. Learn what supply chain ecosystem and risk management is and how it can be a key component in business organizational success in this online course. Numerous cases had been written to better understand zara s operations, marketing, information systems, and overall strategy, but most authors alike had questioned zara s longterm sustainability. Zara case solution,zara case analysis, zara case study solution, annual report part 1.
Zara, the flagship brand of the spanish retail conglomerate inditex, was one of the leading retailers of fastfashion, churning out frequent inseason assortment changes of knockoffs of popular runway styles and trendy fashions. From a management and economics perspective, fast fashion has been the longawaited realization of \lean retailing with items produced in small batches and within short lead times. Nevertheless, zaras net sales reached 8,088 million euros in 2010, representing an increase of 14% over the previous year and right in line with the. As described in a case study of zaras supply chain, the company is vertically integrated, controlling most of the processes in its supply chain. It seems because of trendy, quality products and non traditional way of business model zara got indirect advertising through medias.
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. Demand in the harvard business model by xurxo garments it for heroclix and dice masters as well as pdf. The study is compared with the supply chain management and. Focuses on inditex, an apparel retailer from spain, which has set an extremely fast response for its zara chain. Case study solutions can also provide recommendation for the business manager or leader described in the business case study. Staying fast and fresh felipe caro, ucla anderson school of management, discusses his awardwinning case zara. The company has succeeded by breaking virtually every. The content does not engage the responsibility of the inditex group. This case study considers the international marketing tactics of zara and also documents some of the strategies of its.
Clearly, zara is riding two of the winning retail trends being in fashion and low prices and making a very effective combination out of it. Just within western europe, for instance, one study concluded that the british. Zara fast fashion case solution and analysis, hbs case study. With its dramatic introduction of the concept of fast fashion retail since it was founded in 1975 in spain, zara aspires to create responsible passion for fashion amongst a broad spectrum of consumers, spread across different cultures and age groups. This thesis describes how this challenge was addressed at zara, a leading retailer in the fast fashion industry. External analysis inditex with its flagship brand zara should look to enter new zealand market, which is still untapped by the compan. Strengths zara has been posting strong profitable returns till the end of the year 2001, whereas, the stock prices of the company has also been increased by 50%. Zara case study report case summary this case study is. Zara fast fashion case solution and analysis, hbs case. The company had received a lot of attention for its centralized distribution model. Zaras product development teams attended high fashion fares and exhibitions to translate the latest seasonal trends into the designs.
Jun 28, 2016 how zara took over the industry using fast fashion duration. Assuming a successful pilot, full system implementation is expected in 2011. Next to zara, the rest of the labels the groups own are bershka, massimo dutti, pull and bear, stradivarius, oysho, zara home, zara kinds and uterque. Zara case solution and analysis, hbr case study solution.
Next to zara, the rest of the labels the groups own are bershka, massimo dutti, pull and bear, stradivarius, oysho, zara. Salespersons at stores with pdas communicate and inform the cube so fast that enables zara to respond market in two weeks. 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. 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. 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. From a management and economics perspective, fast fashion has been the longawaited realization of \lean retailing with items produced in. Zara is one of the worlds most successful fashion retail brands if not the most successful one. At the pace stores are being added in the rest of the world, the.