Strategic Management and Zara
Paper analysis of Zara - fast fashion
Structure of paper analysis:
∙Description of Zara
∙Achievement and core competence
∙Problem analysis
∙SWOT of Zara
∙Recommendation
●Description of Zara
Zara was founded in La Coruna in 1975, which is one of the largest international fashion brands of Inditex. At 1985, the Inditex became the holding company atop Zara and other retail chains. The customer is at the heart of the Zara’s business model. Zara use the same beliefs that quick response to customers, use of computers, and disintegrated decision making were important to build its business.
In the Inditex’s industry, Zara placed a big role in it. It had 550 stores and generated a major portion of Inditex’s sales accounting for 73.3%. Zara offers a great choice of fashion for men, women, and also children. Without advertising, Zara did really well in selling that following trends and styles.
Zara’s core business modal is vertically integrated, it specializes in speed and efficiency and the fast fashion trend. And the information technology is also in the core position, because Zara uses it’s personal application to do the business. However, in 2003, the CEO of Zara must decided whether to upgrade the retailer’s present system and risk the reliability with the current system, or continue with the old one...
● Achievement and core competence
－Speed (QR)
The respond of Zara is quickly for changing the fashion trends that is really hard to achieve and predict. Most of the companies need 6 months to chang their products, but Zara just needs 2 weeks. Zara wanted to deliver the fashion to the customers rather than persuading them through the marketing.
－Decision-making
Zara uses the decision-making that means not rely on a small group to decide what to make. It just gave the autonomy to all the employees to delegate on behalf of the company. The manager can decide what would be on sale
Structure of paper analysis:
∙Description of Zara
∙Achievement and core competence
∙Problem analysis
∙SWOT of Zara
∙Recommendation
●Description of Zara
Zara was founded in La Coruna in 1975, which is one of the largest international fashion brands of Inditex. At 1985, the Inditex became the holding company atop Zara and other retail chains. The customer is at the heart of the Zara’s business model. Zara use the same beliefs that quick response to customers, use of computers, and disintegrated decision making were important to build its business.
In the Inditex’s industry, Zara placed a big role in it. It had 550 stores and generated a major portion of Inditex’s sales accounting for 73.3%. Zara offers a great choice of fashion for men, women, and also children. Without advertising, Zara did really well in selling that following trends and styles.
Zara’s core business modal is vertically integrated, it specializes in speed and efficiency and the fast fashion trend. And the information technology is also in the core position, because Zara uses it’s personal application to do the business. However, in 2003, the CEO of Zara must decided whether to upgrade the retailer’s present system and risk the reliability with the current system, or continue with the old one...
● Achievement and core competence
－Speed (QR)
The respond of Zara is quickly for changing the fashion trends that is really hard to achieve and predict. Most of the companies need 6 months to chang their products, but Zara just needs 2 weeks. Zara wanted to deliver the fashion to the customers rather than persuading them through the marketing.
－Decision-making
Zara uses the decision-making that means not rely on a small group to decide what to make. It just gave the autonomy to all the employees to delegate on behalf of the company. The manager can decide what would be on sale