Zaras Supply Chain Managment Essay - 4787 Words

Zara: IT for Fast Fashion | Individual Case Essay | | BUS 510 Management Information Systems Dr. Y. K. Mortagy | | Mengyang Chen | Fall 2012 | | Table of Contents Abstract 3 Case Summary 4 Business Analysis 5 Generic Strategy 5 Five Forces 7 Value Chain Analysis 9 Implementations of Porter Models 10 Solution Evaluation 11 Cost analysis 12 Benefit Analysis 13 Conclusion and Recommendations 16 References 17 Appendix 18 Exhibit 1 18 Exhibit 2 19 Abstract This case essay provides a business analysis on Zara--the most profitable and well-known fast fashion brand under the world’s largest fashion distributor Inditex Group. The analysis will evaluate Zara by using Porter Models,†¦show more content†¦Business Analysis To help Mr. Salgado and Mr. Sanchez to solve this tough problem, we need to firstly understand Zara’s business model. I will use Michael Porter’s Generic Strategies, Five Forces and Value Chain to analyze Zara Company. Generic Strategy Among the three generic business strategies Dr. Porter identified, which are (1) broad cost leadership, (2) broad differentiation, and (3) focused strategy, I think Zara inherited both cost leadership strategy the differentiation strategy. Zara differentiates itself from the rest of the clothing industry not only by offering unique products but also by having full control of its operation processes. As Daniel Piette, LVMH’s fashion director, described as â€Å"Possibly the most innovative and devastating retailer in the world†, Zara truly has its unique business philosophy. (CNN Business, 2001) Zara meets its customers’ expectation by delivering the latest fashion lines at affordable prices the soonest it can. This concept itself is unique enough. Unlike high-end designer brands that offer limited exclusive lines at big prices, or like some other clothing retailers that offer trendy styles at low costs but poor qualities, Zara is able to bring the newest fashion into mass production and deliver them to people with a normal quality for very good prices. While most of the clothing or textile companies rely on outsourcing and cheap laborsShow MoreRelatedZara - Marketing Research1034 Words   |  5 P agesTask 1 zara marketing research Zara is a spanish chain store in Inditex group, one of the worlds biggest retail store in the world who are also owners of zara home. Zara is a fast industry bt its unique business model is based on innovation and flexibilty. they design and distribute a garment to the market in just 15 days. they always have new products but in limited supply. the customer feels there is an exclusitivity , since only a few items are on display even though stores are plannedRead MoreHM Marketing Audit2630 Words   |  11 PagesIndholdsfortegnelse Introduction 2 Problem statement 2 Scope/eliminations 2 Method 3 Collection of data 3 Internal analysis 3 The Value Chain 3 SMS-model 4 External analysis 4 PEST 4 Porter’s Five Forces 5 Competitor analysis 5 SWOT analysis 6 Conclusion 6 Literature 7 Enclosures 10 Enclosure 1 10 Introduction In 2009 Hamp;M and Zara were accused of using child labour (www.ilo.org). Even though Hamp;M is a huge company the scandal damaged the reputation of