Salespersons at stores with pdas communicate and inform the cube so fast that enables zara to respond market in two weeks. Industry conventional business model zaras business model. Fast fashion retailer zara is built on speed and agility. Describe zaras business model and its superiority over other competitors in the industry. Industry conventional business model zaras business model supply chain reliant on outsourcing production. Zara inditexs oldest brand, zara, was the pioneer of a new fashion category, called fast fashion trendy catwalkinspired items manufactured quickly and sold at affordable prices. Business processes process improvement supply chain management work force management. Zara is wellknown as its highfashion, lowcost business model. The reclusive spanish billionaire behind zaras fast. Powered by zara s success, inditex has increased in 39 countries, making it one of the worlds most complete retail. Hbs cases are developed solely as the basis for class discussion. By defying conventional wisdom, zara can design and. The result is a superresponsive supply chain exquisitely tailored to zara s business model.
In 2003, zaras cio must decide whether to upgrade the retailers it infrastructure and capabilities. Zara is one of six brands, which was launched by inditex group. Victor martnezdealbenizy april 25, 2014 to appear in retail supply chain management. The four companies shown above have very different business models. Zara inditexs oldest brand, zara, was the pioneer of a new fashion category, called fastfashiontrendy catwalkinspired items manufactured quickly and sold at affordable prices. Focuses on inditex, an apparel retailer from spain, which has set an extremely fast response for its zara chain. Hbs professor pankaj ghemawat and iese professor jose luis nueno prepared this case. Major contributors to the companys success include. Feb 21, 2005 2212005 spanish retailer zara has hit on a formula for supply chain success that works. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording, or otherwisewithout the permission of harvard business school.
It was the most significant and one of the most prominent brand not just of. Strategic supply chain management of zara fashion store. Case study about zara businessmarketing bibliographies. The concept of zara is to offer its product with fashion design and provides products at reasonable price d. The update covers significant developments, current executives, key readings, and basic financials. Discuss about the evaluation of zara business strategy. It has succeeded in the selling of fashionable clothes and accessories gabrielli, et al.
The result is a superresponsive supply chain exquisitely tailored to zaras business model. Suitability of locating inditex in galicia spain for the emergence of apparel retailing powerhouse. This article is based on the authors research on inditex and its competitors, as well as on data from the harvard business school case zara. Zara it for fast fashion harvard business school publishing. Zara is a small clothes manufacturer in the north west of spain and a pioneer of the fast fashion business model which eliminates fashion misses risk. Managing stores for fast fashion case solution and. Case study about zara businessmarketing bibliographies in harvard style. Zara has adopted a unique way in its scm by starting these branches when compared to other fashion retailers who do not personally own such kind of. Zara it for fast fashion after analyzing the case zara.
Analysis of the problems encountered in business processes and operations 4. Nov 14, 20 zaras fastfashion edge zara, flagship of the worlds no. Zara can design, produce, and deliver a new garment to its 600plus stores worldwide in a mere 15 days. Zaras product development teams attended high fashion fares and exhibitions to translate the latest seasonal trends into the designs. 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. At the time of the case, the company relies on an outofdate operating system for its store terminals and has no. Mcafee, andrew, anders sjoman, and vincent dessain.
Nov 23, 2009 business processes process improvement supply chain management work force management. Fashion retailer zara has achieved spectacular growth via a distinctive designondemand operating model. This made inditex gain a competitive advantage, which is quick response to the market requirements. Inditex is an example of a company that is highly effective at driving alignment between its operating model and its business model. Managing stores for fast fashion harvard case study solution and hbr and hbs case analysis. But zara often beats the high fashion houses to the market and offers almost the. Fast fashion 2006 this case flash forward provides an update on inditex and zara since they were covered in the related case study zara. To better understand the business behind the fashion, she needs to consider a key business concept that helps drive success at companies like zara. A business model, offers saez viadero, refers to a business that is very well organized to serve its customers, and establishes the standard for quality within the. At the beginning of a season, a typical retailer would have placed orders for at least 80 percent of the garments it will offer, according to a harvard business school case study on zara. It for fast fashion harvard business publishing education. It for fast fashion 4 case synopsis zara, one of the worlds.
Harvard business school, 2006 business logistics 35 pages. Rather than focusing on the actual factory owner, it evaluates the broader structural and institutional factors, plus a particular western retailer strategy of fast fashion, that together explain the practical inevitability of such tragedies. The companys strategy involves stocking very little inventory and updating collections often to deliver the latest emerging fashion trends. The global fashion retailer inditex, best known for its zara brand, continues to chart the course of fast fashion through the intimate alignment between its operating and business models. Zaras secret to success retail deakin business school. How zara used lean to become the largest fashion retailer. The fast world of fast fashion an npr series looks at the fast fashion business, the people behind it and its environmental impact. Highly responsive, vertically integrated supply chain time to market high due to outsourcing. Zara can move from identifying a trend to having clothes on sales of rs. Case summary this case study is about how zara managing its retailing and logistics in becoming the most leading apparel retailer in the world. Business model overview and research opportunities felipe caro. Zara is wellknown as its high fashion, lowcost business model. Zara fast fashion summary of harvard case study free essays.
Zaras secret for fast fashion harvard business school. Fast fashion harvard business school multimedia case 9703416. How zara took over the industry using fast fashion duration. Nov 12, 20 it is the flagship chain store of the inditex group. Inditex is the parent company of six different apparel retailing chains that includes massimo dutti, pull and bear, bershka, stradivarius, oysho, and, most importantly, zara. Zara s fastfashion edge by susan berfield and manuel baigorri november 14, 20 arteixo is a small town in northwestern spain near the atlantic, surrounded by fishing villages.
Andrew mcafee is an associate professor at harvard business school. It is the flagship chain store of the inditex group. The other inditex chains were too small to justify such investments but generally did emphasize reliance on suppliers in europe rather than farther away. Zara case study report case summary this case study is. Fast fashion case solution, focuses on inditex, an apparel retailer from spain, which has set an extremely fast response for its zara chain. This report included in my global lotistics class of kyushu business school. Through its just in time or lean business model, zara breaks the fashion supply chain rules by holding low stock and updating its collections continuously. This case describes this model and outlines a number of challenges facing the company, with a particular emphasis on its international expansion. Inditex owned much of the production and most of its stores. The reclusive spanish billionaire behind zara s fast fashion empire.
Its global profile suggests that more than 60% of the sale for zara comes through women while 25% sales is made from the sale male of clothing while remaining 15% sales is covered by children section. At the time of the case, the company relies on an outofdate operating system for its store terminals and has no fulltime network in place across stores. Quantitative models and empirical studies, 2nd edition, narendra agrawal and stephen a. Today, it has become the central headquarters for zara. New style ranges are frequently introduced in the market and thus zara is moving parallel to market trends. Business strategy of fast fashion a case study of zara. Harvard business school in 2003, zara s cio must decide whether to upgrade the retailers it infrastructure and capabilities. Its been a meteoric rise for ortega, the inventor of fast fashion who has changed the way we shop forever. Zaras secret to success retail its pricing strategy t1. Zara case study harvard business school term paper warehouse. Just in time was widely used as a business term in the 1980s but from 1990 onwards the term lean has been used across most industries to describe this methodology. Fast fashion spanish retailer churns out 11,000 new items every season and delivers new goods twice a week. Zara it for fast fashion harvard business school publishing cambridge. Zara can design, produce, and deliver a new garment to its.
Sep 12, 2018 fast forward 40 years and zara s arrival in hawaii marked the companys 7,000th store. Technology also helped keep zaras costs under control. Instead of predicting months before a season starts what women will want to wear, zara observes whats selling and whats not and continuously adjusts what it produces and merchandises on. Nov 23, 2015 i would like to published my report of zara. This paper seeks to examine the various actors responsible for the recent tragedy at a clothing factory in bangladesh. Dec 09, 2015 zara is a small clothes manufacturer in the north west of spain and a pioneer of the fast fashion business model which eliminates fashion misses risk. Fast fashion case solution and analysis, hbs case study. Managing stores for fast fashion case solution, pablo isla, chief executive officer of zara wanted to improve operational efficiency in the management of the. Its the headquarters of zara, the company that introduced the idea of fast fashion some two decades ago, then developed. Focuses on inditex, an apparel retailer from spain, which has set up an extremely quick response system for its zara chain. The case is based on the retail chain zara located in spain, it is regulating under the global value chain, and it is offering premium quality products for both the middle class and the higherclass customers. The business system that had resulted see exhibit 12 was particularly distinctive in that zara manufactured its most fashion sensitive products internally. It for fast fashion describe zara s business model and its superiority over other competitors in the industry zara is one. But in 2002, faces important questions about future growth.
It for fast fashion based on harvard business school case study. Zaras secret for fast fashion hbs working knowledge harvard. Fast forward 40 years and zara s arrival in hawaii marked the companys 7,000th store. Young people pursue fashion but dont have enough money. Harvard business school focuses on inditex, an apparel retailer from spain, which has set up an extremely quick response system for its zara chain. Fashion retailer zara has achieved spectacular growth via a distinctive design ondemand operating model. Please do not distribute without the authors permission.
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