| Table of contents |
Executive summary
1. Introduction
2. Retailing
2.2 Operational management issues of the Zara Fashion
2.3 Zara’s operation strategy and its contribution to the strategic success
3. Design
3.1 Reasons for other firm take longer to go from design to delivery
3.2 Using forecasting and planning methods to overcome these issues
3.3 How operation resource based decisions define Zara’s product development strategy
4. Production / sourcing
4.1 “Should we do” or “should we buy” decision of Zara fashion
4.2 Zara’s capacity strategy
4.3 Zara’s quality management strategy
5. Distribution
5.1 Speed as overriding concern for Zara logistics
5.2 How the operation resources of Zara be structured to meets market requirements
5.3 Supply chain risks can be identified in Zara distribution strategy
6. Zara online and future
6.1 Business operations decision Making, policies and strategies of Zara compare to other fashion retailers
6.2 Zara’s future process technology strategy
7. Conclusion
References
|
| Preview |
Executive summary
Zara fashion is a Spanish fast fashion retailer based in A Coruna. Zara is the biggest and oldest brand of the Inditex. Zara is responsible for its own stores, ordering systems, designers, factories and etc. Zara fashion provide fashion for women, children and men.
This report extensively analysis the operation of Zara under five areas; retailing, design, production, distribution, online market and future of the Zara. This report discuss the core competencies of Zara, operational management issues and operation strategy of the business. Further this is analyzed product development strategy, capacity strategy and quality management strategy of the Zara. Zara’s specialty is short response time to the market. This report discuss the reason for the rapid product replacement of Zara fashion and how Zara’s logistic support for that. Further this report evaluate supply chain risk of the business. Finally it is identified areas which Zara need to be developed in technological aspects and online business.
1. Introduction
Zara fashion is a fashion retail business based in A Coruna, Spain. Zara is one of famous brand of Inditex which was founded in 1963 by Amancio Ortego. Inditex has some other famous brand such as Massimo Dutti, Bershka, Stradivarius, Oysho and etc. Inditex has 6,104 stores in 86 countries including 1,751 Zara stores. 128,000 employees are working in Inditex. Inditex consolidated turnover in 2012 has recorded as € 2.3 billion. Each of the brand of the Inditex is responsible for their own stores, designing team, factories, sub-contractors, suppliers, distribution centers and etc.
Zara has built up a reputation as fast fashion retailer. Their business model is creating a value through beautiful, ethical, quality products with a complete cycle of life. Zara is responsible for every stage of the process from design and sourcing, to manufacturing and quality control, logistics and sales. Zara’s mission statement is “the world is getting smaller; we want the whole world to dress style, class and experience unique designs weekly”.
Zara’s business strategy focus on proving quality product for affordable price and very short response time to the market. According to Porter’s Generic Strategy, Zara’s strategy can be categorized as best cost strategy. (Porter, 2008). The best cost strategy focus on keeping costs and prices lower and offering similar products with comparable quality.
|
