Fashion Industry Analysis Of Zara

830 Words2 Pages
bulb-icon

Recommended: Business analysis of zara

The Fashion Industry Strategic management practices can be effective if the people in the management seat are eloquent to the fact that fashion industry is composed of different products and markets trends where element of style is short lived. The following features define fashion industry: the products in the fashion industry are short live as they are mostly designed to fulfill the mood of a specific moment. In this essence, the products are seasonal which make them short lived which are measured in weeks or months. Given the demands of the textile consumers, the products are not stable or linear as they are managed by weather, media trends, celebrates and other icons (Lee, 2016). Textile and clothing industry has taken a global …show more content…

This has been possible through a remarkable and strategic supply chain of the company. Design, purchasing, production, distribution, and retailing are arranged in very unique way. Zara produces clothes that are not so much dissimilar to other manufacturers, but they beat them to the market (Sartal et al., 2017). The company has employed a policy that use less expensive fabrics, which has helped them to dispose the products at a lower price as compared to other competitors. Pricing policy at Zara has given the company a resounding marketing advantage that has helped it compete effectively in the congested industry. Supply chain has given the company due competitive advantage and it has been able to maintain it by design, warehousing, distribution, and logistics functions (De Jorge Moreno, & Carrasco, 2016). Zara has made this possible by design the organization, operational procedures, performance measures and even office configurations that has helped the flow of information and product easy. Zara manufacture its products in small quantity, which make the products, last in the stores for a small time and give it easy to manage and change the fashion depending on trends. To help the company meet its distribution and customer demands, the company has implemented a scheduling techniques, centrally managed inventory, reduced design cycle time, strong it system and logistics and distribution channels that were

Show More
Related

  • Analysis Of The Fashion Industry: Free To Be An Individual

    1411 Words  | 3 Pages

    Berry, Hannah. “The Fashion Industry: Free to Be an Individual.” The Norton Field Guide to

    Read More

  • Zara Fashion

    2436 Words  | 5 Pages

    1)     With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency? Note that while the electronic version of Exhibit 6 automates some of the comparisons, you will probably want to dig further into them?

    Read More

  • Zara: Information Technology For Fast Fashion

    863 Words  | 2 Pages

    Analysis & Recommendation: Zara’s main strategy is the ability to respond very quickly to the demands of target customers which called for identifying trends of the customer in advance. The company has been able to identify the trends and meet the demand with the help of its autonomously organized structure and its effective value chain systems. The present system followed by Zara has been very effective and very easy to maintain, which as a result has persuaded the company to continue without any change in the present system so far. The problem that Zara faces right now is that the system that they use, P-O-S (Point of Sale terminals), runs on DOS which Microsoft does not support anymore and any hardware change in the POS terminal will not be compatible with the current POS software. Although the sense of urgency for the change may not be that high, investing in IT infrastructure is a must as MS Dos is an obsolete technology and there is no contract or guarantee from their POS terminal vendor that they will continue supplying the same terminal with out much changes in the hardware for any specific period of time, therefore change is unavoidable. The other main issue that Zara faces is that the stores don’t share inventory information electronically and hence inventory management becomes highly difficult and manual. The decision making process is based on the judgment of employees throughout the company instead of relying on a small set of decision makers; the majority of the decisions were made by store managers and as a result they placed orders for the items rather than simply accepting and displaying what headquarters decided to send them.

    Read More

  • Zara Case Study

    684 Words  | 2 Pages

    b) Zara can focus on expanding and increasing the number of outlets in Asian countries such as China and India. The scope of development is very high and the demand for fashionable clothes is increasing at a very fast rate. But it will have to focus on other local competitors who provides the latest fashion at a cheaper rate. As Zara is a known brand, so it would be easy to increase awareness among the consumers through advertisement, promotions and celeb endorsements.

    Read More

  • Zara Business Analysis

    1501 Words  | 4 Pages

    The fundamental business strategy of Zara is very simple which is linking customer demand to manufacturing, and liking manufacturing to distribution. Zara has been running their business in fashion industry which is susceptible to seasons and quick changing customer tastes. Zara has been approached to and considered their business as a perishable commodity business just like a fresh baked cake or bread to be consumed quickly.

    Read More

  • Zara & Spain

    1696 Words  | 4 Pages

    Contrary to must companies, Zara delivers new products twice a week to all their companies around the world. The made this possible because they control manufacturing closer than must companies, they act as both the supplier and the retailer. Instead of outsourcing to Asia or countries that production is cheaper, they have 14 highly automated Spain factories that create the foundation of their products. Then, these unfinished products are sent to their more than 300 small network partners in Portugal and Galicia to handle the rest of the process. By, not outsourcing the have the benefit of making any changes to their products depending on customer’s preferences; they have the ability to react quickly, designing new styles and getting them to the stores while the trend is still peaking. So it can be said, that supply chain management is the key to Zara success.

    Read More

  • Essay On Marketing Segmentation Of Zara

    613 Words  | 2 Pages

    2.4 Segmentation: Some of the important bases for segmenting consumer markets are Demographic, Geographic, benefits, Psychographic and Usage rate segmentation. Geographic segmentation is the priority of Zara. It is a global brand and its supply chain management is very much perfect. It helps Zara in getting the latest trends into stores in three weeks’ time, based on consumer preferences. It’s a Spanish brand, so it would be a better option for Zara to open more stores in European countries.

    Read More

  • Prada: A Case Study

    2831 Words  | 6 Pages

    Miuccia Prada once said that “What you wear is how you present yourself to the world, especially today, when human contacts are so quick. Fashion is instant language”. Miuccia Prada and the Prada brand have grown from humble beginnings making quality leather goods to a public traded company with a current market capitalization of over $26 billion (USD) . With the development of Prada as one of the world’s premier luxury brands it provides an excellent case study to examine how strategy paved the way for the success of the Prada brand. First, an examination of Prada’s strategic positioning against luxury brand rivals Louis Vuitton Hennessey Moet (LVHM) and Kering (Gucci). The acquisition history of Prada will be reviewed, where some preliminary conclusions can be made about what has been contributing factors to both the successes and failures. Then finally, an evaluation of what the future holds for Prada and the sustainability of its competitive advantage.

    Read More

  • Fashion Case Study: Marks And Spencer And Zara

    1077 Words  | 3 Pages

    The business model that sets Zara apart from other clothing retailers is how rapidly the company changes stocks and releases new product lineups. The company averages 12-16 collections annually which equates to more than one lineup a month. Due to stock being limited and the rapid production Zara brings forth, their items are viewed as exclusive promoting further business. Their customers are happy knowing that their specific article of clothing is more “rare” due to only having an average of a two-week window to purchase the clothing. The company specifically targets current trends and has them in the store within 30 days. This maintains the brand’s uniqueness and relativity in fashion.

    Read More

  • SWOT Analysis: Zara´s Managers

    621 Words  | 2 Pages

    Inditex is the largest fashion retailer in the world, it has seven chains, they are Zara, Pull and Bear, Massioino Dutti, Stradivarius, Bershka Oysha and Uterque. SWOT analysis might help the executive to understand the opportunities and threats in the environment with the strengths and weakness of Inditex; thus help the executive to evaluate existing strategies and formulate the new master strategies (growth strategy, stability strategy and retrenchment strategy). Such as allocates resources, address the overall direction, support to its retail concepts, and international expansion and new concepts in existing markets. For example, SWOT analysis showed that there are competitors are working to be faster at fast fashion, it should be threatened Zara’s leading advantage, therefore the executive exploit other strategies the keep the advantage in the market, such as develop new method to store managers to order and merchandise display faster, and adding the new shipping routes for products; and jump into online retailing.

    Read More

  • Essay On Apparel Industry

    990 Words  | 2 Pages

    The fashion apparel industry is very challenging and consistently changing; trend and consumers preferences change almost every month. Therefore, companies have to respond to changes in the market, and changing consumer preferences, to remain successful and to sustain their share in the market. One growing phenomena in apparel industry is fast fashion brands such as H&M, Zara, Mango and Top shop, which means “low-cost clothing collections based on current, high-cost luxury fashion trends—is, by its very nature, a fast-response system that encourages disposability” (Fletcher 2008) “A formerly standard turnaround time from catwalk to consumer of six months is now com- pressed to a matter of mere weeks by such companies as H&M and Zara, with heightened profits to match “(Tokatli 2008). Zara ability to react quickly to changes and customer fashion needs by focusing on the latest fashion trends instead of creating new designs, so Zara is a trend chaser, which helps Zara to save costs on product development and design. Using information technology (IT) becomes an important tool that helps fast fashion companies in capturing and analyzing real-time data to drive growth and anticipate better consumers preferences. Zara has successfully used high-integrated information technology system to dominate the retail fashion and...

    Read More

  • Fashion Industry Case Study

    1441 Words  | 3 Pages

    Everybody is constantly trying to find their own perfect style and trend as cloths are not just items of decorations, but a way of self-expression. Fashion designers in Nigeria help people to share their unique styles with others. People experience inexpressible pleasure when putting on beautiful and original clothes; However, it is even more pleasant to create such works of art on your own. This is why many Nigerians wish to study in one of the top fashion schools in the

    Read More

  • Essay On Zara

    783 Words  | 2 Pages

    Zara, founded in 1975 by Amancio Ortega, is the flagship chain group of the Inditex group and is one of the world’s most successful fashion retailers with 2000 stores found in 77 countries. The organizational structure chosen by Ortega is a flat structure which has few levels of middle management between executives and employees. Ortega rejected stringent organisational structures in favour of a more flexible approach which flourishes within the highly integrated, fast and efficient form of communication between its global network of outlets and central hub of operations in Spain. This reduces supervision and gives the staff at Zara more involvement in the decision making process, making them more productive. This structure is typically used in smaller organizations but has proved to be successful for Zara.

    Read More

  • The Role of Fashion Promotion Within the Fashion Industry

    1758 Words  | 4 Pages

    ...ning what is happening today culturally, socially and economically. By applying our research, we can improve our forecasts of what may happen next in fashion promotion but there is much greater variability in the factors affecting fashion trends today, which makes prediction even more difficult. The usual measures do not necessarily suggest the next fashion styles. This allows more extreme fashion to become more main stream as fashion buyers will take greater risks to surprise the competition in the hope of establishing a new order through strong brand differentiation.

    Read More

  • Essay On Costume Jewellery

    620 Words  | 2 Pages

    This industry has generally always remained in brisk business despite a downturn in 2009 that led to a fall of a whooping $18 billion business globally. The growth of Fashion Accessory business in India, specially, has been generally lukewarm since then. A company which was working under this sector was considered as useless during this t...

    Read More

More about Fashion Industry Analysis Of Zara

Open Document