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zara marketing case study
zara marketing case study
cultural values in business ethics
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Zara is one of the world-known fashion retail companies, which founded by Amancio Ortega and Rosalía Mera in 1975. Zara’s first store was located in Spain and start expanding their company in different countries, like the United Kingdom, Hong Kong and Korea. Now they have around 4,400 stores in 73 countries worldwide. Recently, Zara has been criticized for stealing other artists’ designs. According to the news posted on the guardian, an independent designer come from Los Angeles named Tuesday Bassen has argued that Zara using her pin and patch designs without any inquiries. She sent a legal letter to Zara but they have rejected her claims with the reason, saying ‘Bassen is not famous enough and her designs are lack of individuality. In the …show more content…
Is ‘Steal Art Thief’ happening because of their organizational structure or organizational culture? And how Zara evade the law and overcome this situation when customers found out parts of their products are …show more content…
Business culture contains values, belief and norms that shared by group of people within the organization. Schein (2010), addressed that there are three levels of organizational culture, including artefacts , espoused values and assumptions. It is important to examine does Zara’s daily operation match with its faith, what is Zara’s strong culture and weak culture. The mission statement of Zara is put customers at the first place, give them an exclusive choice of clothes by providing a quicker turnover of new stock than other fashion retailers. (Zara, 2016) Zara also builds up a good relationship with its customers, it is an important channel of getting feedback and suggestion from a wide range of people from different cultures and generations, to know what people desires and
...tside their work as well as its solutions for those who are facing the same problems. Zappos culture has proved its effectiveness in both human resource and in production . in human resource “Zappos Culture is the overall environment; space, attitude, freedom, management style, and actual physical surroundings which all work together to create a total milieu which attempts to make each individual better and happier on a whole, so that each one of us will then spread this to each other, our customers, and everyone we encounter. ” -Mike S. Employee since 2005 .After adopting these extreme methods and core values Zappos has become a very productive company employing more than 1500 employees and its revenue in by 2009 was estimated by 1 Billion dollars. (Zappos insights 2014)
Zara, as one of largest apparel retailer over the world, has changed the process of the whole fabric of the industry. Operation strategy of Zara involves having little stock, fast updating collections and communication within process of operation etc. Zara renew its products twice a week to pursue latest fashion, on the other hand other competitors only update once a season,
Zara sources fabric, other inputs, and finished products from external suppliers. It has purchasing offices in Barcelona and Hong Kong. This gives Zara a competitive advantage towards the costs of goods sold, as it can purchase from both Europe and Asia according to prices. Buying more from China in the future might reduce even more the costs of goods sold.
Zara is a famous Spanish apparel retailer based in Arteixo Galicia that provides product lines for women, men, and children. They are a high fashion retail that has a fast changing product lines. Zara is now represented in over 30 markets worldwide and operates over 500 stores. Zara has been operating under Inditex that was founded by Amancio Ortega in 1975. Inditex has been a global specialty retailer and has six apparel retailing chains including Zara. The six different chains include Zara, Massimo, Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho. In 2001, Inditex has generated a net income of 340 million Euros. Currently, Zara is the largest and most international retailer in Inditex’s chains. Zara mission was to always to provide fast and affordable fashion apparel for customers. Since the fashion industry is rapidly changing over the seasons, Zara wanted to provide customers with attracting design.
The concept of organizational cultures was first raised in 1970s, and soon became a fashionable topic. Organizational culture is the shared beliefs, values and behaviours of the group. Theorists of organizations believe that organizational culture represents the pattern of behaviours, values, and beliefs of an organization. Hence, studies around organizational culture have been seen as great helpful and essential for understanding organizations and their behaviours. Additionally, organizational culture has been considered to be an important determinant of organizational success. Therefore, leaders and managers pay more than more attentions on this topic, focusing on constructing and managing organizational cultures.
Zara’s strategy is to deliver up-to-the-minute fashions to its customers who are looking for the latest trends. In order to achieve this goal, all of Zara’s operations are developed around the tenants of speed and decentralized decision-making. All of Zara’s divisions work to decrease the time it takes to bring products from the design table to the sales floor to ensure customers find what they are looking for. By delivering new styles to stores quickly Zara is able to respond rapidly to changes in clothing trends and in the market. This allows the company to spend very little on advertising and still maximize revenue by constantly introducing new styles. This rapid merchandise turnover encourages customers to visit stores frequently as they know there will be new items available and to purchase items they like immediately since they know the offerings will be different the next time they visit...
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.
Zara is a fashion clothing store owned by Spanish fashion group Inditex. The first Zara store opened in La Coruna by Amancio Ortega in 1975. Major consumers included young, fashion forward people who resided in the city whose trends and demands were hard to forecast. Being in the apparel industry, he believed that retailing and manufacturing needs to be closely linked to meet consumer demands. What differentiates zara from competitors is the rapid turnover time and using the physical store as a source of information. The company was a huge success and the Zara chain opened an average of one store per day across the world since 2003 and currently having about 550 stores.
Company and Control Business: In this quick-fashion industry, the trade control process is critical. Since the lead time needs to be as little as it could be expected under the circumstances, subsequently there is no space for deformities. Zara is leading the pack for this angle, because of their much incorporated data reaction, by utilizing PDA to straightforwardly advise the home office about what is happening at the outlet. The report could be on a daily or hourly
Therefore their consumer promise is also the force behind the combination of their environmental and preservation guidelines used through the group 's supply chain. Zara, has been a groundbreaker in conveying new fashions, new designs, and new ideas rapidly to its stores. Zara’s tenacious thrust of on-trend products into the supply chain channel keeps its stores in stock on the latest fashions at lucrative prices. Lots of their new concepts have come from some of the fashion shows that just ended in New York, Paris and Milan will soon be on Zara’s racks.
In the textbook, “International Retailing” by Brenda Sternquist, the company focus on the company Zara, shows the company overview from the beginning when the brand started in Spain. The study describes the company’s international expansion, business systems, production, and distribution within the U.S. markets. Zara is part of a parent company called, Inditex Group which is centralized in Spain. At first, Zara started as a lingerie company and quickly expanded into three sectors of fashion as a women’s, men’s and children’s fashion brand. Zara takes pride in their private label, which keeps their brand image high and keeps advertisement costs low, which also drive their company profit margin. They also depend on the fast turn around in the products to keep their stores efficient and exclusive. Zara’s turn around time, a total of three weeks, keeps their customers motivated to shop in their stores often to get the trendiest and newest fashions. They have limited new items on their shelves and sell out within two days, which create exclusivity to customers and low amounts of markdowns or discounts on their items. Zara keeps a centralized distribution system and make about 10,000 items per year. Zara’s international expansion began in 1988 when they first opened a store in Portugal and used a strategy of expanding one store per country each year. During expansion, Zara really focused on opening flagship stores in major cities before expanding into nearby and smaller cities. All Zara stores in Spain are wholly owned stores, but the company has also incorporated joint ventures and franchises in specific countries such as Russia and China for parts of their expansion to enter markets. Currently, Zara is in 60 countries with ...
Zara realizes that millennial customers hate seeing someone on the street with the same sport coat or dress. The need to be unique and individual is rooted
...Zara has become the forefront of fast fashion and have become a fast fashion follower over the years. The approach of conducting mass communication in terms of market research has made Zara the most productive fast fashion retailer. They implement their design strategy in a different way to competitors. Their design stage is split into three product areas: women’s, men’s and children’s garments and designers and market specialists and buyers are co-located to try out prototype designs. (Slack, Chambers, Johnston, 2010) This allows customer reactions to new designs to be incorporated making Zara a successful fast fashion retailer. Zara also receives information from various store managers and sales assistants on their stores. According to (Inditex, 2013) “A non-stop flow of information from stores conveys shoppers’ desires and demands” contributing to Zara’s success.
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.
Organisational culture is one of the most valuable assets of an organization. Many studies states that the culture is one of the key elements that benefits the performance and affects the success of the company (Kerr & Slocum 2005). This can be measured by income of the company, and market share. Also, an appropriate culture within the society can bring advantages to the company which helps to perform with the de...