Zara Case Study Harvard Business School | Term Paper Warehouse

 

zara case study harvard

ZARA: Fast Fashion case study. Pankaj Ghemawat; Jose Luis Nueno Iniesta which has set up an extremely quick response system for its ZARA chain. special offers, and more from Harvard. Zara Harvard Case Study Solution and Analysis of Harvard Business Case Studies Solutions – Assignment HelpIn most courses studied at Harvard Business schools, students are . CASE: Zara: Fast Fashion HBS Executive Summary. 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 higher-class customers.


Zara - Case - Harvard Business School


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Are you sure you want to Yes No. Show More. No Downloads. Views Total views. Actions Shares. Embeds 0 No embeds. No notes for slide. Zara case study 1. What would be the alternatives, and how do you evaluate them? Use theVRIO framework as the basis of your discussion Founder and majority owner of the company is Amancio Ortega,famous Spanish entrepreneur. Today company has more than Each of the lines ismanaged by separate team which consists of Diression de Tiendas DTs.

We can freely say that Zara isa pioneer in fast fashion industry. The customer is at the heart of their unique business model,which includes design, zara case study harvard, production, distribution and sales through their extensive retail network.

The Zara case study is an interesting example on how one company can be successful on themarket. Zara is an apparel chain that works differently from zara case study harvard. The main characteristic is the vertically integrated model. Instead of relying fully onoutside partners, the company manages all design, warehousing, distribution, and logistics itself. The products are distributed in small batches.

Zara case study harvard that, the whole production is received and warehoused in the logistics centers in Spain before being sent to the stores. It does not matter where they have been produced, the main categorization is happening in Spain.

Materials and fabrics are kept in warehouses without exact colors or prints, due to be able to react quickly to market changes. If it turns out that the demand is higher for the particular product, the company is able to react quickly and produce additional items with a particular design or color2. Sometimes, transportation of merchandise is by plane; for example: clothes, which are produced in Asia, have to be transported in logistics centres in Spain, there categorized and again transported to the Asia.

Furthermore, many countries have small warehouses where they keep extra or returned goods3. Operations Inditex country offices represent headquarters at the country level, supervising and coordinating the operations of the various Inditex brands4. Zaras headquarter in Spain consists of three spacious halls for each of these centers. There designers work together with market specialists and planners for procurement and production. Also, here designers can quickly check initial drafts with their colleagues and discuss about new styles.

Therefore, prototypes can be examined on site. That kind of teams can work very efficiently; discuss about new fashion trends and take decisions within a few hours. Market specialists are intermediaries between designers and store managers, who can1 Notes on Zara case2 Notes on Zara case3 Zara: managing stores for fast fashion4 Zara: managing stores for fast fashion 5 6.

Each brand from Inditex Group has his own autonomy, zara case study harvard. They can quickly react to market requirements, act in a flexible way by making changes without asking permission of third parties. For example, Zara has power on operations, such as dying, labeling and packaging, all other manufacturing processes are made by Inditex employees. Zara has three product lines: zara case study harvard for children, women and men.

All product zara case study harvard go parallel with each other, but in an operational different way. Procurement, sales, design and marketing operations exist for each of these lines; just they are different and separated. Outbound Logistics At the beginning of each season, the whole merchandise is being distributed to the stores, in the quantities decided by the commercials.

However, when the production reaches the stores, managers are responsible for the order replenishments. It is their responsibility to decide how many units of each item to order and to do that, they are taking into consideration various data forecasts of customer demand, how many of that product the store had and already sold and etc.

European stores are receiving their deliveries within 24 hours; in Asia and America zara case study harvard deliveries take 40 hours6. Usually deliveries are done by trucks or planes.

Each week, stores are receiving about 12, units. However, sometimes it happens that they did not receive the whole order, because inventory at the logistics centers are limited.

In the beginning when the new merchandise was delivered, employees had to put tags on the products before they could reach store shelves, now tags are put by manufactory workers. This improvement puts some value on faster delivery of zara case study harvard production to the customer.

Due to the fact, that they are not outsourcing their manufacturing, company can quickly respond to the customers demand in fashion trends. Moreover, products are on the store shelves no longer than one month. People are more or less forced to buy the product, which they like due to the fear that next week it can be sold out. Products, which are not sold out are afterwards discounted. Zara has approximately eighteen percent of unsold merchandise, which is one of the lowest in the industry.

Comparing with other similar companies, Zara does not spend much money on promotion. However, it does not mean that the company is doing nothing.

Zara thinks that the store windows and the content is the most necessary advertising for them, zara case study harvard. Last, but not least interesting thing about Zara is that it owns the majority of its stores, but also does joint venturing and franchising in markets which are high risk and culturally distant.

Due to this fact, sales associates are required to help, when they see that customers need help or ask directly for help. Therefore, company is putting more zara case study harvard in managing products than customers.

Also, it is very important to make sure that customers do not wait in long queues. Zara zara case study harvard customers complain and try to respond as soon as possible. Support Activities Procurement Zara sources fabric, other inputs and finished products from external suppliers who are usually in low cost source markets. After certain designs are chosen for production, material is drawn from stock, cut, manufactured and delivered to company stores around 7 8. Zara also owns 20 other factories for internal manufacturing that apply just in time.

Zara developed way how to transfer information easier than before. They developed quick response systems in the industry. Company is using PDA Personal Digital Assistance in stores, which ensures a quick information flow within the company and creates value for the customers.

Human Resource Management All brands of Inditex Group have HR directors, who are supporting the stores on all HR issues, which are not linked to the operations and are organized by the geographical area. HR department is well developed in this company, zara case study harvard. Company zara case study harvard a lot of emphasize on training of their employees, so usually sales associates before starting to work have at least one week training, zara case study harvard.

In this type of company hierarchy exists similar to one like the pyramid model, zara case study harvard. Although thing that is interesting is that store managers have in their work autonomy. The idea is that make them understand the value of freedom and to motivate them and give an opportunity to feel like the owners of their own store.

This business practice, in turn, led to shorter lead times and introduction of more fashion styles. The implementation of the information and communications technology helped augment the business processes at Zara.

At the heart of infrastructure is the IT technology. The organizational structure supports IT technology. Each Inditex brand has regional networks of DT, equivalent to regional managers and known internally as DTs, who are responsible for the operations and performance of 15 stores and have to evaluate how those stores are performing.

 

Zara: IT for Fast Fashion

 

zara case study harvard

 

Jul 20,  · Case study Zara 1. ZARA is a Spanish clothing and accessories retailer based in Arteixo, Galicia. Founded in 24 May, by Amancio Ortega and Rosalía Mera. Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10, new designs each year. Zara was described by Louis Vuitton Fashion Director Daniel . CASE: Zara: Fast Fashion HBS Executive Summary. 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 higher-class customers. Zara Harvard Case Study Solution and Analysis of Harvard Business Case Studies Solutions – Assignment HelpIn most courses studied at Harvard Business schools, students are .