Fast fashion hbs case analysis case study analysis. Zara fast fashion case analysis retail inventory scribd. It carries about 11,000 distinct items per year in thousands of stores worldwide compared to. Fast fashion excel file, subjects covered competitive advantage globalization supply chain management target markets time based competition vertical integration by pankaj ghemawat. Zaras fast fashion approach is quite different from other clothing retailers, which not only enables zara to respond to the market demand with less time compared to its competitors, but also enhances zaras capacity to anticipate the customers. The section following this introduction will present the case study of zara. Avinash shaw mohit chandra prabhat gupta sumeet agarwal sumona goash 2. On the higherend of the spectrum, selfridges is a unique case study as its applying pressure to designer brands to promote more transparency.
New product demand forecasting and distribution optimization. Zaras fast fashion business model zaras business model is basically based on the principle that it can sell medium quality fashion clothing at affordable prices. Zaras unique business model is driven by its supply chain capabilities. Zara fast fashion case analysis free download as word doc.
Describe zaras business model and its superiority over other competitors in the industry. Analyzing inditexs other retail chains and zara will provide insight as to. Business strategy of fast fashion a case study of zara request. Zara is a spanish clothing retailer 1700 stores 78 countries worldwide zara practices fast fashion trends moves from the runway to stores within weeks, as opposed to months. Zara is one of the most popular fast fashion brands which expand quickly in the worldwide fashion market.
Updated july 25, 2018 zara changes its clothing designs every two weeks on average, while competitors change their designs every two or three months. Zara fast fashion case solution and analysis, hbs case. Internationalisation, fashion retailing, branding, market entry, zara paper type case study 2. 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. Zara case solution and analysis, hbr case study solution. This strategy has led zara to create a climate of scarcity and opportunity as well as a fast fashion system. It for fast fashion harvard business publishing education. The 1997 attempt to renew fast track legislation abridged.
Ortega has started in 1963 with clothing factories and quickly realized that retailing has to be linked to the manufacturing to understand the customer requirements in the apparel industry. Marketing in fast fashion in mid springsummer season 20, oscar perez marcote, director of the zara business unit at inditex since 201, sat in his office preparing for a meeting with inditex ceo pablo isla tejera. It for fast fashion case solution and analysis, hbr. By owning its inhouse production, zara is able to be flexible in the variety, amount, and frequency of the new styles they produce. Zaras product development teams attended high fashion fares and exhibitions to translate the latest seasonal trends into the designs. Technology also helped keep zaras costs under control. Zara has cracked the formula to fashion retail success. Fast fashion case solution, focuses on inditex, a clothing store in spain, which has launched an extremely fast response system for its zara chain. Zara is one of the worlds largest and well renowned fastfashion company. Zara constantly monitors its customers preferences and can quickly adjust to changes, preventing extra inventory kiss of death in retailing. Scribd is the worlds largest social reading and publishing site. Should they maintain their current dosbased pos system or should they upgrade to a more modern system.
But for the fast fashion field, which should be separately treated from ordinary fashion field, seldom study in consumer behavior involves or pay attention to this newly growing market. It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. Agenda company overview zara business model key success factors swot analysis competitors analysis conclusion 3. Now some of those other retailers and other fast fashion companies are attempting to replicate zaras quick production cycle strategy.
While competitors falter, zara is undergoing one of the fastest global expansions the fashion world has ever seen, opening a store a day and entering new markets worldwide 68 countries so far. This fast fashion system depends on a constant exchange of information throughout every part of zaras supply chainfrom customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers to subcontractors, from warehouse managers to distributors, and so on. This brings answers to your zara fast fashion case study questions. External analysis inditex with its flagship brand zara should look to enter new zealand market, which is still untapped by the compan.
In 2003, zaras cio must decide whether to upgrade the retailers it infrastructure and capabilities. Zara case study help with harvard questions and answers. According to a study by cambridge university, people bought around 30% more clothes in 2006 than they did in 2002. While the firm supports eight brands, zara is unquestionably the firms crown jewel and growth engine, accounting for roughly twothirds of sales2. Eric slond is functional consultant and cofounder of faect bv.
As inditex, the parent company of zara, continues operations they face a growth challenge between developing their lesserknown retail chains or determining the most effective way to expand zara into further geographical regions, both within europe and around the world. This not only keeps zaras designers informed of fastchanging customer trends and demand, but also provides the company with insight on lessdesirable merchandise. Introduction zara is a wellrenowned name in the field of clothes and accessories, all across the world. The company has succeeded by breaking virtually every traditional rules in the. The thesis discusses the development and evaluation of a modular system. Zaras case study will be used, as an example, considered to be the pioneer in fast fashion industry nowadays. Digitalization of zara and fast fashion technology and. At the time of the case, the company relies on an outof. Zara fast fashion case study essay example for free newyorkessays database with more than 65000 college essays for studying. Zara case solution, zara case analysis, zara case study solution, annual report part 1. Dec 01, 2011 zara is a spanish clothing retailer 1700 stores 78 countries worldwide zara practices fast fashion trends moves from the runway to stores within weeks, as opposed to months.
An indepth case approach is adopted based on extensive secondary research. This report aims to develop and analyze the case of zara to explore zaras successful. Zaras parent company, inditex, reported a 7% increase in profits in 2017 and saw continued sales growth in its most recent quarter. The zara casestudy demonstrates everything faect believes in it can give you an competitive advantage. The case describes this value chain, concentrating on its operations and it infrastructure.
Moreover, zara always could provide new clothes with fashion every time. It for fast fashion 3 executive summary this paper presents an analysis of zara, an international retailer that follows a simple, yet unique. It for fast fashion case solution, in 2003 zara cio must decide whether the dealer to upgrade the it infrastructure and capabilities. Amancio ortega, zara founder believe in close relationship between retailing and manufacturing is key for apparel industry because of unpredictable demand. Our toolbox for supply chain challenges is the latest addition to the faect portfolio. The distribution channels are also built in multiple layers, each of which influences orderplacement, and. The outcome will be presented and discussed in the results section. Zaras secret for fast fashion hbs working knowledge. One of the worlds largest fashion distributors eight sales formats zara, pull and bear, massimo dutti, bershka, stradivarius, oysho, zara home and uterque activities related to textile design, production and distribution. Zara case solution,zara case analysis, zara case study solution, annual report part 1. Powered by zaras success, inditex has expanded into 39 countries, making it one of the most global retailers in the world. This report aims to develop and analyze the case of zara to explore zara s successful. The rest of the case focuses on inditex, particularly the business system and.
It is also the trading name of the case centre usa, a nonprofit making company. This study analyzes the business strategy of fast fashion through zara, a successful fashion brand from inditex spain. Feb 21, 2005 this fast fashion system depends on a constant exchange of information throughout every part of zaras supply chainfrom customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers to subcontractors, from warehouse managers to distributors, and so on. Women bought around four times more clothes than they did in 1980, and they also dispose more clothes each year. Consumer behavior characteristics in fast fashiontina. Pdf a case study on zara fashion monir hosen academia. Establishing zaras fast fashion apparel chains in galicia spain was a noble idea as the case study pointed that by late 1990s, only us exceeded western europe in terms of total retail sales where chains accounted for about 85% and 70% of the total sales respectively.
The case centre is a notforprofit company limited by guarantee, registered in england no 1129396 and entered in the register of charities no 267516. The main part of the case examines the key aspects in the internationalisation of zara, namely. Request pdf business strategy of fast fashion a case study of zara this study analyzes the business strategy of fast fashion through zara, a successful. 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 that basis. Case summary this case study is about how zara managing its retailing and logistics in becoming the most leading apparel retailer in the world. How could changing consumer trends affect fastfashion. They are the third largest brand in the garment industry and are a unit of inditex. How inditex beats the competition business model duration. 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. Zara s case study will be used, as an example, considered to be the pioneer in fast fashion industry nowadays. This allows zara to quickly sell products due to great fashion styles, limited availability which creates exclusivity, and low prices because of low costs of production. It for fast fashion zara, it for fast fashion zara.
Just within western europe, for instance, one study concluded that the british. Case study zara it for fast fashion business essay. A better fashion business model zara is one of the most well known brands in the world and is also one of the largest international fashion companies. No wonder zara manages so efficiently with delivering new items with latest designs twice a week to over 1,670 stores across the globe. Fast fashion case solution and analysis, hbs case study. Managing stores for fast fashion fast track derailed. The success of zara is driven by its competitive advantages of quick response over its rivals.
This thesis describes how this challenge was addressed at zara, a leading retailer in the fast fashion industry. Business strategy of fast fashion a case study of zara. Powered by zara s success, inditex has expanded into 39 countries, making it one of the most global retailers in the world. Zaras supply chain has undergone tremendous changes in order to sustain its competitive advantage in todays market zara has continually.
Zara case study report case summary this case study is. Zara s parent company, inditex, reported a 7% increase in profits in 2017 and saw continued sales growth in its most recent quarter. This paper will try to reveal the key aspects of asc in fast fashion. Case study zara fast fashion free download as pdf file. Basically vertical integration and the ability to come up with a quickresponse is a key factor to zaras successful business model otherwise they would be no where. Fast fashion case solution, focuses on inditex, an apparel retailer from spain, which has set an extremely fast response for its zara chain. It is because firstly the fast fashion is always considered as a small part of fashion industry, so the features of. Pdf zara is one of the most popular fast fashion brands which expand quickly in the worldwide fashion market. Zarafast fashion case study the tale of a fashion dilemma. Agasang,castro,cunanan,espiritu,mallari,sapnu,vitug. Internationalisation of spanish fashion brand zara introduction despite the increased volume of research on the internationalisation of retailing since the end of the 1980s burt and carraleroencinas, 2000, attention has been devoted. This case study aims to identify what operating system would be best for zara. Suitability of locating inditex in galicia spain for the emergence of apparel retailing powerhouse. Zara has developed a business model based on quick response, short deadline and a great choice of clothes at reasonable price.
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