StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Zara Fashion Company - Case Study Example

Cite this document
Summary
This paper, Zara Fashion Company, is a report on Zara Fashion Company case study with the focus of providing strategic option and recommendations. The paper begins with introduction of Zara Company in which this case study is based on…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
Zara Fashion Company
Read Text Preview

Extract of sample "Zara Fashion Company"

Contents INTRODUCTION 3 ZARA STRATEGIC ANALYSIS 3 Industry Overview 3 The PESTEL analysis 5 Porter’s five forces 6 Product Lifecycle 7 ZARA INTERNAL STRATEGIC AUDIT 9 Financial performance 9 Value-chain analysis 15 Designs 16 Infrastructure 17 Human resource management 17 Technological development 17 Procurement 17 Business operations 18 Sales and marketing 18 Business model 18 EXTERNAL & STAKEHOLDER ISSUES AFFECTING ZARA CORPORATE IMAGE 19 Corporate social responsibility 19 Organizational management and culture 21 ZARA STRATEGIC OPTIONS 22 RECOMMENDATIONS 22 SUITS ANALYSIS 24 CONCLUSION 26 This paper is a report on Zara Fashion Company case study with the focus of providing strategic option and recommendations. The paper begins with introduction of Zara Company in which this case study is based on. Zara company strategic analysis is provided in which the external environment is studied using PESTEL model. Porter’s five forces model is also adopted in studying the fashion industry that Zara is operating in. Internal strategic audit is provided in which various aspects of the organization is analyzed including financial performance, value chain analysis, design and infrastructure. The internal analysis provides an insight on Zara strength as well as is viability. External and issues that concerns the company stakeholders is studies. These factors notably affect Zara corporate image and the relationship among the stakeholders. From this analysis in the case study, strategic options are provided and the recommendations put forward. The strategic options and recommendations provided can be adopted and integrated in Zara business model and all of its operations so as to achieve competitive advantage, strategic positioning in the industry and effectiveness. INTRODUCTION Zara clothing company has grown over years since its establishment in 1975 becoming one of the famous companies in clothing and fashion industry. Zara has become the best known fashion brand in Spain as well as globally. This is attributed to its flagship brand of £2.5 billion holding group Inditex. Currently the company has emerged to be world fastest growing manufacturers of fashion clothing. The company has over 2000 stores globally and likely to double in the coming years. Within five years after its establishment the company had a spout of growth extending its operations over the principle cities in Spain. A key major breakthrough of its growth came after its venture into international markets under Inditex Corporation. Trendy Zara is the flagship brand for Europe's fastest-growing apparel retailer. This growth can be argued to be attributed by company adoption of a sustainable breakthrough strategy. This has enabled the company to become world’s largest fashion group with a variety of fashion brand names such as Zara Kids, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Lefties and Uterqüe. ZARA STRATEGIC ANALYSIS Industry Overview Fashion and clothing industry is among the expanding most sectors in many economies in the world markets. This industry notably in Spain and its multinational ventures is characterized with high competition and change in designs and fashion affecting consumer demand in the key underlying companies. This industry has three major competitors both locally and internationally and these companies include Zara Company holding 9.8% of the market share, H&M Hennes & Mauritiz AB commanding 2.9% and Mango Market share being 2.6%. By 2011 the company is valued at $33.38, since the economic recession this industry forecasting a growth of 10.5% as from 2010 to 2015. It is also important to note that Spain in the fourth largest producer of textile. The industry majorly targets men and women aged 18-35 years old. These companies strive to provide affordable prices to the targeted cosmopolitan and young men and women interested in upscale clothing. This industry and its core markets majorly operating under European union and European commission need to ascribe to specific design protections mandated by the European commissions regulation on community design (Vernimmen 2009). Companies in this industry each day introduce new adorable designs competing majorly on cost affordability. Most of the markets are experiencing economic downturns and lack star styles. In international markets, there are various government regulations, diverse language, and vast culture and unemployment rates (Martinez 2008). To ascertain this strategic analysis models are used in the evaluation of the company various aspects attributed to both internal end external environmental that the company various subsidiaries operate.It is notable that Zara is dominant in Spain; this has been attributed by their effectiveness as far as working environment, competitive pressures, industry surrounding and other effective factors. This analysis identifies opportunities and potential risks prevailing in the underlying environment that Zara Company has its operations. The PESTEL analysis Political The state legal authority develop political environment therefore, the government is a silent factor in a business. Notably is the support of the policies formulated in an industry. Zara is majorly operational in Spain and one distribution centre serving Europe. Favorable political support in most international markets has enhanced its expansion. Attributed to safe and predicable economies in Europe have favored Zara expansion in most European countries. Economical factors Zara majorly deal with one currency and the economic conditions in the global markets are fluctuating. Zara continue to dominate in its markets since it has not been affected by recession. Zara notably assess and evaluate country economic condition and that Zara uses safer currency from its deals. Spain and most European countries have stable market and predictable demand. Social Environmental Factors Zara operating globally and Spain faces social influence already adopted by Inditex group for other brands in the market. Zara is advantaged that it originates from a country based on independent cultural roots. The country attracts tourist in large scale attributed to its calm social environment. This enhances customer consolidation, satisfaction and retaining them. The fashion lower prices facilitate convenient purchase for shoppers. This strategy has enhanced higher turnover enhancing increase sale of items. Technology Most of the Spanish retailing fashion and clothing companies have gone through extensive technological improvements. Zara’s competitors have adopted high technological concepts and principles in marketing as well as manufacturing process. Zara has established eco friendly stores as a way of embracing new technology. Zara has its manufacturing process broken into easy and simpler tasks and this enhances final assembly. Legal Environmental factors Most governments in Europe notably Spain’s have regulations that promote the country industrial development. Most of these countries’ logistics provides productive and conducive ay for safer transactions. Environmental issues Zara needs to fully invent new domains and to cross boundaries attributed to overall business favorability. Business environment entails customers, corporate internal factors and competitors. Porter’s five forces Rivalry It is notable that there are many fashion shops in Zara’s domestic and international markets. This form of uniqueness has enhanced Zara to cut its cost for publicity gaining in its market share. New Entry Threats The attractiveness of the fashion industry attracts more potential investors and individuals to enter the market (Magretta 2012). It is challenging to gather all logistics including the needed workforce within a short period of time thus becoming a barrier. Power of the suppliers It is notable that Zara has low power supplier due to the reason that their key major goal is to attract more customer to buy their fashion clothing’s and textiles. Substitute threats There are many competitors in the fashion industry and unpredictable all projection for new trends. Though Zara have constant innovation and creation of new designs, competitors’ creative designs are more probably substituting projects. Power of the buyers It is in the hands of the consumers that determines what to be purchased irrespective of the available brands. There are loyal customers of Zara who do not mind long line ups. Product Lifecycle According to Bonnefoi (2010) he provides that Zara brand products have four stage lifecycle. This illustrates a representation of demand variables in various stages introduction, growth, maturity and decline. It is essential to determine which Zara is operating in after the analysis of the external factors (Bonnefoi 2010). In this industry there is increased competition therefore companies innovate their products and invest in research and development. With the increased expansion in the global markets and cross country markets, Zara can be argued to being in the growth stage of the product lifecycle. Shrinking product lifecycle (Bonnefoi 2010) Shrinking lifecycle is experienced by Zara company beyond 2012 hence the company needs to respond adequately on the ever changing fashion designs in the global market place (Bonnefoi 2010). Zara has achieved this through the increased efforts ensuring that customer satisfaction is achieved. Zara is in a high fashion industry and its product offering is mainly latest trends and designs. ZARA INTERNAL STRATEGIC AUDIT This involves internal strategic audit whereby the company organization and strategic matters is examined. According to Fisher (2010) these models notably affects the company major operations as well as its strategic positioning (Fisher 2010). This analysis involves determination of financial performance, value chain analysis, and business model and leadership management. Financial performance Zara income statement  Annual Income Statement Data Actuals in M € Estimates in M € Fiscal Period January 2011 2012 2013 2014 2015 2016 Sales 12 527 13 793 15 946 17 769 19 731 21 934 Operating income (EBITDA) 2 966 3 258 3 913 4 415 4 954 5 483 Operating profit (EBIT) 2 290 2 522 3 117 3 503 3 949 4 421 Pre-Tax Profit (EBT) 2 322 2 559 3 131 3 575 4 041 4 514 Net income 1 732 1 932 2 361 2 676 3 019 3 404 EPS ( €) 2,78 3,10 3,79 4,29 4,83 5,44 Dividend per Share ( €) 1,60 1,80 2,20 2,57 2,93 3,24 Yield 1,53% 1,73% 2,11% 2,47% 2,81% 3,11% Announcement Date 03/23/2011 06:02am 03/21/2012 06:40am 03/13/2013 06:49am - - - Zara profitability Profitability 2004-01 2005-01 2006-01 2007-01 2008-01 2009-01 2010-01 2011-01 2012-01 2013-01 TTM Tax Rate % 26.87 — 26.38 24.60 23.57 20.50 23.67 25.00 23.97 24.40 24.40 Net Margin % 9.75 11.08 11.91 12.22 13.25 12.04 11.86 13.83 14.01 14.80 14.80 Asset Turnover (Average) 1.41 1.47 1.43 1.50 1.47 1.40 1.38 1.38 1.33 1.34 1.34 Return on Assets % 13.75 16.27 17.07 18.30 19.46 16.84 16.32 19.07 18.59 19.80 19.80 Financial Leverage (Average) 1.67 1.68 1.78 1.65 1.69 1.65 1.55 1.53 1.47 1.52 1.52 Return on Equity % 23.20 27.26 29.62 31.34 32.53 28.05 26.05 29.37 27.85 29.63 29.63 Return on Invested Capital % 23.20 26.49 28.81 30.22 32.03 27.87 26.00 29.35 27.83 29.61 29.61 Interest Coverage — 50.77 — 78.55 354.22 — — — — — — Zara financial leverage (Hayes2006)  Zara Price Earning Ratio  EPS & Dividend (Hayes2006)  Balance sheet analysis  Price-earning ratio This indicates the relationship between Zara earnings and its stock price. Although Zara has a notable decreasing PE ratio the value is high. Regarding to investor’s perspective it can be argued that the company is viable to investors (Hayes2006). Zara Company anticipates increase in the company growth. Earnings per share This indicates the profitability of Zara Company. It is notable that Zara earnings per share are consistently increasing and it is projected to continue increasing. Increase in EPS is a clear indication that this company is successful and profitable. It is also notable that the dividends have also increased thus attracting more investors. Return on capital employed This ratio identifies both the efficiency and profitability of the company capital investments. If favorable it should be higher than the rate that the company borrows. Increase in company borrowings significantly reduces earnings of the shareholders. In the context of Zara the company has continued to have increased return on capital employed. Therefore Zara can be argued to be making use of its assets effectively. Interest cover This factor shows how Zara Company pays their interest on their outstanding debt. The higher the ratio then the company can easily pay interest on the outstanding debt. In the context of Zara the interest cover increases and it is estimated to further increase thus indicating that Zara is able to cover its interest’s payments. Current Ratio This balance sheet ratio shows the potentiality of the company in covering and compensating short-term responsibilities. The unfavorable ratio lies at 2:1 and it is notable that Zara current ratio has been decreasing. This ratio determines the company efficiency level in terms of its operations. Most of the companies that are not able to pay receivables are vulnerable to liquidity problems. Gross Margin This is the representation of percentage of total revenue from the sales after all the direct cost associated with the production has been deducted. Higher percentages are preferable because it increases the value preserved from each revenue sales. Zara Company has its margin constantly increasing reaching 13.8 in 2012. Comparing with its past years it has risen. Value-chain analysis This analysis provides and insight on how Zara Company creates customer value in its operations processes (Christopher 2005). This involves examination of various activities in the supply chain linking it with the realized value. Value-chain is one of the competitive advantage components and this is achieved in the business chain of activities. This concept is also essential in reducing costs and maintaining customer loyalty and base (Vernimmen 2009). Zara’s value chains are more complex and detailed because it not only incorporate activities. Value chains in supply chains connect the various departments’ value chains by services, products and information flow. Zara supply chain can be summarized as follows Zara supply chain summary This entails biological and ecological regulation of natural resources, extraction of raw materials comprising various production links, moving to various storage facilities and finally conveying to the customers (Martinez 2008). Zara ensures that in each of the stages in the supply chain value is created. In this context the following activities and procedure guidelines have been embedded in its supply chain. Designs Zara has unique clothing lines attributed to unique design and speed. This company changes its designs 2 weeks per time while its competitors changes in one or two month’s time. Its product designs are popular among young females, men, women and kids. Zara turns more than 2000 designs annually with investment on opening new stores are intensified (Charles 2012). Zara value chain is aligned with the company strategy. Infrastructure Zara manufacturing plants are not located in countries such as Bangladesh, India or Sri Lanka where there is cheap labour. Their major factory is located in Spain where there is cheapest labour in the country. The aim of this is to reduce labor costs at the same time offering agility and flexibility for new designs and reducing the time required to reach its final selling point. Human resource management Zara Company recruits fresh, young and energetic individuals who have the capability of focusing on one job. The company does not have increments hence its workforce comprises of young and energetic people. This organizational structure gives senior and junior employees powers to make decisions notably in designing clothes. Much of the authority is delegated because the organizational structure is flat. Technological development Zara has heavily invested on IT in its supply chains to add maximum value. This has enhanced designing every time having replica’s of famous designers. Using technology Zara agents can sent sketches of designs they have picked in various places (Christopher 2005). With time span of three hours the agents can sent the sketches into the factory and the design is manufactured on time. Procurement Zara buys its raw materials mainly from Italy, Greece and Spain because the finished products can be pushed to the final selling point. Raw materials are supplied within 5 days to the manufacturing plant in Spain. Most of the inbound logistics are majorly trucks. Business operations Flexible manufacturing systems have been equipped in its factory in Spain. This FMS installation facilitates fast turn around in designs as well as production (Christopher 2005). Although the cost of labor is not cheap focus is laid in enhancing production efficiency. These systems have a lead time of 12 days. Sales and marketing The company has identified the target customers majorly females. Zara do not engage in advertisement on media only large posters have been put in place. This yields more revenue than running an advertisement campaign which increases company expenses thus reducing profitability. Business model Zara is the largest internationalized brand of Inditex’s chain and it is a core major driver of the group growth. Zara has a unique business model based on the concept of selling medium quality fashion clothing at affordable prices. In addition quick-response and vertical integration is also emphasized in this model (Martinez 2008). The business system of Zara includes designing, sourcing and manufacturing, distribution and retailing. In this business model there are four fundamental success factors which are small batches per product, short cycle time providing variety of product and finally investing heavily on communication technology. All of these elements are incorporated in every aspect of business in this company. This model ensures that consumer preferences are tracked and orders placed with both external and internal designers. This huge variance is achieved by ordering internal production of most stylish, small batches as well as time sensitive products. This business model is enhanced by the sourcing and manufacturing processes (Jacques 2013). Zara has offices in other countries located in the fashionable cities facilitating purchasing as well as trend-spotters. Zara business model facilitates manufacturing of fashion-sensitive products produced in small batches notably that which are most time-sensitive. In regard to distribution all merchandise is transported through the central facility in Spain or through satellite sites. Bullwhip effect is reduced attributed to the adoption of vertical integration of manufacturing and distribution. The adopted business model allows Zara to create a more fashion forward line. The designing process is continuous attributed by constant evaluation of consumer preferences. EXTERNAL & STAKEHOLDER ISSUES AFFECTING ZARA CORPORATE IMAGE The underlying issues lie on the following aspects of the organization. The aspects include corporate social responsibility, organizational management and organizational culture. These aspects significantly affect Zara corporate reputation in the fashion industry as well as its brand equity. Corporate social responsibility Through its business model Zara is committed to helping sustainable societal developments and the environments it interacts with. The actions and objectives of this commitment have significant impact on the customer impression about the company reputation as well as the stores. The stores are made eco-efficient through saving of energy (Charles 2012). Measures have been applied in all processes including store design, lightning and cooling systems and recycling of furniture and decoration. The company emphasizes employee awareness for the need to adopt sustainable practices such as reducing energy consumption and the use of sustainable transport. Environmental practices related to customer service Zara advocates the use of paper mainly biodegradable plastic bags giving customers and it is made of paper. Plastic bags are rarely used only during sales campaign (Jacques 2013). These bags decompose through natural biological processes which prevents environmental pollution. Zara is also committed to using recycle materials for customer information. It is also notable that their fashion catalogues are printed on paper. Environmental policies with the product Zara uses organic cotton as a way of supporting ecological agriculture in the production of clothing items. The distinctive label of its products can be easily identified in the stores. In the production of footwear Zara uses no petroleum derivatives or non-biodegradable materials. Transport environmental policies Zara fleet of Lorries uses biodiesel fuel. These Lorries use 5% of biodiesel fuel and this enables reduction of carbon dioxide emissions thus reducing air pollution. Policies on Animal welfare Zara’s animal products such as leather and fur come from animals reared in livestock for. They are never from animals killed illegally for these products. These policies adopted by Zara for effective corporate social responsibility have positive impact on its corporate reputation as well as creation of brand equity on its products. Organizational management and culture Zara has efficient and unique business structure capturing attention in the corporate world. Zara is one of the eight retail sale formats all boasting creativity and quality design characterized with rapid response to market demands. Zara operates with lean organizational structure focusing on high performance (William 2010). This structure has reduced managerial hierarchy levels and decentralize decision making. The model limits the business’s focus on redundant administrative procedures. From design to delivery it takes the company only five weeks for a garment and only two weeks for an existing model. This method shortens the product life cycle, which allows for greater success in meeting consumer needs (Schermerhorn 2009). Customer satisfaction is of extreme importance to Zara and the consumer’s purchases truly shape almost all of Zara’s business decisions. Information technology is used to report directly to their production centers and designers in Spain. PDA’s are used to check on the latest clothing that’s been designed and place their orders based on the demand they see in their store. Zara being a vertically integrated company, describes a company that has control over several or all of the production and distribution steps involved in the creation of their product. Zara owns its textile dye house while the retailer operates with a vertically integrated demand and supply chain. Other textile chains rely on outsourcing cheap labor. Zara has also set up a well-oiled machine based on customer demand and fast turnaround. According to Schermerhorn (2009) Zara company organizational culture is highly flexible and decentralized. Employees work as a team to get their duties and responsibilities done successfully. All the employees focus in finishing the whole process together. Employees are required to be humble to get feedback from their fellow team members (Schermerhorn 2009). All the employees share credit among themselves therefore creating winning ideas. These established standards have facilitated Zara to grow tremendously developing a strong culture. To keep its teamwork among the various department effective Zara has build a safety net. Team members in the workplace are switched around to create fresh ideas; competition is enhanced among the teams as well as continuous feedback. This kind of organizational culture has help Zara’s workplace respective and unpretentious. ZARA STRATEGIC OPTIONS There are two core strategic options that Zara can adopt in order to sustain its market command as well as gaining competitive advantage over its competitors (Jacques 2013). These options are: seeking new opportunities in the apparel market and enhancing operational effectiveness. In seeking new opportunities Zara needs to venture into new markets as well as stabilizing the existing markets. This will ensure that the company enhances brand image and consolidating market share. Operational effectiveness ensures that Zara perform its operations better than its competitors. RECOMMENDATIONS Establish central distribution centres Establishing more central distribution centres will decrease logistics problems hence facilitating delivery of fashionable goods reaching its customers on time. This will also facilitate easy interpretation of various markets fashions obtaining shorter lead time. According to Claudia Fisher (2010) on his study on manufacturing companies distribution in EU countries studies show that increasing distribution centres facilitate easy penetration into international global markets. Zara Company will enhance its market expansion. Invest in internet retailing This is mainly targets newly ventured markets that have access to online payments. Most of the fashion customers would like to buy apparel and clothing’s online. Potential advantages of direct internet selling strategy will be realized. Direct internet selling will be realized and it is easier and faster. Offer specialized products for different geographic locations More specialization of products will increase consumer demand and this will motivate both potential and existing customers visit more Zara locations within their geographic locations. Enhance product differentiation Zara consideration to differentiate its products from location to location will ensure that shopper traffic is increased. This recommendation will also ensure that cannibalization of the chain is significantly decreased. Supercharge product development With new styles being developed, each of them will increase retail sales, higher margins will be realized. Adopt vertically integrated demand and supply chain as opposed to outsourcing cheap labour This will enable Zara to short turnaround times achieving greater flexibility, reducing stock to minimum levels and finally diminishing fashion risk to the greatest possible extent. This strategic option should be incorporated into Zara business model and all of its operations. Enhance operational effectiveness Zara Company has its operations in various department interlinked together and one department affects the operations of another department. Therefore effectiveness need to be fostered in all the departments to enhanced the overall effectiveness. This will ensure that the company improves quality, design efficient customer experience, lowering costs and enhancing sustainable dominance over its competitors. Focusing on short term responses Zara need to focus on the short term responses in order to meet of its short term objectives. This ensures that all the stores have enough preferences that consumers need. Zara can easily identify fashion trends in short periods i.e. winning fashion trend. SUITS ANALYSIS This analysis is essential in assessing the underlying strategic options in order to initiate suitable and effective recommendations. Criteria Elements Strategic Fit The above underlying recommendations should be adopted in all the aspects of the company. This will ensure that Zara sustain its competitive advantage and creating brand equity. This will ensure that it remains to being a market leader. Utilization Zara has been the backbone of Inditex group hence generating revenue and profitable since its establishment. Therefore these underlying strategies recommended can be funded. Intangibles Zara company has a strong organization culture that embraces the adoption of new technologies and efficiency in all of the processes. The company also have young and energetic workforce hence the company has the capacity to implement fully the underlying recommendations. Timescale It is important for Zara to implement these recommendation and strategies so as to realize its potential as well as suitability. Time is required to ensure that all these strategies are implemented and incorporated in the company business model. Sustainability The recommendations and the strategies provided are consistent with the interest of both the stakeholders and shareholders hence its adoption is advantageous to the company. To enhance this it is important to develop strong brand image and consolidated market share. CONCLUSION In conclusion Zara strategic analysis and audit provides how the company operates, procedures and guidelenes adopted. In the analysis various challenges and lopholes and areas that need to be addressed is identified. The areas identified are core pillars that ensures that the Company is ranked top in fashion industry. The strategic options and recommendations provided are based on the company and can be implemented successfully. This will ensure that Zara realizes and achieves its future short-term and long term objectives. REFERENCES Bonnefoi, B. M, 2010, Demand Forecast for Short Life Cycle Products: Zara Case Study, Massachusetts : Massachusetts Institute of Technology. Cascarino, R, 2007, Internal Auditing - an Integrated Approach: 2nd Edition, New York: Juta and Company Ltd. Charles W. L. Hill, G. R, 2012, Strategic Management Theory, New York: Cengage Learning. Charles W. L. Hill, G. R, 2012, Strategic Management: An Integrated Approach, New York: Cengage Learning. Choi, T.-M, 2011, Fashion Supply Chain Management: Industry and Business Analysis, Boston: Idea Group Inc (IGI). Christopher, M, 2005, The Agile Supply Chain: Competing in Volatile Markets, Industrial Marketing Management, 37–44. Claudia Fisher, C. V, 2010, Connective Branding: Building Brand Equity in a Demanding World, New York: John Wiley & Sons. don Quijote Salamanca S.L., January, 2013 1, Zara: The Largest Spanish Clothes Company, Retrieved from Don Quijote: http://www.donquijote.org/culture/spain/fashion/zara.asp Ehap H. Sabri, P. S, 2010, Lean and Agile Value Chain Management: A Guide to the Next Level of Improvement, New York: J. Ross Publishing. Eva Martinez, Y. P, 2008, Effect of brand extension strategies on brand image: A comparative study of the UK and Spanish markets, International Marketing Review, 107 - 137. fibre2fashion, 2012, August 20, Zara Brand Story: Corporate social responsibility, Retrieved from fibre2fashion: http://fashiongear.fibre2fashion.com/brand-story/zara/commitments.asp Jacques Kemp, A. S, 2013, Management Frameworks: Aligning Strategy Thinking and Execution, London: Routledge. John R. Schermerhorn, J, 2009, Exploring Management, New York: John Wiley & Sons. Jose M. Pina, E. M, 2006, The effect of service brand extensions on corporate image: An empirical model, European Journal of Marketing, 174 - 197. Magretta, J, 2012, Understanding Michael Porter, Harvard: Harvard Business Press. Pehlivan, C. N, 2011, Financial Analysis and Valuation of INDITEX: A Business Valuation Report and Theoretical Study, Munich: GRIN Verlag. Pierre Vernimmen, P. Q, 2009, Corporate Finance: Theory and Practice. New York: John Wiley & Sons. S.G. Hayes, N. J, 2006, Fast fashion: a financial snapshot, Journal of Fashion Marketing and Management, 282 - 300. William B. Lee, P. M, 2010, Leading Effective Supply Chain Transformations: A Guide to Sustainable World-class Capability and Results, New York: J. Ross Publishing. Youngsun Park, B. S, 2008, The global retailer's strategic proposition and choice of entry mode, International Journal of Retail & Distribution Management, 281 - 299. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Zara Fashion Company Case Study Example | Topics and Well Written Essays - 6250 words”, n.d.)
Retrieved from https://studentshare.org/business/1404043-zara-case-study
(Zara Fashion Company Case Study Example | Topics and Well Written Essays - 6250 Words)
https://studentshare.org/business/1404043-zara-case-study.
“Zara Fashion Company Case Study Example | Topics and Well Written Essays - 6250 Words”, n.d. https://studentshare.org/business/1404043-zara-case-study.
  • Cited: 0 times

CHECK THESE SAMPLES OF Zara Fashion Company

Zara clothing company

Zara remains the most competitive fast fashion company globally, the latest profit forecasts amounting to $3billion dollars as Burberry following suit at a total of $2.... Zara remains the most competitive fast fashion company globally, the latest profit forecasts amounting to $3billion dollars as Burberry following suit at a total of $2.... Introduction The Spanish fashion company Founded in the year 1975 remains to be the most competitive fashion company in production of affordable clothing for the female and male youthful genders....
16 Pages (4000 words) Essay

Knowledge Management and Information Strategy: Zara Corporation

The owner of the company, Amancio Ortega, he likened the fashion industry to that of food by describing the industry as one with perishable goods (Casillas, Acedo, and Moreno 2007, p.... nbsp;At the company, the employees work like bees in a hive- as a team to get the work done successfully and quickly.... Which means that the company is not only providing their customers with a basic need that is clothing, but also their customers demand self-actualization- putting on what they feel portrays their image....
12 Pages (3000 words) Case Study

Zara Case Study

The distinctive vertical integration feature of Zara's business model, has allowed the company to successfully develop a strong merchandising strategy.... The main business tactics of the company in context of its business model is:- At the heart of Zaras success is a vertically integrated business model spanning design, just-in-time production, marketing and sales....  In the paper “zara Case Study” the author analyzes zara's business model....
4 Pages (1000 words) Coursework

Zara Analysis

The company has also invested extensively in their home market of Spain, with the hopes of upgrading the commercial and logistic activities to boost their world-wide operations.... It was established in 1985, and came to prominence as a fashion distribution name with the inauguration of the first Zara store in 1975 (Annual Report 2009, 20).... For France is particular Zara needs to consider the following aspects of the macro environment: The European financial crisis and the fluctuating value of the Euro have a strong impact on fashion apparel retailers....
4 Pages (1000 words) Research Paper

Zara - IT for Fast Fashion

The Zara Fashion Company defines the global market environment in accordance to the marketing variables of psychographic, demographic, behavioral, and the demographic factors.... The essay "Zara - IT for Fast Fashion" concerns Zara - fashion company.... The company survives in the competitive global fashion industry upon an analytical survey of the market variables.... … This essay analyzes Zara company.... Еhe company establishes on the essence of technology in compromising the negative forces while enhancing the general image....
4 Pages (1000 words) Case Study

What Business Is Zara

Zara is a company that is in the business of designing, manufacturing and distributing fashion garments.... GAP, Inc does not manufacture its clothes: it is a retailer company sourcing its clothes from various factories.... The essay discusses What Business Is zara In.... The essay "What Business Is zara" investigates zara business model.... zara business model is unique and distinct from others because it has taken control of its supply chain independently....
5 Pages (1250 words) Essay

Zara: IT for Fast Fashion

This case study "Zara: IT for Fast Fashion" demonstrates Zara Fashion Company that has a lot to learn from Cisco Inc.... Five years down the line, Zara Fashion Company will find itself in a lot of technical problems.... Information and technology are an important aspect of any company and its management should be handled with at most caution.... This is because if the information technology of a company fails it will result in a lot of losses for the company....
8 Pages (2000 words) Case Study

Strategic Approach to Information Technology Management

hellip; Zara Fashion Company has a lot to learn from Cisco Inc.... Five years down the line, Zara Fashion Company will find itself in a lot of technical problems.... This can be proved by the fact that the company tries as much as possible to minimize costs in its information technology infrastructure.... For example, the company prefers to develop its own programs rather than employing software developing companies to write their program or buying software....
8 Pages (2000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us