Zara Case Study - 1656 Words

3.1 HISTORY and BACKGROUND ZARA is the flagship chain store for the Spanish Inditex Group owned by Amancio Ortega, who also brands such as Massimo Dutti and Bershka. It was first open in 1975 in La Coruna, Galicia, Spain. Originally a lingerie store, then the product range expanded to incorporate women’s fashion, menswear and children’s clothes (5). The international adventure began in 1988, opened its first foreign store in Oporto, Portugal. The market growth remained mysterious and it kept growing the stores in different countries and its cities. Started from the United States (1989), Paris (1990), Mexico, Belgium and Sweden (1994), Malta (1995) and Cyprus (1996). The stores remained company owned, however, it started to make another†¦show more content†¦Because of the ‘no marketing’ strategy, Zara relied on its shop windows to communicate its brand image. Displays were changed regularly to remain visible and alert customers of their newest (12). The store, however, is given priority in its interior and exterior design. Large flagship stores often build on an architecturally interesting building to reinforce the style and design message. It is decorated the space to create a well-lit space with plenty of light where the clothes take centre stage where the clothes take pride of place, eliminating all barriers between the garments and the customers (13)(Zara and lean retail). Products are not displayed by like (eg. Skirts, trousers) but by outfit to try to maximize customer spend. Once in two years time, Zara stores changed its interior decoration and furniture for a fresher look (14). 3.2.4 Fast Fashion and Low Cost Zara cannot be considered as an original fashion retailer because it imitates many famous brand products. It focused more the attention on understanding the fashion items that customers wanted and delivering them, rather than predicting season’s trends via fashion shows. However, this ideas are yet very successful because Zara can produce the latest fashions which can be easily adaptable to the mass market with low cost compared to the other brand. Zara’s fast-fashion means that some popular items appear and disappear within a week, creating an imageShow MoreRelatedZara case study Essay2280 Words   |  10 Pagesï » ¿Coursework Header Sheet 209896-18 Course OPER1027: Operations Mngt: Proc/Value Ch Course School/Level BU/UG Coursework Case Study 1 Assessment Weight 25.00% Tutor J Whiteley Submission Deadline 25/11/2013 Coursework is receipted on the understanding that it is the students own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the UniversitysRead MoreZara Case Study : Zara Case2492 Words   |  10 Pages Zara Case Study Name Academic Institution Zara Case Study Executive Summary This case study (Ghemawat, Nueno, Dailey, 2003) of the Spanish retail apparel company Zara, one of the six retail brands owned by Spanish company Inditex, focused on a number of issues confronting the retailer. These issues arose mainly from the consideration that Zara defied many of the dynamics of the retail apparel market. Zara, unlike its competitors, owned most of its production as well as itsRead MoreZara Case Study2762 Words   |  12 PagesQ1. 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? Ans. The four companies shown given in the case have very different business models. Inditex owned much of the production and most of its stores. Inditex is thus a vertically integrated company. This gave Inditex a competitive advantage, which is quick response to the market requirementsRead MoreZara Case Study1833 Words   |  8 PagesZARA CASE STUDY [pic] Introduction The history of Zara started in 1975, when the first store has been opened in Spain. It has been followed by several other stores all over the world. The company’s owner, Amancio Ortega, accumulated 340 million Euros (according to 2001 datas), which is a remarkable growth if compared with other companies. Zara’s brand has become popular because of its quality and efficiency. The secret of Zara is to understand the customer’s need and demands and respondRead MoreZara Case Study3553 Words   |  15 Pages[pic] CONTENTS 1. Introduction 3 2. Zara as Company 4-5 3. Zara’s Model of Operation 6 4. Company’s Structure Read MoreZara Case Study3306 Words   |  14 PagesJune 6, 2007 Zara Case Study Summary Zara is a clothing retail store for women, men and children, concentrating sixty percent of their effort to the women clothing market. Besides retailing, Zara also designs, produces, and ships their lines of clothing to their Zara stores. Zara s corporate concept is to offer fashionable, trendy, designs at a reasonable price. The key to their corporate success is to offer the latest trends and fashions before their competitors. They believe thatRead MoreCase Study - Zara International694 Words   |  3 PagesJay Case Study: Zara International Fashion at the Speed of Light Question 1: In what ways are elements of the classical and behavioral management approaches evident in how things are done at Zara International? How can systems concepts and contingency thinking explain the success of some of Zara’s distinctive practices? Answer 1: Elements of the classical management approach are very evident at Zara International. The classical management approach contains three branches, which are scientificRead MoreZara International Case Study1000 Words   |  4 PagesZara International was a retail shop originated in La Coruna, Spain in 1975. It was clothing and accessories shop and imitated the latest fashion trends and sold them at a lower cost. It became Zara International after entering Portugal in 1988 and then the United States and France in the 1990s. The distributor for this brand is Inditex and is considered the most successful retail chain in the world. Zara has a business strategy that is very different from the retailers nowadays. If a customer ordersRead MoreZara Case Study986 Words   |  4 PagesZara is the flagship brand of the Spanish retail group, Inditex SA, one of the super-heated performers in a soft retail market in recent years. When Indtiex offered a 23 percent stake to the public in 2 001, the issue was over-subscribed 26 times raising Euro2.1 billion for the company. Zara is unique model in business world today it has its own principles which may varies from its competitors in the same industry starting from production strategy ending with supply chain management strategy, theseRead MoreZara Case Study1404 Words   |  6 PagesCompany Case: Zara: The Technology Giant of the Fashion World Identification of the Problem/s or Issue/s Zara, a Spanish-based chain owned by Inditex, is a retailer who has taken a new approach in the industry. By owning its in-house production, Zara is able to be flexible in the variety, amount, and frequency of the new styles they produce. With their unique strategy, Zara has the competitive advantage to be sustainable. In order to maintain that advantage and growth they must confront certain