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1、Fast Fashion,Index,Company Profile Unique Business Model Strategies ZARA Analysis Recommendation,Company Profile,ZARA is: Spanish clothing and accessories retailer Based in Arteixo, Galicia Founded in 1975 by Amancio Ortega and Rosalia Mera The most profitable brand of the Inditex group.,Video,http:
2、/youtu.be/qhCM0F81vEg,Objectives,Develop system the requires short lead times Decrease quantities produced to decrease inventory risk Increase the number of available styles and/or choice,Unique Business Model,Design,Distribution,Sourcing & manufacturing,Retailing,Business Model (contd),Design: Crea
3、tive Teams Different sources of ideas (store managers, TV, internet, fashion on street & fashion show, trend spotter),Business Model (contd),Sourcing & Manufacturing Assistance of purchasing offices in Barcelona & Hong Kong More than 200 external suppliers In-house production (40 % of clothes produc
4、es internally, 60 % externally),Business Model (contd),Distribution Central distribution center in Arteixo Satellite center in Argentina, Brazil and Mexico Center works on dual-shift basis Equipped with mobile tracking system Delivery on Europe takes 24 hours and outside Europe takes 48 hours Schedu
5、led shipments by time-zone,Business Model (contd),Retailing consists of merchandising and store operations Stores places in premium streets and city centers Set fabulous window-display store Main retailing tactic: create scarcity Very low advertisements Aims: reduce inventory and marked-down prices,
6、Competitive Advantage,Fast Production,Product Variation,Low level of inventory,Efficient distribution system,Turnover of product is high,Cost leadership,Fast production,Ability to design and finish goods in store within 4 to 5 weeks Very quick to get designer-influenced products into their stores,Ke
7、y of ZARAs Advantages,Strategies,Design,Vertical Integration,Marketing,Technology System,Pricing strategy,Technology System,Order information flow to store ordering system Improving inventory system Product distribution system,HRM & MIS,Training Designer Training Store Manager Training Buyer Connect
8、ion with distribution system and IT system,Design,Coordinate with R&D and also with stores itself to catch new trends Ability to produce fast fashion,Marketing,Market Penetration: Own subsidiaries Joint Ventures Franchising Strategic location of stores, Tracking consumers preferences analysis Low co
9、st of advertisements (0-0.3%),Pricing Strategy,Market based prices Analysis of market Customer sensitivity to prices,Central distribution system in La Coruna, Spain In-house production Short lead-times Forward vertical integration Reduces bullwhip effect Backward vertical integration Reduces costs &
10、 Improves quality,Vertical Integration Supply Chain,Production & Distribution,Centralized distribution Maintain quality Cost leadership High Bargaining power to supplier Distribution system to fast distribution,ZARA Analysis,ZARA,Porter Analysis of ZARA,SWOT Analysis,Recommendation,Change the system
11、: Centralized Transform Decentralized Build decentralized distribution & production in each region Tend to fastest in producing new product (design production& distribute Keep maintain the value chain,Decentralized Model Value chain,Reference,Carmen, L. and Ying, F. (2009) Internationalisation of th
12、e Spanish fashion brand Zara 13(2), pp.279-296. Marilyn , H. and Judy, N. (2010) “Exploring SWOT analysis where are we now?: A review of academic research from the last decade.” Journal of Strategy and Management, 3 (3 ),pp.215-251. Saurabh Jindal (2012).Zara Strategy Analysis SWOT 5 Forces. ONLINE Available at: Last Accessed 9 March 2013.,Reference,Images of Zara (online) Source: Company profile of Zara (online) Source: Alan, B.
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