For this case study provide the complete assessment of each and every criterion in operation management. It for fast fashion case solution and analysis, hbr. Here is everything you need to know about zara supply chain management, the strategy that this industry used to become successful in the market. Zara case solution and analysis, hbr case study solution. Keywords supply chain management, agile supply chain, zara case study.
Since the company chooses to hand the process of design, production, and distribution all inhouse its retail stores are then able to react much faster to the changing trends in fashion in comparison to their. Zara needs just two weeks to develop a new product and get it to stores, compared to the sixmonth industry average, and launches around 10,000 new designs each year. With your download, get the 22 best papers relevant to this one, including 20 top related papers. Frameworks for strategy and the decision category approach business strategy context for operations strategy. Zara has followed an optimal combination of all these. Zara a strategy of just in time, and consequently have zero stock. Finally, store location, as any marketing is left to store location rather than advertising. Zara has established itself in the market with its elegance and quality of products supplying to its customers. A web search on zara supply chain operations yields many results. Focuses on inditex, an apparel retailer from spain, which has set up an extremely quick response system for its zara chain. Next to zara, the rest of the labels the groups own are bershka, massimo dutti, pull and bear, stradivarius, oysho, zara home, zara kinds and uterque. Doc the strategic management analysis of zara relative.
Synergy between zaras business strategy and operational processes. Inditexs operations use a vertical supply chain which is considered a very different and unique strategy in the fashion industry. Kohan, based on the 4es model of marketing, where experience replaces product, exchange in new price, evangelism is now. Despite these limitations, however, zaras parent company, inditex, has built an extraordinarily wellperforming value chain that is by far the most responsive in the industry. Zara is ranked as one of the top 50 global brands in terms of brand value interbrand, 2009. To do this, it will be used the operation strategy matrix, that defines on the vertical side the performance objectives of the company and on the horizontal side the different areas in which decisions can be made. This presentation covers the main characteristics of zara, a general view of fast fashion indystry, porters five forces analysis, competitors external environment as well as a complete internal analysis regarding. In this case, 50 percent of the items has been designed and manufactured based on different style patterns and the designs massa and testa, 2009. Operations management is in regard to all operations within the.
Zaras strategic capabilities and value chain analysis. Zara has achieved this despite proudly claiming that they have never spent a penny on advertising. Operations strategy of zara question 3 question 2 question 1 carla kunz charles samson hazel chan michael cropper compare zaras possible supply chain disruptions with that of hewlettpackard using the assessment matrix of exhibit 2. Zaras case study zara is a fashion label and fashion chain stores established in 1975 by the spanish group inditex own by amancio ortega. Finally, the recommendation and conclusion summarizes the results of the. Zara supply chain analysis the secret behind zaras retail success. Case studies of postponement in the supply chain by susan m. Zaras supply chain management model secret behind zara. Inditex and zara own 22 factories in europe 18 in spain, and contrary to competitor did not outsources the core business clothe production.
Pdf this chapter discusses basic supply chain and operations. Zara strategy is growth through diversification with both horizontal and vertical integration. This notion is very important in the zara strategies, the company only produce very small batch of collection. Zaras supply chain operations support its strategy and philosophy of providing fashion that accurately reflects. External analysis inditex with its flagship brand zara should look to enter new zealand market, which is still untapped by the compan. It manufactures, distributes, and retails clothes within 2. How your belly controls your brain ruairi robertson tedxfulbrightsantamonica duration. Zara boasts a marketing strategy of firstly product variety with a focal point of ensuring speed to market. The successful implementation of an integrated supply chain strategy enhances total control over the operations and thus enhances speed and. Operations management of inditex and its retail zara.
This case study on zara analyses its supply chain practices. The key to zaras ability to establish an agile supply chain rests on the following unique approaches. As noted in the case study, customers will tend to visit zara stores considerably more frequently than competitor stores, due to the fact that new products are continuously being launched. Zara is a wellrenowned name in the field of clothes and accessories, all across the world. It has grabbed the attention of the public with its vital designs and appealing outfits. Please do not distribute without the authors permission. The case of spanish fast fashion retailer inditexzara. Products have been characterized into three major parts i. Operation zara dan ikea case operations strategy of zara. Zara is the largest division and flagship brand of the spanish retail group inditex 1. Therefore, the strategy of fast fashion make zara successful and their operation management and supply chain are their competitive advantages. Pdf operations and supply chain strategy researchgate. Analysis of zaras fastfashion retailing strategy with fit shelley e. Zara case solution,zara case analysis, zara case study solution, annual report part 1.
This strategy deeply influence the way they built their supply chain and organize it. Rethinking their supply chain strategy, zara will face. Doc zaras operations strategy wilbert makori academia. Quantitative models and empirical studies, 2nd edition, narendra agrawal and stephen a. Just in time, quick response, postponement, local sourcing and production are some of zaras supply chain practices that help it achieve excellence in supply chain. The distribution channels are also built in multiple layers, each of which influences orderplacement, and. Also, it will be shown how the ideas of operations management are put into action at zara. Make operations strategy clear to the rest of the organization provide the operating capabilities that will be required in the future table 2. While it may not be possible for another company to exactly duplicate the conditions under which zara flourished, one can certainly learn from its experiences, and its business structures. Zaras procurement team doesnt work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. This is a strong strategy and needs to be developed, as it offers substantial opportunities to gather greater customer support, on a regular basis mittal. At present, zara launch 10,000 new articles per year across their portfolio of stores.
Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. Zara has been in the market for two decades and has developed its brand image in shoppers. It means that zara have to produce quick quality clothes to answer to the fast moving trend in the world. It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. This detailed case study will provide the complete knowledge of operation management and its criterias. Responsive strategies of zara improve the efficiency of information exchange in every level of supply chain those are customers, store managers, designers and market specialists.
The objective of this paper is to analyze and evaluate the operations strategy of zara. A case study analysis of zaras operations strategy uk essays. Operations strategy of zara by charles samson on prezi. Operations management is in regard to all operations within the organization responsible for creating goods and services that organizations pass to their customers. 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 without it. How zara grew into the worlds largest fashion retailer history and business model of zara by suzy hansen, the new york times magazine, 9 nov 2012. Zaras business model is basically based on the principle that it can sell medium quality fashion clothing at affordable prices. Anggita sulisetiasih 1006718706 kenji wibawa junardy 1006718990. It provides the basic information of these organizations and how the operation strategy. The case describes this value chain, concentrating on its operations and it infrastructure. Zara is a spanish clothing and accessories retailer based in arteixo, galicia. Zara s success is as much a result of its history and location, as of its counterintuitive business strategies. Instead, the value of zaras brand comes from its supply chain and its ability to add value to every stage of the supply chain porter, 1985.
Business model overview and research opportunities felipe caro. A case study on zaras operation management strategy 1 mohammed mansur rashid. Case operations strategy of zara by charles samson on prezi. Zaras most of the operations are centered on the primary manufacturing opportunities in spain. Class 2 frameworks for strategy, and the decision category approach case. Operations research united states air force academy, 2004 submitted to the department of civil and environmental engineering in partial fulfillment of the requirements for the degree of massachuseuts instife master of science in transportation of technology.
Zara has satisfied the customers and has implemented strategies that made it possible to become dominant in the fashion industry. Zara was described by louis vuitton fashion director daniel. Ikwoiq3bnujseay book free download zara operations case study pdf. 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.909 944 1220 862 218 521 1488 420 109 1137 1450 934 650 1302 844 783 753 889 514 500 633 1502 1354 465 511 825 173 484 895 853 1458 409 283 251 1167 123 152 1168 1194 604