Zara introduces new garments in a typical year. An efficient supply chain is becoming more and more key success factor for companies.
They also have high costs due to the constant changeover of production techniques to create their different apparel lines. Zara depends on word of mouth shuning advertisements.
Zara manufacturing and distributions systems enable delivery from concept to store within 14 days. This technology contributes without doubt to ameliorate the responsiveness of ZARA: As a result, Zara reduces the inherent uncertainty associated with new designs in this industry that is characterized by long lead times and very high variability of demand e.
Case Study of Zara: It is interesting to know that Zara can get the product from the idea to the store in15 days time, where the industry standard is 6 months, the design and production process is very efficient and harmonized due to the use of the different methods that suites their line of business and set new model to look for.
Though, the Inditex branch is researching and developing new methods for expansion, the company must continue to re-invent and innovate themselves in order to stay fr References 1.
Ownership and control of manufacturing facilities in Spain allows for quick response. Zara opened their first store in Spain in and have since expanded internationally, opening their first international store in Portugal inand later opening a further store in New York, US, in ZARA chose to implement a Just-In-Time JIT manufacturing system as well as to invest in a sophisticated telecommunication system, thus improving the information flow between headquarters and supply, production and sales sites and thus avoiding any type of bureaucratic structure.
Operations management is a vital part of an organization to achieve success because it includes that activity of managing the resources to produce and transfer products and services Slack, Chambers and Johnston ZARA, then, successfully maintain control of its inventory while keeping inventory costs at a lower level.
Designs inspiration is copied from different sources trade fairs, catwalks, magazines from all around the world. But it also avoids build-up of large quantities of unpopular stock. Therefore, operation function is one of three main core activities of an organization, while the other two activities are Slack, Chambers and Johnston By that, a questionnaire designed and tested on 20 subjects of which 14 were female and 6 male.
Since the first store, Zara established about shops in 86 countries around the world. Today the Zara name is recognized throughout the entire world. What makes Zara such successful when other competitors are falling. Their concentration on core operation as well as production capabilities, resistance to outsourcing, and focus on the fashion pulse have made this company one of the most victorious clothing retails.
Zara designs around 10, new models every year and replenishes ranges within every one of its retail stores twice per week, but in strictly limited quantities of stock. ZARA chose to implement a Just-In-Time JIT manufacturing system as well as to invest in a sophisticated telecommunication system, thus improving the information flow between headquarters and supply, production and sales sites and thus avoiding any type of bureaucratic structure.
Case Study of Zara: Use of Technology to Improve Operational Responsiveness Fashion giant, Zara, forms part of the retail group ‘Grupo Inditex’ which is one of the “largest, fastest growing and successful” clothing retailers across Europe.
In the case of Zara, for European, American, and eastern Asian countries, Zara is positioned as the low-end 13 products, however, in emerging markets such as India, China, and Indonesia, Zara is considered as the high-end products. ZARA case study Operational management Essay ZARA Zara broke almost all of the “rules” that McKinsley Consultants identified in regards to ways for retailers to successfully expand.
The company does not minimize tangible investment, on the contrary its structure lies heavily on vertical integration. operational concepts used by Zara, which help ed this study to make critical thinking and evaluation of standard models in the first part such as the ITO model, the Four V’s model, the process.
Even though we know that Zara has an extremely good supply Chain and Operations Management, we know to little about its competitors to determine a Competitive Advantage.
But we know that Zara has the Cost Leadership so in this regard they have a Competitive Advantage.Zara case study operational management