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Case Assignment: Zara

In Management Information Systems: ITEC 616

Fashion Retailing: How does IT support business transformation?


In the world of fashion retailing, hot trends come and go in a blink. Profitable retailers must
incorporate business strategies that control costs, increase revenue and place them as “the”
place to shop. According to Inditex CEO, Jose Maria Castellano; “The fashion world is in
constant flux and is driven not by supply but by customer demand.”

As a newly hired business analyst in a market research firm, you have been asked to assess the
strategic role of information systems at Zara. Your client wants to better understand how Zara
manages its information to design, produce and sell fashion around the world. The situation
analysis presented in the article dates from 2001. The IT considerations remain relevant so for
the purpose your response you may focus on the time of the article.

Prepare a memo (LONG ASSIGNMENT, submit in pairs of 2 students), no more than 750
words, to your manager responding to this question. In order to effectively respond, you should
address the following:

1. Describe how Zara captures data and creates information in each of the five primary
activities of the firm value chain.
2. Is the Zara techno-strategy sustainable? (Review sustainability issues as presented in
Porter’s “Strategy and the Internet.”)

Submission: via Hardcapy AT THE START of class on due date in Syllabus.

Class Discussion- Be prepared to share ideas about Zara in 2011 and how the “fast fashion”
industry has evolved in the past decade.

Source materials include, but are not limited to:

1. Zara case materials posted on Blackboard: “Retail @ the Speed of Fashion.” by


Devangshu Dutta
2. Michael E. Porter and Victor E. Millar (1985), How Information Gives You Competitive
Advantage. Harvard Business Review Blackboard E-reserves and pictured in this
diagram:

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