Marks and Spencer:

1) What is innovative about Zara? What are the major differences in Zara's supply chain
process when compared with that of M&S?
Zara is the most famous brand of Inditex. It was founded in 1963 in Spain by Amancio
Ortega Gaona. The Zara group is owned by Inditex. The first Zara shop was opened in
1975 in La Coruna, Spain. Zara grown significantly during 1980 to 1999. It repressed
70% of inditex's total turnover. All of the success was done without any advertisements,
they have done more on location and products that targeted to the ever changing tastes of
the trendy young shoppers. Their strategy about products in the market are new every
week and 70% of the product range change every two weeks. They always focus on the
fashion trend so no one feel their product is dated.
Zara's value chain is much different than M&S.

2) In comparison to M&S supply chain, Zara operates more internally and the
only outsourced element in its supply chain is sewing cooperatives.
3) While M&S requires external services from fabric supply to packing and
trucking. The buying team of M&S is responsible for defining cloth
specifications, select style, negotiating prices, planning production and
running an external supply chain.
4) The purchasing team develops the plan a year before store delivery in order
for it to be on schedule. Whereas, Zara has its materials and designing
teams work internally, this allows for faster operations.
5) Zara relies on its internal capabilities for most of its operations such as,
cutting, washing, ironing, packaging and ticketing to support its supply chain.
This helps in facilitating any last minute changes. Therefore, the role of
postponement is very small.

6) Why is it so difficult for M&S to start playing the fashion game? What do you think of
the programs launched by Peter Salsbury in response to the troubles at M&S?

3) If you were on the board of directors of M&S, what questions would you ask of the new
Chairman and Chief Executive, Luc Vandevelde? What if any guidance would you offer to
turning M&S around? Compare M&S approach to that of Inditex, Zaras parent company?