LECTURE NOTES

Supply Chain Modeling

Week 11
Session 11
Case Study: ZARA

ISYE8020 – Supply Chain Modeling

 LEARNING OUTCOMES
After discussing the case study, participants will be able to do:

1. Simple analysis of competitive economics in terms of both operating economics and

capital efficiency.

2. Strategic graphing of the links among ZARA’s choice, particularly ones connected to its
quick response capability, and the ways in which they create competitive advantage.

3. Examination of the threats to and likely sustainability of ZARA’s competitive advantage

over time.

4. Discussion of supply chain strategies for globalization.

DISCUSSION QUESTIONS:

The questions to be answered and their related chapter in the main textbook.
1. With which of the international competitors listed in the case is it most interesting to
compare Inditex’s financial results? Why? What do comparisons indicate about
Inditex’s relative operating economics? Its relative capital efficiency? (Chapter 9)

2. How specifically do the distinctive features of ZARA’s business model affect it

operating economics? Specifically, compare ZARA with an average retailer with similar
posted prices. In order to express all advantages/disadvantages on a common basis, you
may find it convenient to assume that on average, retail selling proces are about twice as
high as manufacturers’ selling prices. (Chapter 5)

3. Can you graph the linkages among ZARA’s choices about how to compete, paricularly
ones connected to its quick-response capability, and the ways in which they create
competitive advantage? What does the excercise suggest about such capabilities as bases
for competitive advantage? (Chapter 8)

ISYE8020 – Supply Chain Modeling

4. Why might ZARA “fail”? How sustainable would you calibrate its competitive
advantage as being relative to the kinds of advantages typically pursued by other apparel
retailers? (Chapter 1)

5. What do you think of ZARA’s past international strategy? Evaluate, in particular, its
strategy (product) market selection, its mode of entry, and its standardization of its
marketing approach? (Chapter 3)

6. What is the best way to grow the ZARA supply chain? How, specifically, do you see
prospects in the Italian market? And more broadly, what do you think about the strategy
of focusing on Europe versus making a major commitment to a second region? (Chapter
1)

7. What other strategic recommendations would you make to Inditex CEO Jose Maria
Castellano? (Chapter 10)

ISYE8020 – Supply Chain Modeling

 DAFTAR PUSTAKA
Dittmann, J. Paul (2013). Supply Chain Transformation. New York: McGraw-Hill.
Ghemawat, P. (2003). ZARA: Fast Fashion. Harvard Business School Case.

ISYE8020 – Supply Chain Modeling