ZARA

:
fast fashion

Contents

Creation of ZARA

Environment Analysis

ZARA¶s Strateies

Strategic Proposals

O. April at COEX Mall and Lottt e Young Plaza . in USA 1990 Entering Paris. in France 1991-2004 Spreading to the whole world including Japan(1998) 2007 Entering R.Creation of ZARA 1963-1974 Amancio Ortega Gaona founded Inditex 1975 The first zara store was opened in Spain 1976-1984 Spreading of zara store in Spain 1985 Zara started to enter the overseas market (in Portugal) 1989 Entering New York City.Korea in 30.

Creation of ZARA Inditex Chair man: Amancio Ortega Gaona Location of Headquarter: Coruña in S pain Annual profit: ¼94billion .

Representative success case of Time to M arket Date of Establishment Number of Stores Domestic Expansion(Kor ea) Numbers of Employees The first retail shop was opened in 1975 1440 Stores in 77 Countries 3 Stores were opened at Coex.Lotte Department Store etc.000 are stockman) .Creation of ZARA Zara One brand of the Inditex group Zara's profit makes up 75% of the Indite x.000employees (20. in April30.2007(now 17) 32.

Creation of ZARA .

ZARA¶s Value Chain Fast fashion A contemporary term used by fashion retailers to acknowledge that designs move from catwalk to store in the fastest time (2weeks!) to capture current trends in the market Design Material Team Team Testing Stores Productio n Facility Sales Network An end -customer .

ZARA¶s Environment Analysis External Environment Based on the most recent fashion trends presented at Fashion Week in both the spring and the autu mn of every year. these are designed and manufa ctured quickly and cheaply to allow the mainstrea m consumer to take advantage of current clothing styles at a lower price Competitor Analysis .

ZARA¶s Internal Environment Anal sis Zara¶s SWOT Analysis Verti Zara¶s internal anal sis l tematizati f roduct rocess Abilit to recreate fashion Hi h turnover of roduct Active Use of tores Middle riced Goods Repeated sales of Out-of.tocks Low Qualit Limitation on service Global Fashion roduct RAV Growth of Fashion market Diverse Cultural Area Emerging Newcomers Limitation of Design Copies .

ZARA¶s Core Competence [Core Competency-Tree] Shirts. Jacket OneOne-piece. Belts.1. Perfumes Stores Products meeting the demand for fast-changing fastand short life-cycled fasion lifetrends Increasing Property Values & Increase asset. Jacket Bags. Skirts. Jeans. management Vertical Systematization of Design and Production Process Recreational ablility of Fashion IT System for collecting Customer Information Real estate .

they fortify marketing impact. And They are using CRM to analyze outbound information thoroughly. They manage finance. It is the fastest company among SPA brands. Through this.2. But they inflect their store. They produce a lot of product very little although it is very popular items.Assessment for ZARA¶s Core Competencies Type of Core Competence Developing Importa nce 9 8 8 8 7 8 Comparative Advantage 10 6 7 7 10 7 Main Cause Usually. They have less inventory than other company. They located their produce processing at Spain where close to main market for gripping demand. Most of clothing company needs 6 months to make a new product but ZARA process all producing of new product within 2 weeks. ZARA receive texture from their own supplier. They change the store once a two weeks. new products Purchasing Production Inventory Control Information Management Marketing . They dond t have another ad costs. Through this ZARA improve efficiency of managing. ZARA made a exclusive sales contract with a Chinad s company. account and operating through ERP system efficiently.

3.ZARA¶s Core Competence Analysis[VRIO] [VRIO Framework] Yes .

ZARA¶s Core Competence Analysis[VRIO] [VRIO Framework] Yes Yes .3.

ZARA¶s Core Competence Analysis[VRIO] [VRIO Framework] Yes Yes Yes .3.

3.ZARA¶s Core Competence Analysis[VRIO] [VRIO Framework] Yes Yes Yes Yes .

ZARA¶s Core Competence Analysis[VRIO] Valuable Rare Costly to Imitate YES Exploited by Organization YES YES YES Competitive implications Economic Performance High possibility for maintaining Competitive advantage continuously Above Average .3.

ZARAds Success Factors[4 Core Competencies] .

Creating the value from product differentiation 5. Short period of Collection preparation 3.ZARA¶s Success Factors 5 Keys to Success 1. The principal of small quantity production 4. tili ing the advantage of geographical condition . tili ing shops actively 2.

ZARA¶s Success Factors Active se of Stores 1) Changing the store layout in every 2weeks 2) Located in the very center of the city 3) sing the store to advertising 4) Collecting the data of customers .

ZARA¶s Success Factors Short period of Collection preparation Spending only 2 weeks from The market research to the sales (Normally it takes 6 months) Market Research Design Production Transportation Small mass of product Display Customers Within 1 day Needs Closely located with HQ Tight control of stores .

Without relying on HIT Product Small Quantity Batch Production Maximi ing Product Scarcity Push customers to buy their product immediately Increasing the frequency of visiting the store of customers Let customers open their wallet .ZARA¶s Success Factors Small Quantity Production Continuous Production of New Product.

customers are hard to find the same cloth in the street Customers enjoy the scarcity like high price product with relatively economical price New arrivals by regional groups .ZARA¶s Success Factors Creating the value from product differentiation Because of the fast turnover ratio.

ZARA¶s Success Factors Utili ing the advantage of geographical condition Hiring the spanish and the portuguese instead of people in the third world countries to utili e the advantage of geographical condition By positioning the design and production facility closely. make the fast action to the market situation possible Most of suppliers are located closely .

The principal of small quantity production Zara hits the global market 4. Creating the value from product differentiation 5.ZARA¶s Success Factors 5 Keys to Success 1. Short period of Collection preparation 3. Utili ing shops actively 2. Utili ing the advantage of geographical condition .

Weakness of Current Strategies No Reproduction Limitations of the Service Low Quality Middle Priced goods Lqw Awareness .

Strategic Suggestions More Strategic Targeting Female Customers Knowledge and information through whole stores Asian Market Invasion Continous Improvement of QR System Industrial Diversification .

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