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1、Fast Fashion,Index,Company Profile Unique Business Model Strategies ZARA Analysis Recommendation,Company Profile,ZARA is： Spanish clothing and accessories retailer Based in Arteixo, Galicia Founded in 1975 by Amancio Ortega and Rosalia Mera The most profitable brand of the Inditex group.,Video,http:
2、/youtu.be/qhCM0F81vEg,Objectives,Develop system the requires short lead times Decrease quantities produced to decrease inventory risk Increase the number of available styles and/or choice,Unique Business Model,Design,Distribution,Sourcing & manufacturing,Retailing,Business Model (contd),Design: Crea
3、tive Teams Different sources of ideas (store managers, TV, internet, fashion on street & fashion show, trend spotter),Business Model (contd),Sourcing & Manufacturing Assistance of purchasing offices in Barcelona & Hong Kong More than 200 external suppliers In-house production (40 % of clothes produc
4、es internally, 60 % externally),Business Model (contd),Distribution Central distribution center in Arteixo Satellite center in Argentina, Brazil and Mexico Center works on dual-shift basis Equipped with mobile tracking system Delivery on Europe takes 24 hours and outside Europe takes 48 hours Schedu
5、led shipments by time-zone,Business Model (contd),Retailing consists of merchandising and store operations Stores places in premium streets and city centers Set fabulous window-display store Main retailing tactic: create scarcity Very low advertisements Aims: reduce inventory and marked-down prices,
6、Competitive Advantage,Fast Production,Product Variation,Low level of inventory,Efficient distribution system,Turnover of product is high,Cost leadership,Fast production,Ability to design and finish goods in store within 4 to 5 weeks Very quick to get designer-influenced products into their stores,Ke
7、y of ZARAs Advantages,Strategies,Design,Vertical Integration,Marketing,Technology System,Pricing strategy,Technology System,Order information flow to store ordering system Improving inventory system Product distribution system,HRM & MIS,Training Designer Training Store Manager Training Buyer Connect
8、ion with distribution system and IT system,Design,Coordinate with R&D and also with stores itself to catch new trends Ability to produce fast fashion,Marketing,Market Penetration: Own subsidiaries Joint Ventures Franchising Strategic location of stores, Tracking consumers preferences analysis Low co
9、st of advertisements (0-0.3%),Pricing Strategy,Market based prices Analysis of market Customer sensitivity to prices,Central distribution system in La Coruna, Spain In-house production Short lead-times Forward vertical integration Reduces bullwhip effect Backward vertical integration Reduces costs &
10、 Improves quality,Vertical Integration Supply Chain,Production & Distribution,Centralized distribution Maintain quality Cost leadership High Bargaining power to supplier Distribution system to fast distribution,ZARA Analysis,ZARA,Porter Analysis of ZARA,SWOT Analysis,Recommendation,Change the system
11、: Centralized Transform Decentralized Build decentralized distribution & production in each region Tend to fastest in producing new product (design production& distribute Keep maintain the value chain,Decentralized Model Value chain,Reference,Carmen, L. and Ying, F. (2009) Internationalisation of th
12、e Spanish fashion brand Zara 13(2), pp.279-296. Marilyn , H. and Judy, N. (2010) “Exploring SWOT analysis where are we now?: A review of academic research from the last decade.” Journal of Strategy and Management, 3 (3 ),pp.215-251. Saurabh Jindal (2012).Zara Strategy Analysis SWOT 5 Forces. ONLINE
13、Available at: Last Accessed 9 March 2013.,Reference,Images of Zara (online) Source: Company profile of Zara (online) Source: Alan, B. and Philip, J. (2001) “Does Training Generally Work? The Returns to In-Company Training.” Industrial and Labor Relations Review, 54(3), pp. 647-662,THANK YOU FOR ATTENTION,THANK YOU FOR ATTENTION,