The reclusive spanish billionaire behind zara s fast fashion empire. This made inditex gain a competitive advantage, which is quick response to the market requirements. Hbs professor pankaj ghemawat and iese professor jose luis nueno prepared this case. It for fast fashion based on harvard business school case study. The companys strategy involves stocking very little inventory and updating collections often to deliver the latest emerging fashion trends. Harvard business school, 2006 business logistics 35 pages. Zara it for fast fashion harvard business school publishing. Business model overview and research opportunities felipe caro. Zara has adopted a unique way in its scm by starting these branches when compared to other fashion retailers who do not personally own such kind of. At the beginning of a season, a typical retailer would have placed orders for at least 80 percent of the garments it will offer, according to a harvard business school case study on zara.
Zara can design, produce, and deliver a new garment to its. A business model, offers saez viadero, refers to a business that is very well organized to serve its customers, and establishes the standard for quality within the. This report included in my global lotistics class of kyushu business school. Nov 23, 2015 i would like to published my report of zara. It for fast fashion 4 case synopsis zara, one of the worlds. Analysis of the problems encountered in business processes and operations 4. The concept of zara is to offer its product with fashion design and provides products at reasonable price d. Zara can move from identifying a trend to having clothes on sales of rs. Fast fashion retailer zara is built on speed and agility. In its center, a glass building sits amid acres of green lawn. Salespersons at stores with pdas communicate and inform the cube so fast that enables zara to respond market in two weeks. Instead of predicting months before a season starts what women will want to wear, zara observes whats selling and whats not and continuously adjusts what it produces and merchandises on. Nov 23, 2009 business processes process improvement supply chain management work force management.
Zaras secret for fast fashion hbs working knowledge harvard. How zara took over the industry using fast fashion duration. Rather than focusing on the actual factory owner, it evaluates the broader structural and institutional factors, plus a particular western retailer strategy of fast fashion, that together explain the practical inevitability of such tragedies. Young people pursue fashion but dont have enough money. Zara inditexs oldest brand, zara, was the pioneer of a new fashion category, called fast fashion trendy catwalkinspired items manufactured quickly and sold at affordable prices. It was the most significant and one of the most prominent brand not just of. The four companies shown above have very different business models. Inditex owned much of the production and most of its stores. Victor martnezdealbenizy april 25, 2014 to appear in retail supply chain management.
Zara case study harvard business school term paper warehouse. Zara is wellknown as its high fashion, lowcost business model. The business system that had resulted see exhibit 12 was particularly distinctive in that zara manufactured its most fashion sensitive products internally. Fast fashion harvard business publishing education. Focuses on inditex, an apparel retailer from spain, which has set an extremely fast response for its zara chain. The result is a superresponsive supply chain exquisitely tailored to zaras business model. Its global profile suggests that more than 60% of the sale for zara comes through women while 25% sales is made from the sale male of clothing while remaining 15% sales is covered by children section.
Fast fashion case solution and analysis, hbs case study. The other inditex chains were too small to justify such investments but generally did emphasize reliance on suppliers in europe rather than farther away. Case study about zara businessmarketing bibliographies in harvard style. Today, it has become the central headquarters for zara. Discuss about the evaluation of zara business strategy. This paper seeks to examine the various actors responsible for the recent tragedy at a clothing factory in bangladesh.
Fashion retailer zara has achieved spectacular growth via a distinctive design ondemand operating model. This case describes this model and outlines a number of challenges facing the company, with a particular emphasis on its international expansion. Powered by zara s success, inditex has increased in 39 countries, making it one of the worlds most complete retail. Zara case study report case summary this case study is. Quantitative models and empirical studies, 2nd edition, narendra agrawal and stephen a. New style ranges are frequently introduced in the market and thus zara is moving parallel to market trends. Describe zaras business model and its superiority over other competitors in the industry. Its been a meteoric rise for ortega, the inventor of fast fashion who has changed the way we shop forever. Zara it for fast fashion after analyzing the case zara. Technology also helped keep zaras costs under control. Zaras secret to success retail deakin business school. The update covers significant developments, current executives, key readings, and basic financials. Managing stores for fast fashion case solution, pablo isla, chief executive officer of zara wanted to improve operational efficiency in the management of the. Zara fast fashion summary of harvard case study free essays.
Focuses on inditex, an apparel retailer from spain, which has set up an extremely quick response system for its zara chain. Managing stores for fast fashion case solution and. Fast fashion harvard business school multimedia case 9703416. By defying conventional wisdom, zara can design and distribute a garment to market in just fifteen days. At the time of the case, the company relies on an outofdate operating system for its store terminals and has no. Inditex is the parent company of six different apparel retailing chains that includes massimo dutti, pull and bear, bershka, stradivarius, oysho, and, most importantly, zara. Fast forward 40 years and zara s arrival in hawaii marked the companys 7,000th store. Zaras secret to success retail its pricing strategy t1. By defying conventional wisdom, zara can design and. Case summary this case study is about how zara managing its retailing and logistics in becoming the most leading apparel retailer in the world. Zara inditexs oldest brand, zara, was the pioneer of a new fashion category, called fastfashiontrendy catwalkinspired items manufactured quickly and sold at affordable prices. Major contributors to the companys success include.
Clothes shopping propensity and satisfaction with clothes of consumers using spa casual brands. But zara often beats the high fashion houses to the market and offers almost the. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording, or otherwisewithout the permission of harvard business school. Nov 12, 20 it is the flagship chain store of the inditex group. Its the headquarters of zara, the company that introduced the idea of fast fashion some two decades ago, then developed. Fast fashion case solution, focuses on inditex, an apparel retailer from spain, which has set an extremely fast response for its zara chain. Zaras product development teams attended high fashion fares and exhibitions to translate the latest seasonal trends into the designs. Industry conventional business model zaras business model. This article is based on the authors research on inditex and its competitors, as well as on data from the harvard business school case zara. Through its just in time or lean business model, zara breaks the fashion supply chain rules by holding low stock and updating its collections continuously. Industry conventional business model zaras business model supply chain reliant on outsourcing production. Zara is a small clothes manufacturer in the north west of spain and a pioneer of the fast fashion business model which eliminates fashion misses risk. Highly responsive, vertically integrated supply chain time to market high due to outsourcing. Business processes process improvement supply chain management work force management.
It is the flagship chain store of the inditex group. It for fast fashion describe zara s business model and its superiority over other competitors in the industry zara is one. Zara is wellknown as its highfashion, lowcost business model. The reclusive spanish billionaire behind zaras fast. Hbs cases are developed solely as the basis for class discussion. To better understand the business behind the fashion, she needs to consider a key business concept that helps drive success at companies like zara. Dec 09, 2015 zara is a small clothes manufacturer in the north west of spain and a pioneer of the fast fashion business model which eliminates fashion misses risk. Instead of predicting months before a season starts what women want to wear, zara is what sells and what does not and continuously adjusts. Hence, a super fast rate of operational responsiveness to customers was maintained and the dc was more of a place to merchandise than merely for storage. Just in time was widely used as a business term in the 1980s but from 1990 onwards the term lean has been used across most industries to describe this methodology. Managing stores for fast fashion harvard case study solution and hbr and hbs case analysis. Please do not distribute without the authors permission. Suitability of locating inditex in galicia spain for the emergence of apparel retailing powerhouse.
Fast fashion 2006 this case flash forward provides an update on inditex and zara since they were covered in the related case study zara. At the time of the case, the company relies on an outofdate operating system for its store terminals and has no fulltime network in place across stores. Andrew mcafee is an associate professor at harvard business school. Feb 21, 2005 2212005 spanish retailer zara has hit on a formula for supply chain success that works. Case study about zara businessmarketing bibliographies. Zara can design, produce, and deliver a new garment to its 600plus stores worldwide in a mere 15 days. Harvard business school in 2003, zara s cio must decide whether to upgrade the retailers it infrastructure and capabilities. Establishing zara s fast fashion apparel chains in galicia spain was a noble idea as the case study pointed that by late 1990s, only us exceeded western europe in terms of total retail sales where chains accounted for about 85% and 70% of the total sales respectively. Zaras secret for fast fashion harvard business school. Zara is one of six brands, which was launched by inditex group. It for fast fashion harvard business publishing education. Since then, zara has touched the new benchmarks of the success in the fashion retailing business.
Mcafee, andrew, anders sjoman, and vincent dessain. Zara it for fast fashion harvard business school publishing cambridge. Inditex is an example of a company that is highly effective at driving alignment between its operating model and its business model. In 2003, zaras cio must decide whether to upgrade the retailers it infrastructure and capabilities. The result is a superresponsive supply chain exquisitely tailored to zara s business model. How zara used lean to become the largest fashion retailer. The fast world of fast fashion an npr series looks at the fast fashion business, the people behind it and its environmental impact. Lead times and time for new product launches are less. Zara at the moment is the worlds largest apparel brand with more than 5,000 retail stores worldwide in more than 82 countries. The case is based on the retail chain zara located in spain, it is regulating under the global value chain, and it is offering premium quality products for both the middle class and the higherclass customers. Fast fashion spanish retailer churns out 11,000 new items every season and delivers new goods twice a week. But in 2002, faces important questions about future growth.
It has succeeded in the selling of fashionable clothes and accessories gabrielli, et al. Business strategy of fast fashion a case study of zara. Sep 12, 2018 fast forward 40 years and zara s arrival in hawaii marked the companys 7,000th store. The global fashion retailer inditex, best known for its zara brand, continues to chart the course of fast fashion through the intimate alignment between its operating and business models. Strategic supply chain management of zara fashion store.
Harvard business school focuses on inditex, an apparel retailer from spain, which has set up an extremely quick response system for its zara chain. Powered by zaras success, inditex has increased in 39 countries, making it one of the worlds most complete retail. That means that zara can quickly the unpredictability in fashion, it is quite likely that you will end identify and catch a winning fashion trend, while its competitors. Nov 14, 20 zaras fastfashion edge zara, flagship of the worlds no. Zara s fastfashion edge by susan berfield and manuel baigorri november 14, 20 arteixo is a small town in northwestern spain near the atlantic, surrounded by fishing villages. Fashion retailer zara has achieved spectacular growth via a distinctive designondemand operating model.
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