Zara Industry

Topics: Supply chain management, Customer, Management Pages: 2 (410 words) Published: November 21, 2010
Information Systems
Zara industry

The Zara case seems to break the rules of the fashion world industry with their blend of technology-enabled strategy. Because Zara is highly vertically integrated, it allows the firm to keep processes within the company. These elements distinguish the company from its competitors. The flatteners that are relevant to the Zara case are mainly insourcing, workflow software and supply-chaining. By applying insourcing, Zara can ensure their products are made under acceptable labor conditions, therefore protecting its brand. Zara is vertically integrated, producing practically all of their goods themselves. Furthermore, this process saves the firm a great deal of time and hassle, also lowering its risks (no suppliers). By insourcing most processes, the firm is able to save a lot more time. Unlike some of its competitors Zara is able to save time by not wasting effort arranging inventory: it is always ready to go on the racks. Therefore the sales personnel have more time for the customers’ needs. It also enables them to customize depending on the season in fashion. The firm’s inventory is changed almost twice a week, allowing customers to have a access to a wide variety. This pressures customers into purchasing items at full price because there is not guarantee they will be there at the end of the week. Also, it encourages customers to visit the stores often. Insourcing their processes allows Zara to quickly adapt to changing styles and enables them to tailor to the tastes to its local clientele. Other companies in the fashion industry are only able to change inventory about four times a year. In addition, another flattener that is relevant to Zara is the workflow software. Zara’s standards and technologies allow the work to flow. Technology is integrated in the firm’s business processes, thus allowing everyone to communicate. This process can help the firm organize data and better meet customers’ needs by questioning them. Zara...
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