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Zara Staying Fast & Fresh

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by

Grace Ryan

on 10 March 2014

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Transcript of Zara Staying Fast & Fresh


: Staying Fast & Fresh

Warehouse Expansion Asia
Profitable Market
Huge growth
May develop market dominance
Reduced shipping costs
New Items
Shorter Lead time
New target markets
Internal Analysis
SWOT
Are they well aligned?
Vertical Integration enables for complete control & fast pace

POS/PDA info & frequent communication ensures right product for right store, effective supply & demand forecasting to meet consumer needs/desires

Franchising allows to test markets

Threats into the Future
Increasing Prices
Competitors
Zara's Generic Strategy
Differentiation strategy

Design, production and distribution central

Short lead time
Strengths
Weaknesses
Leadership

No direct marketing

High Urgency/ Low Inventory model

Forecast & optimization

Store Design

Large quantities of Design choice

RFID
Merchandise


Website : Room for innovation




Opportunities
Internal competition

Online presence

Threats
Distribution : Shipping costs


Website : Run independently, OOS




Resource Based View
Company face


Customer service


Zara specific skill set


Product/ Customer knowledge
Employees
Efficient data collection


Accurate Demand forecasting


Time saving


Ease of operations
Technology
Specific skill set


Fashion knowledge


Adaptable


Dynamic Design Team
Control of distribution/operations

Fast pace

Negotiation open for low costs


Vertically Integrated Supply Chain
Provides a 'plan B' if desired price cannot be met


Provides choice & variety
External Suppliers
Store Locations
Recognised Internationally


Credible


Maintains 'Up-Market' Image


Differentiates Company





Brand
Prime locations optimise awareness


Serve as a form of indirect marketing


Ensures a sufficient level of footfall for store
V
R
I
N
Value

Rarity

Inimitability
Non-substitutable

Michael Porter's 3 generic strategies
Generic Strategies
Zara 's Business Strategy
Zara's Operational Strategy
Vertically integrated

J.I.T Policy - High urgency/ low inventory

Short lead time - Design, production & distribution are central and merchandise reaches shop floor within 3weeks
Differentiation strategy



Communication



Franchising
Business & Operations Strategy
Future Threats & Expansion
Full transcript