Beruflich Dokumente
Kultur Dokumente
NT
Case
study of any one
international retailer
Submitted
by
MANU MATHEW
3rd yr
BSC in FT
ZARA
VISION
ZARA is committed to satisfying the desires of our
customers. As a result we pledge to continuously
innovate our business to improve your experience. We
promise to provide new designs made from quality
materials that are affordable
Mission Statement
Through Zaras business model, we aim to contribute to
the sustainable development of society and that of the
environment with which we interacts.
BRAND POSITIONING
Zara among others, has about 3,000 stores worldwide
H&M, based in Swede n, has 2,500 (when you include its
smaller lines of stores); and Mango, based in Spain,
1Question 1 :
What advantage does Zara gain against the
competition by having a very responsive supply
chain?
Answer 1 :
They sells most of it products on half markdowns in
its store.
Short lead time for new variety increases there
market.
Increase in number of there retail store.
Increase their flexibility in providing new styles to
coustmer.
Question 2 :
Why has Inditex chosen to have both inhouse manufacturing and outsourced
manufacturing? Why has Inditex maintained
manufacturing capacity in Europe even
though
manufacturing in Asia is much cheaper?
Answer 2 :
To fullfill there uncertain and predictible demands.
To launch their new styles according to there targets
( 5 to 6 week).
To setting their trends quickly to compete with there
competitors in market.
To control their demand.
They choose europe because there max number of
stores are in europe and there they also have a quick
and flexible sources which helps them to lauch their
designs quickly.
Question 3 :
Why does Zara source products with uncertain
demand from local manufacturers and products
with predictable demand from Asian
manufacturers?
Answer 3 :
There main target is to launch new design after every 5
to 6 week to attract the coustmer so at that point cost
doesnt matter that much so they utilize there local
manufacturers because they are quick and flexible so
thats why they source uncertain demand from them.
And outsource the predictable demand from asia at low
cost.
Question 4 :
What advantage does Zara gain from
replenishing its stores multiple times a week
compared to a less frequent schedule? How does
the frequency of replenishment affect the design
of its distribution system?
Answer 4 :
It allow them to match supply closely to the coustmer
demand other than there competitors. In this manner
there distribution system keep them up to date to
derived the coustmer interest towards them.
Question 5 :
Do you think Zaras responsive replenishment
infrastructure is better suited for online sales or
retail sales?
Answer 5 :
Responsive replenishment is better suited for the retail
stores because in online sales there is a time to deliver
the product to the coustmer so in this time we can
manage our product to parcel the coustmer. But in
retail store we have to display the products.
CONCLUSION
1.Zara has an unordinary supply chain, which gives
them a highly
competitive advantage.
2. Zara has successfully introduced a new, unique
business model
into the apparel manufacturing and retail industry.