Management Innovation, Technology,

and Entrepreneurship

By Group 3:
Ahmad Taufik Gayatri A. A Karina
Permata Sari

Zara background
In 1974 the Multi-Faber Arrangement (MFA) regulated the
global apparel trade, also established restrictions to
imports of textiles to some market.
In 1975 Amancio Ortega a Spaniard fashion entrepreneur
founded Zara
The first store store featured lowpriced look a like
product of popular, higher-end clothing fashions.
During 1980s, Ortega change the design, manufacturing,
and distribution process to reduce lead times and react
to new trend in quicker way.

Zara: Kids, Man & Woman

Zara: TRF & Home

Doblin Innovation in Zara

Doblin innovation implemented by Zara
Product System
Product Performance
Process
Channel
Brand

Product system and performance

Zara increase cycles of fashion by increasing them from
habitual two to four per year, it produced annually up to
300% more design than its competitor
Zara implemented continues and fast distribution process
Just in time, integrated the delivering of the apparel for
its stores
The returning of the leftovers to its manufacturing center
and picking up of supplies of the production into one
circular route
Zara try to provide the newest fashion trend in affordable
price in the quickest way possible, and for not successful
design in sales IT played an important role for the feeding

Zara Production Process

Channel
Zara used an adaptable model when enter into a new
country, with 3 variant type :
Own store, joint venture, franchise
Open only one store to gather information about the local
culture, customer likes, trends, etc and then make a deep
analysis.
Lear about new market & discover opportunities
Based on that research, make the strategy to obtaining
success and expanded by multiplying its store

Zara Distribution Process

Brand
Zara designed,
manufactured, and sold its
product and instead of
investing in advertising, It
focused in the generation
value for its customers

Types of Market
Types of market that
Zara has been applied is
Existing Market. Because
innovation in Zara is
located at the process
and the product
performance, they make
it faster and better
(High-End).
When Amancio Ortega
opened the first Zara,
its same with another
clothing store. But
during 1980s, there is a

They change the usual

manufacturing and
distribution in clothing line
in a short cycle, the
changes of their design is
as fast that can make an
encouraging in Zara fans
to make repeat visits.
Zara Market is for people
who loves and sensitive to
Fashion. Their products
are 80-85% standardized.

Innovation Level
Innovation level that Zara has is radical, by changing the
paradigm of fashion that follow season, Ortega change all
the trends in quicker way that he called instant fashions.
He changed all of their manufacturing and distribution
process, so the customer can get the new design just in a
few days. Less then 20 years Zara has expanded their
empire around the world

Innovation Strategy Pioneer vs

Follower
PRODUCT FOLLOWER

Politely copy the world-class design instead of hire world-class

designer
Adapt the product offer to match with consumer desire (from the
feedback of the shoppers)
PROCESS PIONEER
Process Innovation: Fast Fashion (Quick production, Fast delivery,
Affordable price)
Established distribution channel
Many brands followed their process innovation (Bershka, Massimo
Dutti, Oysho, Stradivarius, Pull & Bear, Uterque, etc)

Conclusion
In terms of Doblin Innovation, Zaras innovation implemented in
product system, product performance, process, channel, and brand
Zaras type of market is existing market innovate to be faster
and better
The innovation level of Zara is radical changing the paradigm of
fashion
Zaras innovation strategy is pioneer in terms of process yet
follower in terms of product
Innovation of Zaramakes this companyfast and marketresponsive, which is more then enough to keep their top position
among fashion brands

THANK
YOU