Zara Business Case - amazonia.fiocruz.br

Zara Business Case - assure

Zara as of manages up to 20 clothing collections a year. Ortega initially named the store Zorba after the classic film Zorba the Greek , but after learning there was a bar with the same name two blocks away, they rearranged the letters molded for the sign to "Zara". It is believed extra "a" came from an additional set of letters that had been made for the company. Ortega opened additional stores throughout Spain. During the s, Ortega changed the design, manufacturing, and distribution process to reduce lead times and react to new trends in a quicker way, which he called "instant fashions". The improvements included the use of information technologies and using groups of designers instead of individuals. In , Amancio Ortega set up a parent company for Zara before going for the global expansion, and in , the company started its international expansion through Porto , Portugal. In September , Zara launched its online boutique. Zara introduced the use of RFID technology in its stores in The RFID chips are located in the security tags which are removed from clothing when it is purchased and can be reused.

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Agile Supply Chain of Zaras Zara Business Case

Role Zara Business Case information system is also evaluated within its business operations, strategies and processes. In the Cxse, consideration of upgrading the information system of Zara will be addressed. Strengths and Core Competencies of Zara With an increase of competition, companies started the Zara Business Case of core products, technologies and markets, which were close to their future and current capabilities of growth. Prahalad and Hamel stated that key strategic focus of firms was on the identification and exploitation of core competencies. Zara has been successful to bring people from different functions for information sharing about the markets and develop more innovative products. It impressively takes a short time p for transforming the ideas into their store offerings. Information technology is the main player in the success of Zara, which manages every aspect of the product design, production and distribution.

How it works

The information flow is constantly managed in every department. Zara keeps the logistic as an essential capability for supply of products to merchandise at the right time. Once the garment has been made, it is delivered to one warehouse and shipped to the stores within a week. Employees of Zara do not face hurdles of communication, instead, they use the enterprise data efficiently to increase the pace of coordination, Zara Business Case fast respond and speedy decision-making. Zara is a fast responder to demands of young, and fashion related dwellers with their quick Zara Business Case tastes. Zara involves the people of different functions for new products development through information sharing Cravens and Piercy Information collected from customers is saved in the database at headquarter. The feedback from customers and record sales is integrated with design, manufacturing data and distribution functions.

Resolve complaints to succeed in business

Designers check the information collected about the feedback of products and use this information to modify or produce new products. In this way, Zara spots trends earlier and adjusts the stock within days of the week. Through the strong IS, Zara has been able to manage thousands of trim and fabric specifications Motiwalla This explains why Zara can be so market-oriented and identify its potential markets and customers accurately.

Information System of Zara improves its competitiveness According to Porter and Millerthe information technology encompassed all those information, which businesses create and use all linked technologies for information processing. Although the IS of Zara makes a useful connection between distribution centers, store keeping units and conveyor belts, it requires Zara Business Case assistance for transferring the garments from conveyor belts Bsiness boxes. Zaar is the important opportunity for Zara to reduce the human intervention and improve the process flow for distribution centers. Other features of IS, which add value for Zara include the standardization of information about clothing, accurate and correct design preparation, inventory management, Zara Business Case making and less involvement of humans in distribution facilities.

For instance, it is integrated with optical reading tool that can sort more than pieces per an hour. On one hand, the system is stable, simple to operate and easy to maintain, thus it is able to support Risk Management Construction Projects Zara Business Case to respond quickly to customer needs. The system upgrading will call for a large amount of expenditure in operating, employee training and maintenance, which, Cqse be risky to ZARA. However, ZARA is building an increasingly large company on an increasingly outdated operating system. Minor annual increment indicates slow development in ZARA.

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Besides, the lack of network equipment in stores results in a loss of efficiency. Last but not the least, employees have not been given enough ability to check up learn more here inventory balance in both their own and other stores, which Zara Business Case not beneficial to improve their participation or communication. Possible solutions are provided here. Lastly, it would be wise for the C-suites to authorize employees to look up the inventory and transaction information in store.

In this way, employees can have more access to order information. They know what items sell well and they can adjust the strategy even more quickly. In the meantime, a higher level of participation will contribute to the enthusiasm and satisfaction among employees, promoting them to work efficiently.

Before upgrading the system, Zara requires the update of network infrastructure. The new software will be initially installed on headquarter and then on POS. However, the current system of Zara should be kept in running until the new system works fully with reliability and confidentiality Mcafee, Dessain and Sjoman, Conclusions In concluding remarks, the performance of Zara is the result of a proper combination of IT and business.

Role Zara Business Case Information System at Zara is also analyzed with reference to competitive advantages in the market.]