Zara - Is need quarter in La coruna Spain - Growing textile and apparel industry - International center for the fashion business.

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Presentation transcript:

Zara - Is need quarter in La coruna Spain - Growing textile and apparel industry - International center for the fashion business

In the apparel industry, as in many other industries, globalization has brought changes that opened up new strategic options for players in the market. - For example Zara reject spring and autumn clothing collections in favor of “live collections”

CompetitionCompetition - Competitors focus on Spring/autumn collection such as fashion week of Armani, Barburry.

CultureCulture Some product designs to physical, cultural, or climate differences. - Smaller size in Japan. - Special women’s clothings in Arab countries - Differences seasonal weights in South America

Customer expectations.Customer expectations. Zara’s focus : - Reasonable quality - Changing product lines - Dynamic fashion ‘ icons ’ - Relatively high fashion image Manager must coordinate the efforts of sale people who double as wired grass roots market researchers responsible for punching in trends, customer comments, and orders.

Economic AmbienceEconomic Ambience Zara compensates for higher costs by minimizing advertising, cutting inventory expenses, and adjusting to fashion trends quickly. By planning - Selling season - Testing the market - Placing smaller initial orders - Reordering more frequently - Retailers can avoid forecast errors and inventory risks

SummarySummary - Zara’s success stems from a number of competencies that span design, production, logistics, distribution, and retailing. - They must coordinate material flows from dozens of suppliers and transmit order to factories and delivery status to a thousand-plus storefronts.