Download - BusinessModel Innovation
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INSEAD p 1
Business Model Innovation
M&S vs ZARA
Gest D201 Case
Sp!in" 200#
$!o% 'udo (an de! )e*den
INSEAD+ ,ontaine-leau & Sin"apo!e
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INSEAD p 2
Co.petin" in Business Models/M&S vs ZARA
B!ie% int!odution to %asion indust!* Business pu!pose
Custo.e! se".ent Custo.e! o%%e! Suppl* p!oess
$e!%o!.ane Co!e o.petenes & o!"ani3ationalst!utu!e
ZARA in te -usiness .odel .at!i4 Conlusions & ta5e6a7a*s
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INSEAD p 8
Co.petin" in Business Models/M&S vs ZARA
9e %asion indust!*/ 7aste & tei.possi-ilit* o% pe!%et %o!easts
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INSEAD p
:* is p!o%ita-ilit* in te4tile so lo7+7en .a!"ins a!e so i"
Atual
De.and
$ossi-ilit* o%e4ess sto5even 7it lo7de.and
$ossi-ilit* o%e4ess de.andeven 7it i"
de.and
E4petedDe.and
$e!%et %o!eastsdo not exist in real life!
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INSEAD p ;
Classi te4tile Business $!oess/12 .ont lead ti.e
Desi"n M%" Dist Sell$u!aseRa7 Mat Disount
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INSEAD p and usto.e! %lo7s
'o7 ost ,asion
Respond to 7atusto.e!s 7ant !eate a de.and ainCop* t!end* %asion
%astC!eate a sto!ee4pe!ieneC!eate a
net7o!5H-!and
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Co.petin" in Business Models/M&S vs ZARA
Brief introduction to fashion industry
Business purpose ?
Customer segment ?
Custo.e! o%%e!
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ZARA Custo.e! %%e!
Se!vie o.pan* / sans and selets
ne7 %asion+ desi"ns+ delive!s and sells
'i.ited va!iet* at an* ti.e9e p!oduts essene is / %!es loo5sDoes te -!and elp
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Za!a Custo.e! %%e!/ a!ate!istis
,!esH,ast Jualit* / 6HK Cost
,ast op*in"% leadin" st*les
,ast delive!*in o7n sto!es
'i.ited editions
Ra7 .ate!ial/ .ediu.
Lnit/ poo!'oo5/ "!and
Custo.e! satis%ation/ %asion at lo7 p!ie
'o7 .oneta!* ost
'o7 ti.e ost/te Za!a e4pe!iene
,le4i-ilit* / 6HK
'i.ited usto.e! va!iet*/ onl* 7at is on displa*
and in li.ited oiesBut eve!* usto.e! is pa!tiipatin"
in te p!oess/
elps dete!.ine te ne4t -at
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Co.petin" in Business Models/M&S vs ZARA
Brief introduction to fashion industry
Business purpose ?
Customer segment ?
Customer offer ?
Suppl* p!oess
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Classi te4tile desi"n p!oess/
C!eative
Desi"n
$!eli.ina!*
Desi"ns
,inal
$!odut
Desi"n
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ZARAdesi"n p!oess/
C!eative
Desi"n
@9S@RCE
and
SCAN
$!eli.ina!*
Desi"ns
C$O
and
SIM$'I,O
,inal
$!odut
Desi"n
ADA$9
and
$9IMIZE
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Step 8/ Desi"ne!s pull ne4t RM -at
ZARA Suppl* $!oess in %ull/; da* lead ti.e!!!
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Si.pli%* &
desi"n ne7p!odut o%%e!
Step 1/ Dellsans .a!5et &u!!ent o%%e!
Sell
$i5
Co.ps
M%"
=Asse.-l*>
Custo.e!sSelet
Dist
Step 2/ Custo.e!s pull p!odut &suppl* ain adapts
Step 8/Custo.e!s pull RM!esuppl*
Co.psSuppl*
Co.pa!in" 7it Dell Suppl* Cain/2 da* lead ti.e+ -ut no on6line desi"n!
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Co.petin" in Business Models/M&S vs ZARA
Brief introduction to fashion industry
Business purpose ?
Customer segment ?
Customer offer ?
Supply process ?
$e!%o!.ane
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:* is p!o%ita-ilit* at ZARA so i"+7en .a!"ins a!e so lo7/ value
AtualDe.and
E4ess sto5 and un.etde.and a!e avoided -*stoppin" p!odution
7en .a!5et satu!ates
E4petedDe.and
S.all
-ates
Za!a as a
'eanEnte!p!ise
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:aste eli.ination at ZARA/e4a.ples
Adve!tisin"/eliminated for not necessary in a pull model; too slow anyway and our offer islocalised
Disount Sales/eliminated through quic response the strategy that we are always "#elow$ demand
Desi"n/largely out%sourced to the "maret$ andreplaced #y acti&e scanning ' greatly facilitatesa"process%#ased organisation$
$!odut o.ple4it*/( types) si*es) and coloursgreatly reduces the product complexity) allows us tooperate with reduced in&entories and woring capital '
with little loss in customer &alue
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Co.petin" in Business Models/M&S vs ZARA
Brief introduction to fashion industry
Business purpose ?
Customer segment ? Customer offer ?
Supply process ?
+erformance ? Co!e o.petenes & o!"ani3ational
st!utu!e
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Co!e o.petenes at ZARA
Sannin"/ fashion trends) maret trends
,ast suppl* ain/ , wee final productioncycle) two day out#ound logistics) fast
adaptation of leading trendsI9 s*ste.s/ li#rary of models) C-./C-0 1
,le4i-le p!odution s*ste./ small and
flexi#le sewing shops in 2alicia
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INSEAD p 28
!"ani3ational St!utu!e at ZARA
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INSEAD p 2
Co.petin" in Business Models/M&S vs ZARA
Brief introduction to fashion industry
Business purpose ?
Customer segment ? Customer offer ?
Supply process ?
+erformance ? Core competences organi*ational
structure
ZARA in te -usiness .odel .at!i4
ZARA i i i
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INSEAD p 2;
ZARA positionin"/Indust!ialisationStep 1/ standa!disation
Suppl*$!oess
$!odut %%e!
)i" %asion
=Dio!+Canel+ P>
M&S
Mass
.e!ants
Ri"id 'ine%lo7
Manual
sop
Bat%lo7
)i"usto.isation
So.eusto.isation
)i"standa!disation
ZARA iti i
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INSEAD p 2
ZARA M&S
Mass
.e!ants
Ri"id 'ine%lo7
Manual
sop
Bat%lo7
)i"usto.isation
So.eusto.isation
)i"standa!disation
Indust!ialisation/ Step 2
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INSEAD p 2#
Indust!ialisation/ Step 2 St!ate"i value "ained %!o. positionin"
Suppl*$!oess
$!odut%%e!
,le4i-le$!oess
Ri"id
$!oess
)i" usto.isation'o7 volu.e)i" unit .a!"in)i" ?ualit*
)i" %asion/
ut o% p!ie
ZARA
M&S/
ut o%,asion
)i" standa!disation)i" volu.e'o7 unit .a!"in
'o7 ?ualit*
I d t i li ti St 2
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INSEAD p 2
Indust!ialisationStep 2/!ede%inition o% lassi indust!* t!ade6o%%s
Suppl*$!oess
$!odut %%e!
Canel
ZARA M&S
Mass.e!antsContinuous%lo7
Manual
sop
Bat%lo7
)i"usto.isation
Mediu.usto.isation
'o7usto.isation
???
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INSEAD p 2
Co.petin" in Business Models/M&S vs ZARA
Brief introduction to fashion industry Business purpose ? Customer segment ? Customer offer ? Supply process ? +erformance ? Core competences organi*ational structure
? 3-4- in the #usiness model matrix
Conlusions & ta5e6a7a*s
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INSEAD p 80
9a5e6a7a* Q1/
ZARA lean ente!p!ise in %asion indust!*
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INSEAD p 81
ZARA vs M&S su..a!i3ed/9e 'ean and ,oused Ent!ep!ise
ZARA/
9)E 'EAN EN9ER$RISE
M&S/
9)E S'@9IN S)$
Clea! ,C@S on one
0usto.e! t*pe & on one
p!o0ess
M@'9I$'E &
SIM@'9ANE@S GA'S
p!o1i-it 0lea! %o0us
@NIJ@E & E$'ICI9
(A'@E p!oposition
M@'9I$'E & IM$'ICI9
(A'@E p!opositionS$REDIC9AB'E & C'EAR
$RCESS to -e i.p!oved
@N$REDIC9AB'E & ,@ZZO/
no p!o0ess to -e i.p!oved
St!ives %o! $ER,EC9IN SA9IS,IED 7it1 !ea01in" a
t1!es1old pe!%o!.an0e
See5s to E'IMINA9E an*
%o!. o% :AS9E
9'ERA9E a 0e!tain a.ount
o% unavoida-le ECESS
Mana"es 0usto.e!
,':S
Rea0ts to 0usto.e!s as a
se?uen0e o% eventsH9ASLS
$@''S 0usto.e!s into t1e
p!o0ess
$@S)ES 0usto.e!s t1!ou"1
t1e s*ste.
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INSEAD p 82
$!oess ,ous su..a!i3ed/9e 'ean Ent!ep!ise %!o. 9o*ota P
9)E 'EAN EN9ER$RISEClea! ,C@S !e/ p!oess %itste usto.e! se".ent=s>
1 C'EAR ,C@S RE/
$RD@C9 & $RCESS
@NIJ@E & E$'ICI9 (A'@E
p!oposition
And on (A'@E
$REDIC9AB'E & C'EAR
$RCESS to -e i.p!oved
2 IM$R(E 9)E
$RCESS
St!ives %o! $ER,EC9IN & E'IMINA9E
See5s to E'IMINA9E an* %o!.
o% :AS9E
:AS9E
Mana"es patient ,':S 8 MANAGE ,':S
$@''S patients into te p!oess & $@''
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INSEAD p 88
9a5e6a7a* Q2/
-usiness .odel li%e *les=and dis!uptive -usiness .odels>
- d l l % l
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INSEAD p 8
S6u!ve/ -usiness .odel li%e *les
I.p!ove.entE%%o!t
Bus Model $e!%o!.ane
$!o-e & lea!n Do.inant desi"n
e.e!"es =ind standa!d>
Co.petition si%tsto p!oess %eatu!es/ost+ ?ualit*+ speed
'i.its toi.p!ove.ent appea!
Matu!it* settles in
D - d l
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INSEAD p 8;
Dis!uptive -usiness .odel an"e/ setup
9i.e
$e!%o!.ane/ M&S ?ualit*=RM+ ut+ %it+ va!iet* P >
:ile usto.e!s an"e/M&S ?ualit* as pe!eived -*
M&S o! ;0K 1
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INSEAD p 8