zara case study
DESCRIPTION
Zara case studyTRANSCRIPT
GROUP 3
TEAM | SEHNAZ | RAHUL | DHRUV | MEGHA
*KINDLY REFER TO THE NOTES ON CERTAIN SLIDES FOR EXPLANATION.
SNAPSHOTS
1. What is fashion
2. Analysis of ZARA
3. Blue ocean strategy
4. What should ZARA do regarding its IT system?
5. Learning from ZARA
WHEN WE TALK ABOUT
FASHION. WHAT IS THE FIRST THING
THAT COMES TO YOUR MIND?
WHAT DO THESE MODELS HAVE IN
COMMON?
36-24-36
EVEN YOUR RIVALS KNOW THAT
ZARA CUTTING EDGE
PORTER FIVE FORCES
TIME FOR CHANGE?High competitions
Price wars = low profit margin
Exploiting existing demand
OVERSATURED MARKET
= RED OCEAN
HOW DO WE CROSSOVER TO
THE BLUE OCEAN?
ZARA+
FAT IS THE ‘NEW THIN’
WHY?
THE ISSUES
1700 stores globally but only 45 in USA
REASONS:
USA obesity percentage is higher than European counterparts
ZARA does not produce clothes for larger size people.
http://abcnews.go.com/GMA/video/zara-fashion-line-sizes-coming-time-17726650
THE WORLD IS GETTING BIGGER
SHOULD
ZARA
MODERNIZE HER
IT SYSTEM?
WHAT IS ZARA USP?
First to deliver the latest fashion
Earn the first producer advantage
Fast supply chainLaunching new design within 3 weeks
WHY CHANGE THE SYSTEM THAT WORKS?
• Rapid globalization of stores
• Current system becoming obsolete
• Delicate system with limited workforce to repair it
• Keep up with current technology so
ZARA doesn’t get left behind!
THE BEST WAY TO IMPLEMENT IT?
1. Test-drive new system in the new store first
2. Identify potential problems and rectify them
3. In the mean time, the company will have two software running for a period of time
4. Operating cost will be higher but our supply chain won’t be affected
5. So this way ZARA doesn’t lose her USP
6. Once the system is running smoothly, we will start introducing these system in the old stores
LEARNING FROM
THEY UNDERSTAND WHAT IS THE MOST IMPORTANT ASPECT OF THE
INDUSTRY.
RAPIDLY-CHANGING TASTE OF THE CONSUMERS
THANK YOU