Case Study

Zara is one of the six brands of the Spanish Inditex Group owned by Amancio Ortega. It was first opened in 1975 in La Coruna, Galicia, Spain. From the beginning, Zara was positioned as a inject selling medium quality organise clothing at affordable prices. Ortegas keen involution in Information Technology (IT) brought him in to contact with Jose maria Castellano who had a doctorate in Business economics and eng bar offer in IT. Under Ortega and Castellano, Inditex spread nationally and the world-wide followers began in 1988, they opened the first foreign store in Portugal. The international expansion was done, as company owned, conjunction ventures or franchises dep finising on the country. They preferred franchises in countries that were small, risky and culturally different. They use joint ventures in larger more measurable markets with barriers to strike entry and owned stores in amply profile, high harvest-home and low risk countries. Zara was the largest and most internationalized of Inditexs chain. By the end of year 2001, Zara operated 507 stores around the world with massive sales of 2477 jillion Euros. Zara had queer supply chain management practices that enabled it to gain a rivalrous advantage over other fashion retailers in the industry.

Zaras designers continuously tracked customer preferences and placed orders with congenital and immaterial suppliers. The production was done in small batches and with perpendicular consolidation into manufacturing. For the most metre sensitive items the response time was exceedingly fast 4-5 weeks for new products and 2 weeks for modifications, whi ch enabled the firm to rapidly do to chang! ing fashions. Zara had also invested in installing on the loss In Time systems in there vertically combine manufacturing plants to save on inventory costs. Zara has central distribution midst from where the products were shipped directly to the stores twice a week again resulting in low inventory costs. Also, vertical integration helped reduce the bullwhip effect...If you infallible to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay