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    Zara Case Sudy Solution

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    rahul80795
    Zara's business model focuses on responding quickly to changing fashion trends, opening stores in prime locations, and producing popular but less durable clothes. It differs from competitors by giving store managers autonomy over stock and selling freedom from extensive advertising. Zara needs store order information and sales data to manage its supply chain. It uses IT primarily for distribution centers but stores still use basic systems. Upgrading POS systems would integrate store information to improve forecasting, test new designs, enhance communication, and position Zara competitively against other retailers upgrading their IT.

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    Zara Case Sudy Solution

    Uploaded by

    rahul80795
    177 views3 pages
    Zara's business model focuses on responding quickly to changing fashion trends, opening stores in prime locations, and producing popular but less durable clothes. It differs from competitors by giving store managers autonomy over stock and selling freedom from extensive advertising. Zara needs store order information and sales data to manage its supply chain. It uses IT primarily for distribution centers but stores still use basic systems. Upgrading POS systems would integrate store information to improve forecasting, test new designs, enhance communication, and position Zara competitively against other retailers upgrading their IT.

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    case study solution for zara case study

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    Zara's business model focuses on responding quickly to changing fashion trends, opening stores in prime locations, and producing popular but less durable clothes. It differs from competitors by giving store managers autonomy over stock and selling freedom from extensive advertising. Zara needs store order information and sales data to manage its supply chain. It uses IT primarily for distribution centers but stores still use basic systems. Upgrading POS systems would integrate store information to improve forecasting, test new designs, enhance communication, and position Zara competitively against other retailers upgrading their IT.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    177 views3 pages

    Zara Case Sudy Solution

    Uploaded by

    rahul80795
    Zara's business model focuses on responding quickly to changing fashion trends, opening stores in prime locations, and producing popular but less durable clothes. It differs from competitors by giving store managers autonomy over stock and selling freedom from extensive advertising. Zara needs store order information and sales data to manage its supply chain. It uses IT primarily for distribution centers but stores still use basic systems. Upgrading POS systems would integrate store information to improve forecasting, test new designs, enhance communication, and position Zara competitively against other retailers upgrading their IT.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    CASE STUDY - ZARA

    1.)

    Zaras business model? How is it different?

    Zaras business model concentrated on a few points;


    Responding according to the customers demand and
    quickly adapt to the customers changing tastes and
    preferences.
    Always tries to open a store in citys prime location
    Concentrates on catching the fashion at that point of time
    and by producing clothes which are not so durable but are
    popular, in fashion and attracts a lot of demand.
    Zara is different from its competitors in the folowing
    respect;
    It allows greater freedom and resonsibilty to its store
    managers, as they decided what would the stock and sell
    in their stores.
    Zara does not advertise much,its marketing expenditures
    are way less than its competitors,rather it invests heavily
    on its stores.
    Decided not to sell clothes over the internet and wants to
    avoid the risk of returns.

    2.)
    Information zara needs to operate. Differntiate zaras
    use of IT?
    Following are the information zara requires to operate
    this model;
    Zara needs a purchase order from the stores managers
    known as the order in which they list out heir
    requirements.

    Aggregated order and total supply soon after the order


    deadline, also the level at the SKU so as to make decisions
    about the quantity to be supplied to each store.
    Previous performance and selling records of stores.

    Zaras differntiated use of IT;


    Zaras approach was consistent , it had no formal
    process or officers in place. There were neither any
    justifications nor any cost-benifit analysis conducted.
    The softwares and application which were needed were
    largely developed imternally by hiring people.
    All the stores transmitted sales at the end of the day for
    all SKUs using a modem connected to stores POS to
    mainting theoretical inventory.
    Factories just calculated how to position the cloth to
    reduce scrap rather than generating optimal plans for
    production.
    The main user of IT are the distribution centers as they
    manage all the conveyor belts as well as the SKUs.
    The stores however still uses DOS as to minimize
    complexities and IT support. Stores also has a PDA as
    fax machines are more time consuming. But still no POS
    or PDA are regularly connected to the head quarters.

    3.)

    Advice on issue of upgrading zaras POS system.

    I would advice zara to upgrade its POS system for the


    following reasons;
    All the stores would be connected with each other and
    information will be integrated hence the HQ will have a
    direct acess to all the information which will allow it
    predict the demand and sales thereby improving its
    supply chain, which is one of the strenghts of Zara

    They will be able to test the performance of the new


    designs and collection directly and will not have to depend
    upon the opinion and suggestions given by store
    managers
    There will be better and more effective communication
    between the stores and the head quarter resulting in
    effective business, and also eliminating dependence on
    telephone.
    Zara will be able to comnpete with its competitors also on
    the IT basis in which it is lagging behind which might
    improve their capabilities and will give them an upper
    hand against the competitors
    Zara now has the fear that the vendor might not supply
    them anymore, but once the upgrade to the latest
    softwares they will not only eliminate this hurdle but also
    will be in a better position to negotiate with the IT
    companies now and also in the future as there will be
    many vendors available.

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