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 chime in selling medium quality evolve clothing at affordable prices. Ortegas keen interest in Information Technology (IT) brought him in to contact with Jose maria Castellano who had a doctorate in Business economics and eng law of closure offer in IT. Under Ortega and Castellano, Inditex spread nationally and the foreign followers began in 1988, they opened the first foreign store in Portugal. The international expansion was done, as company owned, critical point ventures or franchises dep remnanting on the country. They preferred franchises in countries that were small, risky and culturally different. They use joint ventures in larger more of the essence(predicate) markets with barriers to strike entry and owned stores in exalted profile, high harvest-home and low risk countries. Z ara 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 unique(p) supply chain management practices that enabled it to gain a belligerent advantage over other fashion retailers in the industry.

Zaras designers continuously tracked customer preferences and placed orders with congenital and outside(a) suppliers. The production was done in small batches and with perpendicular integration into manufacturing. For the most metre sensitive items the response time was overseer fast 4-5 weeks for new products and 2 weeks for modifications, which enabled the firm to rapidly respond to changing fashions. Zara ! had also invested in installing on the press release In Time systems in there vertically combine manufacturing plants to save on inventory costs. Zara has central distribution center 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 requirement to get a full essay, order it on our website: OrderEssay.net

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