Zara Case Analysis

Zara is a retail chain of Inditexthat, focusing on high fashion at affordable prices. In the last 12 months Inditex 's stock price rose 50% despite the bearish market. An increase of 50% is due to investor's expectation for Inditex's growth. The growth of Inditex can lead to decisions in the creation of vertically integrated intensive processes. The concentration of vertical integration in Europe gives it a competitive advantage; however, if I decide that it grows to other markets, I think it will fail.

This case paper will conduct a commercial analysis of Zara, the most profitable and famous fast-fashion brand of Inditex Group, the world's largest fashion distributor. In this analysis, we evaluate Zara using the Porter model, check supply chain management, and define the current IT assignment. Next, this article describes the cost and benefits of upgrading to a new operating system. In this article, we will consider whether Zara needs to upgrade the POS terminal after considering all of the above factors.

Given all possible factors, this case analysis seems to be suitable for considering that Zara will upgrade old DOS systems to OS systems. As a fashionable fashion industry retailer, Zara's management philosophy of linking customer needs and manufacturing, linking manufacturing and distribution is very effective, making Zara the main chain of the Inditex group. Zara's general strategy is to differentiate and save costs. Zara has a strong demand for the speed of business processes and close linkage in supply chain management, so the demand for IT is high. The evaluation of the solution shows that Zara will upgrade the system with a predictable advantage over the disadvantage. Through careful consideration and backup restoration plan, Bruno Sanchez should not be too conservative against the idea of ​​upgrading the system.

Zara has increased the fashion trend smarter and has built up a supply chain that responds quickly to trends. This made Zara successful in many countries like Europe and Asia. Unique supply chain management gave Zara a competitive advantage, which inspired me in the Zara case study. Amancio Ortega Gaona established the Inditex textile maker in 1963. It started in several manufacturing centers and sold products to European countries during the next decade from 1963 to 1974. The first Zara store opened in the center of Acora (Spain) in 1975. From 1976 to 1984, Zara launched its own business, occupying the Spanish market while fascinating the public. In December 1988, Zara left Spain and opened its first international store in Porto (Portugal). In 1989, Zara took the next step of internalization. We opened the first store in New York (USA) and opened the second store in the global market.