Zara Fast Fashion

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Zara is the run by Inditex, which is the largest Spanish corporation and the world’s largest fashion group. Zara was first opened by Amancio Ortego Gaona in 1975 on an upmarket shopping street in La Coruna, and has continued to expand at a very positive growth rate. By the 1970’s, there were half a dozen Zara stores in Galician cities, and by the year of 1990, Zara had opened in various countries internationally such as USA, Paris, and Portugal. Zara is able to successfully sell their brand by promoting fast fashion rather than high fashion; which allows them to quickly adapt to changing fashion styles and market their products more efficiently to their customers. They are able to accomplish this through vertical integrated operations that allow them to make quicker decisions when it comes time to making decisions. They are able to market their products efficiently by tantalizing exclusivity, since they only display posters at stores on their window display it gives way for customers to think that if there’s a limitation to the product, they should buy it rather quickly. Vertical integration plays a successful role in this because Zara is able to meet customer demands more quickly by shortening the time it takes to make decisions. Zara’s success could be given to their information technology tools employed at their production level; from a designer checking for sketches with colleagues to market specialists, all the way to cross-functional teams examining clothing prototypes in the hallways of Inditex building. However, a major problem that Zara faces is they can continue using their existing POS system which runs on DOS, but there exists a higher probability that Microsoft’s DOS supplier will cease to produce and use the softw... ... middle of paper ... ...ompany. With the upgrade of their systems, they can tremendously improve the internal environment of their operations. Tangible benefits of such upgrade would increase in productivity levels, up-to-date reports, optimum inventory levels, and less workforce required per location. Though Zara can continue to utilize their existing software, they should upgrade to the new system because they will be able to reap intangible benefits. Intangible benefits would include improved asset utilization, improved resource control, improved organizational planning, and increased organizations flexibility. This would help Zara better control their inventory, and they could share information between stores in real time more accurately. Real time inventory management will increase the overall service level and help in cross-selling between stores to provide better customer service.

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