POS Terminal: The Current POS terminal of ZARA is effective, easy to operate and maintenance cost is low. However, the DOS based POS systems is ancient and not that much powerful to handle its current sales operating load. Jumping into new operating systems, organizational changes and modifications to store employee work habits with this new system is time-consuming and expensive process, thus, gradually upgrade the POS system is suggested. Two way Zara can meet its short and long-term business challenges, which is related to its POS systems. First, Salgado can keep the current POS terminal while adding some additional features that will meet its business strategy, for instance, better inventory management. Second, in a long term ZARA must
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Zara’s fundamental concept was to maintain design, production, and distribution processes that will enable Zara to respond quickly to shifts in consumer demands. Zara’s Business and IS strategies were greatly influenced by porter’s five competitive forces. From design to productions, Industry competitors to threat of substitute products, threat of new entrants, each and everywhere, ZARA applied its IS strategies and gained significant competitive advantage especially in the areas of product development, strategic partnerships and cost of production, advertising and marketing, and information technology infrastructure. Zara did not follow conventional business strategies like its main competitors H&M, GAP and Benetton. Zara wanted to produce and sell recent styles and for short life spans. Most of the apparel retailers outsource all of their productions while Zara manages all its design, warehousing, distribution and logistics functions itself. Zara did not rely persuasiveness on marketing to push clothes instead of presenting newly designed clothes in every couple of weeks in its store. However, for production, inventories and making business decision, Zara mainly trusted on their store managers. Zara believed that decentralized decision-making process helps to make quick decisions. Although, ZARA has a successful business model but it also have some weaknesses, which could limit its scalability and business growth. Fast and foremost, they did not have any online presence, which has deprived it to earn more profit. According to eMarketer ‘’apparel and accessories is the best-performing online retail category, with a compound annual growth rate of 17.2 percent projected from 2012 to 2017”. Zara had no advertising policy, which was a constraint to business development around the world. Zara’s outsourcing policy was also a drawback for its
Zara’s fundamental concept was to maintain design, production, and distribution processes that will enable Zara to respond quickly to shifts in consumer demands. Zara’s Business and IS strategies were greatly influenced by porter’s five competitive forces. From design to productions, Industry competitors to threat of substitute products, threat of new entrants, each and everywhere, ZARA applied its IS strategies and gained significant competitive advantage especially in the areas of product development, strategic partnerships and cost of production, advertising and marketing, and information technology infrastructure. Zara did not follow conventional business strategies like its main competitors H&M, GAP and Benetton. Zara wanted to produce and sell recent styles and for short life spans. Most of the apparel retailers outsource all of their productions while Zara manages all its design, warehousing, distribution and logistics functions itself. Zara did not rely persuasiveness on marketing to push clothes instead of presenting newly designed clothes in every couple of weeks in its store. However, for production, inventories and making business decision, Zara mainly trusted on their store managers. Zara believed that decentralized decision-making process helps to make quick decisions. Although, ZARA has a successful business model but it also have some weaknesses, which could limit its scalability and business growth. Fast and foremost, they did not have any online presence, which has deprived it to earn more profit. According to eMarketer ‘’apparel and accessories is the best-performing online retail category, with a compound annual growth rate of 17.2 percent projected from 2012 to 2017”. Zara had no advertising policy, which was a constraint to business development around the world. Zara’s outsourcing policy was also a drawback for its