1. Company overview and description of challenges, Zara faced not long time ago.
Zara is considered to be one of the pioneers of fast fashion industry and has been dominating the fashion industry across the world for almost two decades. Zara’s concept, capabilities, and value drivers, as demonstrated through their business model, have proven to be extremely successful. Their focus on the pulse of fashion have made them one of the most successful clothing retails in the world
Unlike other companies have to spend large amount of money to gain advantages from Information Technology and then pay more money to maintain it, Inditex invests very little on Information System which is referred to simpler Technologies. The key decision to make Zara successful was made when the company decided to use modern but simpler technologies in order to get advantage on the …show more content…
Like fashion shows in Paris, Zara uses this fashion to draw the designs, transmit these designs to Spain, and finalize them within 15 days; whereas, this process takes about six weeks for other competitors. Implementation of Information Technology gives Zara a huge advantage on the others. Many companies in the fashion industry are based on a demand-driven and network based supply chain where data-flow and effectiveness delivery of products are crucial to success. This success in the fashion industry cannot be achieved without a significant investment in Information technology. Information technology overcomes communication barriers and helps to interconnect all the entities in the supply chain by sharing information. These facts demonstrate the important role that a proper Information technology investment has in the success of an organization in the fashion