Zara It Analysis Essay

1801 Words May 2nd, 2013 8 Pages
Table of Contents
Table of Contents 1
Brief Summary of Zara 2
How would you advise Salgado to proceed on the issue of upgrading Zara’s POS systems? 3 - Should the company upgrade the POS terminals to modern operating system? 3 - Should the company build in-store networks? 4 - Should the company give employees the ability to look up inventory balances for items in their own stores? 4 - Should the company give employees the ability to look up inventory balances for items in their other stores? 4
What is the Zara “business model”? How is it different from the business model of other large clothing retailers? What weaknesses, if any, do you see within this business model? Is it scalable? 4
In your opinion, what are the most
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Store managers will also be able to utilise the system to see inventory balances and make decisions on ordering.

* Should the company give employees the ability to look up inventory balances for items in their other stores?
Yes, not only will it allow inter-store transfers, but also provide better customer services, and to let the customers know from which store the items will be available. It not only retains the sales within Zara, but also the customers in the long term. Happy customers will always return.

What is the Zara “business model”? How is it different from the business model of other large clothing retailers? What weaknesses, if any, do you see within this business model? Is it scalable?

Zara operated on a Vertical Operations Business Model, controlling every level of value chain: factories, workshops, processing, and distributions centre. It carried out virtually no advertising, relying heavily on store images. Zara was very brand centric. Its website only as showed a few garments at any time. Also it did not have internet shopping facilities as current DC did not cater for shipping small orders and handling returns of garments. (Mcaffe, Dessain, Sjoman, 2007).

In addition to its own fashion launch twice a year, Zara constantly created new garments and the quantities needed were practically driven by customer demand. This approach would not be achievable without the support of back end manufacturing process and

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