Zara vs Mark&Spencer Essay

1978 Words Sep 21st, 2009 8 Pages

February 21, 2008

Sommaire I- Introduction 3 II- Analysis 4 III- SWOT Analysis 6 IV- Solutions 7 V- Recommendations 9

I- Introduction

This case study presents two companies, Marks & Spencer and Zara, which are active in the apparel industry, and examines supply chains and the product-process linkages of both companies. Marks & Spencer, originally named Penny Bazaars, was founded by Michael Marks in 1884 in Northern England as a clothing sales company. Ten years after its startup, Thomas Spencer joined Michael Marks and became co-owner of the company. From 1894, the company has continued to work under the name of “Marks & Spencer (M&S).” Influenced by American chain stores, M&S
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s & Spencer |
|Strengths |Weaknesses |
|Built on strong foundation |Inflexible product development |
|Emphasis on using the latest technology |Neglect of customer needs |
|Close cooperation with suppliers and extensive supplier network |Incorrect supply chain choice |
|Quality oriented |Long production process |
|Cost-efficient supply chain model |Over-centralization of the decision process |
|Large product variety (clothes, food, furniture) |Inaccurate forecasts of the season’s fashion hits |
|International outreach |Lack of inventory to replenish store’s stock due to inaccurate |
|Online shopping service |production forecasts |
|Welfare department for the employees: dentists and doctors, a pension |Buildup

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