Case Study for Zara

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[#1]: You’ve got some of the key points. Others include: 1) they accurately understand what customers want, and are able to deliver it quickly to their stores; 2) vertical integration, i.e., maintaining centralized control over its value chain and limiting outsourcing, which enables the coordination and control required to be so responsive [this distinguishes them from Gap and H&M); and, 3) they produce designs in limited quantities, so customers learn to buy now (at full price) rather than risk missing the window of availability.

[#2]: “The use of billboards that integrated stores from across the world helped the company pass its performance elsewhere. The technology was used to link premises from various parts of the world where it had a branch.”—I’m sorry, I don’t understand what this means. Zara does very little advertising, so billboards are not relevant here. No other technology is mentioned in your answer. You can re-submit this answer by email by 11:59 PM December 6 for additional credit.

[#3] “Statistics showed that the company’s net income in 2018 was approximately $3.89 billion compared to Gap’s $1.26 billion (Ivanov, Tsipoulanidis & Schönberger, 2019).” This is a good start. This data comes from our text, not Ivanov et al (which is a credible source for #1 and #2, but less so for #3). The instructions said, “for financial data please ensure you use the latest time periods that are publicly reported,” which would be 2019 (full year) and 2020 (first two quarters). You can re-submit this answer by email by 11:59 PM December 6 for additional credit.

“Lecture notes. (n.d.)” is not a credible source; it looks like a paper mill. Feel free to take a risk and use it as a study aid, but never cite it in a course or in the workplace.

On the other hand, Ivanov et al is a very credible source—Good APA citation! But there are no relevant in-text citations of it in your submission.

 

 

 

Read chapter 3, “Zara: Fast Fashion from Savvy Systems,” in our text.
Answer the following questions in your own words. Clearly label each answer 1-3:
Describe Zara’s strategy/business model, focusing on 3-4 elements that differentiate Zara from competitors such as Gap and H&M in the retail fashion industry
Describe specific ways Zara uses information technology to enable the strategy/business model elements you identified above. Remember to consider not only the hardware and software used by Zara, but the information that is produced and how that information enables Zara’s decision making throughout its value chain (e.g., what products to offer, how much to manufacture, etc.)
Do you think Zara’s strategy/business model is succeeding? How do you know? Provide credible support for your position (e.g., financial data, operating metrics, industry analyst opinions). Use APA style to cite your sources. Note that the fiscal year of Inditex (Zara’s parent) ends January 31, so for financial data please ensure you use the latest time periods that are publicly reported. Hint: For financial data, look at year-over-year changes in income statement and balance sheet results over the course of three to five years.

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