Operational Management: H&M, Zara, and Benetton

This report analyzes the operational management strategies of H&M, Zara, and Benetton in the fashion industry. It focuses on their design, manufacturing, distribution, and retail strategies. The report concludes with recommendations for Benetton to improve its global image.

RUNNING HEAD: OPERATIONAL MANAGEMENT 0
Operations Management: H&M, Zara, and Benetton

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Executive Summary
This report is a contextual analysis. The focal point of this report will be on the
production network of the three organizations of a piece of clothing retailers. These quick
changing style pickers give a focused challenge in the market around the world. Every one of
them is a worldwide organization. The structure of the contextual analysis is partitioned into
the four phases of configuration, assembling, conveyance, and selling. The systems of H&M
are not the same as ZARA's and Benetton inventory network procedures.
The last two organizations have the mechanized arrangement of dissemination that
connected together with the assembling and designing plants spread everywhere throughout
the world. ZARA is following the most productive inventory network procedure since
planning technique is the most urgent period of the entire assembling of pieces of clothing
business.

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Table of Contents
Introduction................................................................................................................................3
Design Strategy..........................................................................................................................3
Manufacturing Strategy..............................................................................................................3
Distribution strategy...................................................................................................................4
Retail Strategy............................................................................................................................4
Discussion..................................................................................................................................4
H&M......................................................................................................................................4
Benetton.................................................................................................................................4
Zara........................................................................................................................................5
Recommendation....................................................................................................................5
Conclusion..................................................................................................................................6
Bibliography...............................................................................................................................7

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Introduction
Supply chain management includes the design manufacturing of the product in order
to efficiently satisfy customer’s needs. In today’s era of the competitive world, most of the
fashions traders are tend to globalization that targeting in achieving future growth in
garments industry (Reidy, 2019).
However, most top three quicker fashion dealers (Zara, H&M, and Benetton) have
dissimilar approaches to become successful globally. Benetton garments are of the best
quality and higher process but at the similar time, they are less trendy. Despite various
variances in the target market, thy three manage to deal in same market condition and offer
very trendy products which are quite innovative as well (Martin Roll, 2018).
This report will be an emphasis on the approaches taken by the H&M, Benetton &
Zara, and hoe there approaches differ in terms of design, manufacturing of the supply chain.
Design Strategy
H&M, Zara and Benetton have moved far from the conventional business routine with
relation to offering two "collection" a year and they have decreased the process durations
because of their duration of the supply chain. In H&M's design office, it incorporates design
planners, purchasers and spending controllers and the task is to find out the ideal harmony
between style, quality, and cost (Palmatier, Stern, & El-Ansary, 2016).
The structure in Zara is somewhat not quite the same as H&M, the plan branch of
Zara incorporates fashioners, showcase authorities, and purchaser. This is the motivation
behind why Zara can react to client request quick. Furthermore, Benetton's structure is unique
in relation to H&M and Zara in light of the fact that it plans for their image but also focuses
on researching new material and clothing.
Manufacturing Strategy
H&M, Zara and Benetton have spilled their production system to diminish the risk
and keep stock in minimum quantity. In this way, the companies can react to client request
adaptably and produce what is required by the market. Moreover, Both Zara and Benetton
possessed assembling capacity to make their products and this likewise is the motivation
behind why Zara can make lead times to become the quickest in the business. So the
assembling of H&M is altogether different from Benetton and Zara. Along these lines, what

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is the most vital is that the creation workplaces of H&M should arrange the providers to make
the assembling quick and adaptable.
Distribution strategy
Both Zara and Benetton have exceedingly computerized distribution centers near their
production center. These distribution centers can store, pack and collect individual orders for
their retail network. Likewise, H&M is unique in relation to Benetton and Zara. At H&M,
while the administration of the product is principally controlled internally. In spite of the fact
that their distribution is extraordinary, they can renew stores quick according to trendy
market (Vecchi & Alessandra, 2016).
Retail Strategy
All H&M and Zara stores are possessed and exclusively kept running without anyone
else's input however the distinction between their retail locations are that Zara's pieces of
clothing once in a while remain in the store for longer than about fourteen days. This is the
most remarkable feature for Zara stores. In Benetton stores, the entire scope of Benetton
items would be displayed (Cravens, 2008).
Discussion
H&M
Its vision is to become the price pioneer in the fashion world and to compete this
company eliminate the intermediary and combine the buying volumes. Design of the product
is one of the most focuses of the company. They try to adopt a street trend which is easy to
produce within a 2-3 week (Staff, 2018).
Benetton
This company focuses to control over production and allows its licensee to run the
stores so that they can have their concentration on production and quality. For high
demandable products, they use production services in Europe (Staff, 2018).
Zara
Zara is well known for its time-based strategy. They use the small lot production to
launch a new product within a reasonable time, a new product is tested and if it is good then
the large batch will be demanded. Otherwise, left out product stock will be sold as markdown

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products in other shops. This made the opinion that Zara’s product has to take it up within a
reasonable time while stocks last as there products are unique (Staff, 2018).
(Staff, 2018).
Recommendation
According to the analysis done, Zara and H&M are yet struggling for its image
internationalization. Benetton production network is the most competitive globally.
Benetton's diversifying framework permits the organization can enter the new market without
the high cost as Zara and H&M, likewise, it is useful the vulnerability chance when the
higher physic distance.
Benetton has depended on the franchising model in term of principle commitment
factors: capital distribution network. It is not just permitting Benetton winning recognition
and the consideration of general society yet additionally strengthens its worldwide image and
picture.

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Conclusion
It can be concluded with the above analysis that, all the three successful retailers are
doing well in their stages on behalf of their supply chain management. But Zara & H&M are
not that much success in terms of their supply chain management as compare to Benetton.
Although there are recommendations for the Banneton that will help to get more success and
make its journey long far.
Bibliography

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Cravens. (2008). Strategic Marketing 8E. New York, United States: Tata McGraw-Hill
Education.
Martin Roll. (2018, July). Uniqlo: The Strategy Behind The Global Japanese Fast Fashion
Retail Brand. Retrieved from martinroll.com:
https://martinroll.com/resources/articles/strategy/uniqlo-the-strategy-behind-the-
global-japanese-fast-fashion-retail-brand/
Palmatier, R., Stern, L., & El-Ansary, A. (2016). Marketing Channel Strategy. Abingdon,
United Kingdom: c.
Reidy, S. (2019, February 4). Fashion supply chain: supply chain visibility to streamline it!
Retrieved from arviem.com: https://arviem.com/fashion-supply-chain-needs-supply-
chain-visibility/
Staff, E. (2018). Supply Chain Management Case Study: the Executive’s Guide. Retrieved
from supplychainminded.com: https://supplychainminded.com/supply-chain-
management-case-study-executives-guide/
Vecchi, & Alessandra. (2016). Handbook of Research on Global Fashion Management and
Merchandising. Pennsylvania, United States: IGI Global.