Case Study on Zara: Analysis of Business Aspects and Strategies

Running head: CASE STUDY ON ZARA
CASE STUDY ON ZARA
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1CASE STUDY ON ZARA
Executive Summary
Zara is a Spanish clothing and accessories retailer, which is based in Arteixo. It was found by
Rosalia Mera and Amancio Ortega in 1975. The brand is a flagship store of Inditex group.
The Inditex group is one of the largest groups in the world with other fashion brand names
under its umbrella such as Pull & Bear, Bershka, Zara Home, Zara Kids and Lefties. The
company changes its designs in every two weeks, which is the fastest when, compared to
other brands. There are around 1671 stores of Zara all around the world. It turns around 2000
designs annually. The report throws light on the various aspects of the case study on Zara.
Zara is a flagship brand of the company Inditex. The company is famous for its fashionable
yet cheap merchandise. In the business world, the inventory management and supply chain
system of Zara is praised. The given report answers five questions relating to the various
aspects of the given case study. The first question concentrates on the Retailing aspect of the
case study provided. It is followed by important topic pertaining to its Design aspect. The
third part of the assignment is based on the Production and Sourcing aspect. The fourth aspect
is based on the Distribution aspect and the last part concentrates on Zara online and the
Future of Zara. References of academic papers used during the assignment have been
provided.

2CASE STUDY ON ZARA
Table of Contents
Introduction................................................................................................................................4
Answer to Question 1.................................................................................................................4
Core competencies of Zara.....................................................................................................4
Operational Management issues associated with Zara...........................................................5
Strategy to success.................................................................................................................5
Answer to Question 2:................................................................................................................6
Design to Delivery problems of other firms..........................................................................6
Application of Forecasting and planning methods to overcome issues of the other firms....7
Operations resource based decisions define Zara’s product development strategy...............8
Answer to Question 3.................................................................................................................8
Performance objectives influencing Zara’s ‘should we do or should we buy’ strategy........8
Zara`s capacity strategy..........................................................................................................9
Quality Management Strategy................................................................................................9
Answer to Question 4...............................................................................................................10
Speed-an overriding concern for Zara Logistics..................................................................10
Way in which the operations resources of Zara can be structured to meet its market
requirements.........................................................................................................................11
Supply chain risk issues isntified with Zara’s distribution strategy.....................................11
Answer to Question 5...............................................................................................................12
Evaluating business operations decision making, policies and strategies used by Zara and
compare with other firms.....................................................................................................12

3CASE STUDY ON ZARA
Comparison with other brands.............................................................................................13
Factors influencing Zara`s process system..........................................................................14
Conclusion................................................................................................................................15
References................................................................................................................................16