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Case Study Zara

Inditex, the parent company of Zara, enhances its fast-fashion model by stocking stores with new items twice a week and utilizing technology for real-time sales monitoring and inventory management. The company has successfully expanded into smaller cities, leveraging technology to boost online sales and improve customer service through mobile apps. However, this expansion poses challenges such as the need for skilled labor and potential increases in garmenting costs due to distance from manufacturing plants.

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7 views2 pages

Case Study Zara

Inditex, the parent company of Zara, enhances its fast-fashion model by stocking stores with new items twice a week and utilizing technology for real-time sales monitoring and inventory management. The company has successfully expanded into smaller cities, leveraging technology to boost online sales and improve customer service through mobile apps. However, this expansion poses challenges such as the need for skilled labor and potential increases in garmenting costs due to distance from manufacturing plants.

Uploaded by

nataliabg401
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Bryan Murphy

International Marketing
Case Study (Zara)

1. One of the main things Inditex does to enforce the meaning of being truly fast is they

stock their stores with new latest fashion items twice every week. They usually come in

smaller quantities which help sell out faster. They also have a team of sales managers

that sit by computers monitoring the sales all over the world, which helps make needed

changes to flopping products.

2. For the consumer side, the fact that there are warehouses and distribution centers near

the production plant help bring in more trendier clothing to attract consumers. They

have garments at a reduced price, and consumers are able to acquire brands that are

uniform if they are shipped in large volumes and from a central point. For store

managers, they now have hand-held computers that show how garments rank by sale,

so clerks can re-order best-selling items in less than an hour, which previously took

about three hours.

3. The internet is becoming a much more popular channel in terms of sales and stock

management. As previously mentioned in the last question, the hand-held computers

for managers provides a much more efficient boost to operations. They can see what’s

selling better than what and have the clerks re-order items in less than an hour. It also

provides an easier way to have a stronger internal control system for inventory and

production. Inditex was slow in producing sales online because of the complexity

involved in online management and sale of collections that are fast-changing.


4. Inditex has provided a solid market and niche where they provide to consumers in much

smaller cities and towns, not just the big major cities. Another thing Inditex utilized was

the opportunity gap in information technology, where they were able to boost online

sales across the world. Strong customer service is another attributing factor to their

success, as they have provided customers an app on the heir phone to see what’s new in

stores. The opening of new stores in smaller towns outside of its own home market in

Spain. Lastly the access to raw materials has provided a way for cities to open up to new

markets and get newer materials at cheaper prices.

5. One of the biggest advantages to a market is how broad you can make that market.

Inditex is able to increase their brand recognition and sales by moving to smaller cities.

It can also lead to a positive increase in the profit margin of the company. A

disadvantage to moving to smaller cities is having to hire more new people to help run

the business that the skills to do their job effectively. Location can also be a

disadvantage, because the smaller cities can be further away from the manufacturing

plant and garmenting costs can rise.

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