Zara EssayThere are several factors that made Zara a successful venture. Some of them are listed below:The designers of the company used to keep the track of customer’s preference and place the order accordingly to the internal and external suppliers.The products were shipped directly to the well-located, attractive stores twice in a week which eliminated the need of having warehouses and also kept the inventory low.
The vertical integration of manufacturing the most time sensitive products Zara was able to reduce the “Bullwhip effect”.In contrast to the other traditional industries Zara took much less time for the design and manufacturing stage.The short time cycle helped in reducing working capital intensity and facilitating manufacture of new merchandise.They different design team for all the product lines- kids, men and women, all of them worked on aspects like continuing in season development, expansion of in demand products etc.
Zara launched almost 11,000 new items per year as compared to its competitors H&M and GAP which only managed 2,000 to 4,000.The company used PDA (personal digital assistance) in stores, which ensured quick information flow within the company and created value for customers.Zara also put a lot of emphasis on training the people about the products and the sales executives were given one week training before starting the work.
Because of the higher turn-over ratio the customers were satisfied as the products were not repetitive.They hired the Spanish and Portuguese people to take the advantage of the local geographical conditions.Zara’s Operation- the Inditex offices had headquarters at the country level which helped in supervising and coordinating the operations of the various Inditex brands. Zara’s headquarter in Spain consists of three spacious halls of each of these centers. The designers work together along with the marketing team and planners of procurement and manufacturing team. The designers while working with other teams quickly check the initial drafts and then discuss some of the new styles. Therefore, the prototypes were examined on site. This is the main reason why the design team of Zara played an important role for the production of 11,000 products in a year with very low turn-over ratio. Each brand from Inditex Group has his own autonomy. They could quickly react to market requirements and act in
Rolande Páez Dios Pérez, A.F.A.D.‡
ZARA is a brand which has developed a remarkable high-quality product with a remarkable range: 3D printed models like the world’s most famous and most valuable. It is an innovative brand, built on innovation and on high-quality products. This is why each company contributes to its portfolio. Besides Zara, there are several others, like FĂ©dĂ©ric and Párez, a small collection of different brands, many of which are based in Spain. They are in various phases of their development.
The first step in the development of the brand is to bring on a team of professionals, including the experts in the field of technology, finance, production, business management, and marketing.
This team is composed of a large number of experts and they work on a specific basis. They are assigned a specific role of the team. They are asked to do the tasks for the company, such as building the new products in a specific way. They are appointed because, like the designers and product managers of Zara, they are responsible for the customer’s interests.
The business people who decide on the future of the brand belong to a set of directors whom Zara has appointed to run the company. In order to achieve this task, the directors are nominated at random, who will appoint a team with whom the company plans to cooperate in the development of a brand. The directors of the companies are paid each monthly wage for the years they work from January through November 1999.
Under the supervision of the directors, the brand grows and the product is developed. The product is sold in a certain place and when its quality falls in light of various market conditions, the company must pay compensation to the customers. The owners have the right to buy the product at whatever price they can.
Product quality depends in part on the specific type of product. For instance, people who have some type of mechanical problem, like a faulty air compressor or a problem with the heating or cooling system of a household, could buy the same product as their own. They could be required to carry out the business to their own satisfaction without any kind of supervision.
The next phase is to develop and distribute the products to some geographical locations of the United States. In this phase, the business people are invited and selected by the managers and product managers of Zara.
At this stage, the directors can only select one of three suppliers: one is sold in Spain and the other in the United States. In this way, it is necessary to have a team of experts and consultants in order to ensure a good mix of skills and the right level of expertise.
In addition to the main decision of the directors, the marketing team, business managers and the product managers of the brand, it is decided for each company to conduct research and research in order to develop a product or an idea that has an appeal to the consumers in different countries at different time in the history of the company. On the research and technology side, the managers are responsible for the development of products with a unique use case. The manager works under the supervision of the salesperson who oversees the product distribution and marketing. The salesperson can decide to make the products available to all users in different countries for the first time. Also, sales and marketing experts are responsible for the development of a new product. These people are responsible for developing the product and deciding when to start the product distribution and marketing.
It is also decided on which product to buy as the cost of the products are based on the customer’s needs. The customer cannot choose one product that can be sold at their prices. A consumer can choose another product only if he wants to get used to it.
By developing a new system, they will make the product the best in the market and are able to get the consumer addicted to the product.