THE IMPORTANCE OF TYPE, TECHNOLOGY AND TIME (COLLECTIVELY, THE T3) FOR THE WORKSHOP CASE ASSIGNMENT

Assignment Requirements

 

Select your Workshop case assignment, and using your research and analysis of that case proceed to critically examine the importance of type, technology and time (collectively, the T3) to strategic decision making in the company identified in your case.

attached the workshop presentation & Executive Memo

its an essay answer for an exam

Zara is a Spanish clothing and accessories retailer founded in 1975 by Amancio Ortega and Rosalía Mera; it is the flagship chain store of the Inditex group with head quarters in Coruna, in Spain. Apart from Zara which contributes 64.8% of the annual revenue (€16 billion) of the Inditex Group, the group also owns other famous clothing brands such as Massimo Dutti, Pull & Bear, Bershka, Stradivarius, Oysho and Uterque.

Zara operates in 86 countries with 120,314 employees and currently carrying 1286 retail outlets worldwide solely owned and operated by the company. Competition for Zara includes the big players such as H&M from Sweden, GAP from US and United colors of Benetton from Italy. Although the closest competitor being H&M because of the product specification, target market and annual revenues.

Zara gains a competitive edge as its success is a vertically integrated business model spanning over Design, Just-in-time production, Supply Chain, Marketing and sales all backed up with a good IT infrastructure. Based on its effective business model, Zara focuses on timely demand supply of its products to the consumers with an end to end lead time of two weeks from concept, design, production, logistics to the final product availability on the shelves of the retail outlets.

Zara focuses on an efficient feedback system to supports its production and demand supply using IT tools like PDA and POS, the designers and the production facility gets instant feedbacks as which product is most in demand and also on the less demanded product. Working on a continuous feedback model with efficient supply chain process, Zara manages to attract consumer to visit the outlet more frequently, ultimately increasing sales. Having a competitive advantage because of its unique business model, Zara invests almost negligible amount i.e. 0.3% of its revenue as marketing expense and believes more on opening stores and utilizing only the glass wall of the retail outlet for marketing purposes.

Zara along with enjoying all the advantages from its business model faces the hind sides such as high operating and fixed cost, maximum efficiency required leading to employee’s demonization, holdup due to legal limitation on owning store in some countries.

Analyzing Zara’s business, it is recommended that the company should:

v  Keep the focus on geographical expansion especially on Asian & African markets.

v  Along with expanding aggressively, Zara should also consolidate existing market

v  Introduce e-Retail/ Mobile App. System in existing markets & strengthen IT system

v  Focus on Marketing & Advertising to create brand awareness in new markets.

v  Should further focus on Employee training and motivation.

v  Increase focus on Men & Kids wear.

v  Collaborate with Star/Famous designer.

v  Explore opportunity to reduce production cost e.g. near market manufacturing.

v  Use local workshops for finishing product, low cost and quick turnaround.

 

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