Topic > Zara Case - 1942

IntroductionZara, the largest retailer within the Inditex portfolio, has been able to maintain a competitive advantage over its competitors by offering the latest fashion clothing in its stores throughout Europe, Asia, Middle East East and the Americas. Zara is the result of a clothing factory integrating to leverage the connections between manufacturing and retail. These connections are facilitated by computer technology, and Zara has developed a highly automated production and distribution system to serve its stores. The information systems within Zara stores are easy to use and stable, but there is much debate about whether or not to update them to take advantage of new technologies that could better support the company's business strategy. Strengths and opportunities1. Strategy: Speed ​​& Style Zara's strategy is to provide cutting-edge fashion items to its customers who are looking for the latest trends. To achieve this, all of Zara's operations are built around the tenants of speed and decentralized decision-making. All of Zara's divisions work to reduce the time it takes to bring products from the design table to the store to ensure customers find what they are looking for. By quickly providing new styles to stores, Zara is able to respond quickly to changes in clothing trends and the market. This allows the company to spend very little on advertising and still maximize revenue by constantly introducing new styles. This rapid turnover of merchandise encourages customers to visit stores frequently because they know there will be new items available, and to immediately purchase items they like because they know the offerings will be different the next time they visit... middle of paper. ....do not use the advantages of current systems and incorporate additional features that could improve Zara's operations. Case Updates Zara's strategic and successful use of information technology in its production and distribution system was recognized in 2006 when the company received the Wharton Infosys Business Transformation Award recognizing excellence and innovation in information technology. Inditex received the Enterprise Transformation Award for having "redefined the business model for the fashion industry by reducing the time it takes to bring merchandise from the design phase to the in-store delivery phase." Zara has also expanded its product range to include homewares such as bed linen and towels, tableware, rugs and other home accessories which are available to purchase across Europe from its website, www.zarahome. com, and are shipped directly to customers..