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operation management zara
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| Words: 3717 | Submitted: 20-Dec-2012
97.5% | Number of pages: 17 | Filetype: Word .doc
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Descriptionzara's supply chain management
ZARAs operational management
Table of contents:
ZARAs supply chain management
Information technology (cost cutting)
Supply chain performance measure
Suggestions for future success
Globalization nowadays opened new areas of chances for organizations to reach and explore new markets. In our modern world, supply chain management takes important place in the success off the firms whose aim is to spread the production and enter new markets. This paper examines one of the most brilliant companies when speaking about supply chain management. ZARA is certainly in the list of the most significant fashion providers in the world. This paper discusses the supply chain management including its fundamentals and mechanisms. The variety of phases of ZARAs supply chain and their contributions to the overall efficiency and effectively of ZARAs business model are discussed. Furthermore, this paper discusses the special metrics that the organization uses to maintain the success of the performance of supply chain management and operations management. (Hayes,2011) Moreover, various operations management framework will be introduced. ZARA was the choice of the research team, because in the industry of retail clothing it is known for its unique operations management. Furthermore, as the researchers, will try to justify, the statement that operations management in ZARA is its key for success (Stevenson, 2012; Dutta, 2002)
Inditex is a leading fashion store chain that was found by the Spanish tycoon Amancio Ortega Gaona. Being an assistant in an apparel shop, in 1963 A. Gaona run his own retail fashion business. After the cancelling of a huge retail order by one of the customers, Gaona decided to sell fashion items by the means of creating small outlet in his factory. In 1979 was found Inditex, the holding organization, where ZARA turn out to be the flagship brand. By the year 1984, ZARA stores were presented in main Spanish cities, in 1988 the organization extended abroad with the store in Portugal. In 1990, ZARAs presence was found in 82 Spanish cities and in 3 cities outside Spanish boarders. In the end of 2011 the Inditex data dictates that ZARA operates in 82 markets and has 1830 stores (Inditex official website, 2012; Zara official website, 2012).
Considering ZARAs success, it should be mentioned that the company has an ability to reveal current fashion needs and respond on time. It takes two weeks for the company to mature a new fashion item from the designers idea and deliver it to stores, while it takes other brands half a year. Yearly ZARAs production issues about 10000 new designed products. ZARAs marketing spend only a few on advertisement, but invests a lot to the stores themselves, the company ...
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