Because manner tendencies are systematically altering. Zara needed to implement a procedure that designs. This thought of implementing perpendicular integrating into its cardinal procedures has created a competitory advantage for Zara.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. It is first necessary to explain what a supply chain management means.
Such an approach, of looking at the entire supply network helps organisations identify their competitive advantages and parts of their processes that contribute the most to the performance objectives that are of the greatest importance Zara essay the customers Slack et al.
It also helps to develop long-term strategies for the company based on the identified advantages. Key stages in their supply chains that I will discuss are product design, manufacturing, distribution and retail.
Their clothes do not have to be of an exceptional quality as the most important factor is to quickly deliver catwalk design to high street customers at an affordable price Slack et al. Benetton clothes are of better quality and higher prices but they are at the same time less fashionable and not as trendy.
Despite these differences in the target markets, all three companies operate in a very similar environment and all offer innovative products with a life cycle that is very short. Therefore, they need a responsive supply chain that will respond with flexibility to the uncertainties of the environment in which the three companies operate Fisher, The later, though, require great capital and leads to high costs.
How do the companies balance these factors? In order to answer this question I will follow the product life cycle as it moves down the supply chain of each company, starting from the design, production of the garment, its distribution and retail.
In the fashion industry design is one of the most important things. Successful design will have to have the right cut, Zara essay right colour and pattern, and be made of the material appropriate to the rest of the design.
No wonder that companies spend so much effort on this stage. Each product line has its own designers, its own buyers and market specialists.
Running three product line designs have its advantages and drawbacks. What also needs to be mentioned regarding design is the volume of the designs produced. Traditional fashion retailing was seasonal, with two collections being launched for the spring and summer period and another for autumn and winter.
Only Benetton may be described as following this pattern. The company introduces two basic collections per year and supplements them with small flash collections that are being put into the stores in the middle of the seasons to attract customers Boddy, Successful designs will be modified and another batch sent to customers while those that did not meet with customer interest will be moved out of stores within two weeks Tiplady, All three companies operate world-wide.
Whereas Benetton up until recently had quite a lot of its designs customised to the needs of specific countries market Slack et al.
Currently however, the company is standardising its range world-wide which will mean major process and product range simplification for the entire supply chain.
The next stage in the garment life cycle is its manufacturing. At this stage the three companies differ the most. Zara tends to use subcontractors in Europe rather than carrying out the work in the Far East, famous for its cheap labour. Zara owns most of the infrastructure needed to produce its clothes and has great control over its suppliers.
Therefore the company is backward integrated. The company does not have any factories of its own but buys everything from around independent suppliers in Europe and Asia www.
But outsourcing does not only mean saving money. It may cause a company a lot of trouble, as the company does not have the same amount of control over a process as it would have if it were kept in-house.
The usual problems associated with outsourcing is maintaining the quality standards, delivering goods on time and being able to respond quickly to any changes in the market. Moreover, the employees in the production offices are drawn from the local population, which means they know the suppliers and the environment in which they operate very well www.
They communicate with suppliers very effectively and as they buy in big amounts, they have managed to maintain a lot of control over their suppliers. Just like Zara, Benetton perform itself the manufacturing operations that require great skills and technology while outsourcing the labour intensive activities Slack et al.
Previously Benetton was famous for using the same network of suppliers who were either former Benetton employees or had a family ties to Benetton Giannakis et al.
The only thing in common with all three companies at the manufacturing stage is their strategy of postponements in terms of placing orders and choosing the colour of the garments.
This strategy helps companies to keep the cost low as late ordering means keeping lower inventories and choosing the colour of the clothing at the very end of production allows greater flexibility in meeting the actual demand of customers.
In terms of distribution, Zara and Benetton use similar strategies. Both companies invested huge capital in building high technology distribution centres to which all produced goods are sent, checked and prepared to be delivered to individual stores Slack et al.
Zara currently owns two such warehouses one in La Coruna the other in Zaragoza, which not only prepares the order for each store but pre-prices and tags each garment and hangs most up on racks Ferdows et al.Essay on Zara 2 Zara is recognised as the one of the world’s largest fashion companies specializing in reagards with women, men and children timberdesignmag.com is considered as the top band and was operated under different multinational distribution group.
Essay about Zara and Fast fashion Introduction and Zara’s Success story Zara Operations management and Operation Strategies Zara’s Marketing Strategies compare to . H&M, Benetton and Zara Essay Sample. The purpose of this essay is to discuss different supply chain management approaches taken by H&M, Benetton and Zara.
Essay about Zara Case Analysis Zara is a retailing chain of Inditexthat specializes in high-fashion at reasonable prices. In the last 12 months, Inditex’s stock price has increased by 50% despite bearish market conditions.
Zara: a Marketing Analysis Case Study Essay. my organization is ZARA.
Based in La Coruna, Spain, Zara is Inditex’s main brand, (Fashion Forward -The Economist, ). For its Zara brand, Inditex manufactures the majority of the garments sells and undertakes all of its own distribution from manufacturing plants to its directly managed retail outlets.
Benetton outsources most of its production and most of its retail outlets are owned and operated by franchisees. Which is a superior system? This site is using .