Zara

소개글

Operation management 강의 수강 중 제출한 Zara 케이스 스터디 입니다. (영문 4P)
1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results?

2. How specifically do the distinctive features of Zara’s business model affect its operating economics?

3. Can you graph the linkages among Zara’s choices about how to compete, particularly ones connected to its quick-response capability, and the ways in which they create competitive advantage?

목차

1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency? Note that while the electronic version of Exhibit 6 automates some of the comparisons, you will probably want to dig further into them.

2. How specifically do the distinctive features of Zara’s business model affect its operating economics? Specifically, compare Zara with an average retailer with similar posted prices. In order to express all advantages/disadvantages on a common basis, you may find it convenient to assume that on average, retail selling prices are about twice as high as manufacturers’ selling prices

3. Can you graph the linkages among Zara’s choices about how to compete, particularly ones connected to its quick-response capability, and the ways in which they create competitive advantage? What does the exercise suggest about such capabilities as bases for competitive advantage?

본문내용

Zara competes on fashion and price through the quick release of trendy clothing. Zara customers are quite interested in high fashion, but unable to purchase the high-end designs and cuts that provide this high fashion, such as Armani, Gucci, and Moschino. Therefore, one can summarize that Zara’s competitive advantage lie utilizing an efficient global supply chain to capitalize on seasonal consumer demand.
This efficient supply chain provides many benefits, including an ability to accurately measure consumer demand levels without the traditional distortions and/or “bullwhip effects” that sometime occur with traditionally structured logistics. This helps in reducing warehouse clutter and long-term storage that can freeze capital for retail companies. The nibble Zara is able to utilize design and ship goods within four to five weeks, offering completely new designs that consistently beat competitors to the shelves, at a lower price.
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