1. By: Ezra Eusebio

2.  For the young, fashion-conscious city dwellers
 Taste in clothes changed rapidly—hard to predict and influence
 High end couture styles for lower prices
 Sophisticated interior design-updated every 5 years
THE ZARA EXPERIENCE

3. Fashion Life Cycle

4.  The idea of Zara was created by Amancio Ortega.
 Partnered with Jose Catellano Rios, Inditex CEO
 Inditex-Multinational clothing retailer and manufacturer
 The first store opened in 1975
 Headquarters are in La Coruna, Spain
 Presently in over 73 countries
ABOUT ZARA

5.  “Link customer demand to
the manufacturing, and link
manufacturing to
distribution. That is the
idea we still live by” –Jose
Maria Castellano Rios,
Inditex CEO
 Different from average
retailers
 Focused on turning around
delivery time within 3
weeks
 Producing clothes worn by
celebrities with quick
turnaround
THE UNIQUE IDEA

6. Product Development

7.  Product Design Team, on going development
 Commercial Team-Allocation
 Product Manager Team-Research
 Store Managers-Selection
DYNAMIC COMPANY

8. Division of Labor Chart

9. MARKETING

10.  Ordering-Store managers order based on needs from hand-held devices
 Handheld device shows, photos, available garments etc
 Fulfillment-allocated by commercial team, delivered to stores right
away
 DC to store right away
 Design and Manufacturing
 Difference-regularly buy for two seasons but continue to develop more in
between
 Operate with short lead time.
 Own facilities that are quick to produce new garments and textile.
OPERATIONS:3 CYCLICAL
PROCESSES

11.  Salgado and Castellano focused on what
new systems were needed if any.
 No justification of IT efforts and no
cost/benefit analysis
 Wrote applications themselves and made
own accounting software
 The IT department had 50 people from
local universities and divided in 3 groups:
1. Store solutions
2. Logistics support
3. Administrative systems:
 Staff retention wasn’t an issue. Only one
person has left in 10 years
INFORMATION TECHNOLOGY

12.  Inventory was used to simply make allocating decisions. Having 100% control
on inventory
 The applications just presented managers with quantities and due dates.
 Most of the sophisticated technologies were put into equipment like cutting
clothes and patterns
 Hand held devices were known as PDA’s (Personal digital Assistants. This
was because faxing order forms back and forth was too complicated.
 PDA’s are constantly upgraded
INFORMATION TECHNOLOGY
CONT.

13.  Salgado wants to change the system. The Sanchez doesn’t
 DOS (Disk Operating System)
-Stopped being supported by Microsoft in 2003.
-But it was easy to maintain over time due to the POS application
that ran on top of it
 The system for new stores now is simple:
-There’s two floppies with all the applications needed
-If something happens and software reinstallation was created.
Daily sales were copied onto floppy disks. POS terminals and PDA’s
couldn’t share information.
THE CASE

14.  Would upgrading to a modern operating system put a risk and robust the
infrastructure?
 The hardware vendor said they weren’t planning on changes its machines so
that it won’t run on DOS
 Should Zara updated to windows UNIX or Linux?
 Should they build new capabilities into the software?,
 Updated apps could have larger screens and key boards. They can go wireless.
Stores can do inventory transfers.
 Update floppy disks?
CASE CONTINUED

15.  Adaption to change needs smooth transition
 Wireless-easier on costs
 Cross information between PDA and POS
 Switch from floppies, information can be linked together
 IT Training, store training
 Advantages
-More capabilities, better capabilities, larger screens, execution of returns, data,
cost efficient, no floppy disk, sales available via internet, inventory availability,
avoid phone calls
ANALYSIS

16.  Keeping it the same
 Convenient, safe, and successful
 Disadvantages: Newer and better capabilities limited, adaptability to change,
possible expansion
ANALYSIS

17. 1. Describe the Zara Customer?
a. Fashion-conscious city
dwellers
b. Missy
c. Conservative
d. All of the Above
2. Where is Zara’s corporate
headquarters?
a. New York
b. Spain
c. Italy
d. France
QUESTIONS
3. Zara’s Marketing Idea consists of
which of the following?
a. Annual Sales
b. New Store Openings
c. No online store
d. All of the above

18. Answers:
1.A
2.B
3.D
CONCLUSION