Module 1 SCMP
25th September 2014
Table of Contents:
• Case Summary
• Case Description
• Goals and Strategy
- Speed and Decision-making
- Marketing, Merchandising, and Advertising
- Information Technology
• Problem Analysis
- Firm-based-value chain model o Model Application
- Implementation Opportunity Analysis
• Evaluation of IS Implementation
- Real Costs Analysis
- Real Benefits
- Real Costs Analysis
- Real Benefits
- Conclusion for Evaluation of IT Implementation
• Conclusion and Recommendations
Zara Case Paper Analysis
In this Case study we will do business analysis of Zara as well as This Case study represent Zara Business Strategy with their current IT infrastructure and possibility to update their current DOS POS and IT infrastructure and also discussing benefit and conscious of New IT infrastructure update to Zara and how it will be beneficiary to the organization .at the end we will concludes by providing some recommendations for updating the current Oprating System and how it will be advantages to Zara.
Zara was founded by Amancio Ortega in 1975. Ortega had started in 1963 with clothing Factories. He believe that retailing and manufacturing needed to be closely linked in the apparel industry, so he opening the first Zara store in La Coruna in 1975
In 1985 Inditex was formed as a holding company of Zara, other retail chains (Massimo Dutti, Bershka, Pull and Bear, Stradivaarius and Oysho) and a network of internally owned Suppliers.
At the beginning of 2003 Inditex has 1,558 stores in 45 countries out of 550 stores are a Zara stores. Zara generates 73.3% sales of Inditex. Zara offers a great choice of new style clothes for Men, Women, and Children at reasonable prices every time. The women clothing account for 60% of Zara’s revenue.
Zara would like to respond very quickly to the demands of target customers who were young fashion conscious. Their tastes in clothing changed readily, were very hard to predict and were also hard to influence. That’s why Zara wanted to be able to produce and deliver such styles while they were still hot rather than relying on the marketing to push clothes it had made some time ago.
Zara also trust the judgment of employees throughout the company, instead of relying on a small set of decision makers. Store Manager at Zara was given much more responsibility than those at other large clothing chains. In addition to dealing with customers, employees, contractors and landlords, Zara store managers decided what garments would be on sale at their stores. They placed order for the items they thought would sell.
Zara did not try to produce “classics” clothes that would always be in style. Company intended it’s clothes to have fairly short life spans, both within stores and in customer’s closets.
Zara prefers developing applications internally for its use, instead of buying the commercial available software. At this time the company relies on an out-of-date operating system; the POS (Point of Sale), for its store terminals and this product doesn’t support networking in the stores. The P-O-S system runs on DOS, which is not supported by Microsoft from long time. As much this system is outdated, it is still easy to maintain and operable In 2003, Zara’s CEO must decide whether to upgrade the retailer’s present system and risk the reliability with the current system, or continue with the old system that will not be compatible for future changes or improvements. The case describes this value, concentrating on its operations and IT infrastructure.
Speed and Decision-making
Zara respond very quickly to the demands of target customers who were young fashion conscious. Their tastes in clothing changed readily, were very hard to predict and were also hard to influence.
Zara wanted to be able to produce and deliver such styles