Zara case study

1. GROUP 3
TEAM | SEHNAZ | RAHUL | DHRUV | MEGHA
*KINDLY REFER TO THE NOTES ON CERTAIN SLIDES FOR
EXPLANATION.

2. SNAPSHOTS
1. What is fashion
2. Analysis of ZARA
3. Blue ocean strategy
4. What should ZARA do regarding its IT system?
5. Learning from ZARA

3. WHEN WE TALK ABOUT
FASHION.
WHAT IS THE FIRST
THING THAT COMES TO
YOUR MIND?

5. WHAT DO THESE MODELS
HAVE IN
COMMON?

6. 36-24-36

7. EVEN YOUR RIVALS KNOW THAT

10. ZARA CUTTING EDGE

11. PORTER FIVE FORCES

12. TIME FOR CHANGE?
High competitions
Price wars = low profit margin
Exploiting existing demand
OVERSATURED MARKET
= RED OCEAN

13. HOW DO WE CROSSOVER TO
THE BLUE
OCEAN?

14. ZARA+

15. FAT IS THE ‘NEW THIN’

16. WHY?

18. THE ISSUES
1700 stores globally but only 45 in USA
REASONS:
USA obesity percentage is higher than European
counterparts
ZARA does not produce clothes for larger size
people.
http://abcnews.go.com/GMA/video/zara-fashion-linesizes-coming-time-17726650

19. THE WORLD IS GETTING BIGGER

20. SHOULD
ZARA
MODERNIZE
HER
IT SYSTEM?

21. WHAT IS ZARA USP?
Fast supply chain
Launching new design within 3 weeks
First to deliver the latest fashion
Earn the first producer advantage

22. WHY CHANGE THE SYSTEM
THAT WORKS?
• Rapid globalization of stores
• Current system becoming obsolete
• Delicate system with limited workforce to
repair it
• Keep up with current technology so
ZARA doesn’t get
left behind!

23. THE BEST WAY TO IMPLEMENT IT?
1. Test-drive new system in the new store first
2. Identify potential problems and rectify them
3. In the mean time, the company will have two software
running for a period of time
4. Operating cost will be higher but our supply chain won’t
be affected
5. So this way ZARA doesn’t lose her USP
6. Once the system is running smoothly, we will start
introducing these system in the old stores

24. LEARNING
FROM

25. THEY UNDERSTAND WHAT IS THE
MOST IMPORTANT ASPECT OF
THE INDUSTRY.
RAPIDLY-CHANGING TASTE OF
THE CONSUMERS

26. THANK
YOU