FreePowerpointTemplatesIntroductionofZARA1StrategicManagement2ZARA'sBusinessModel3SupplyChainManagement4ChallengesfromCompetitor5StrategicRecommendations6Content◆ZARAisasubsidiaryofSpain'sInditexgroup.◆Establishedin1975inSpain.◆Aclothingbrand.◆SpecializedinZARAbrandclothingchainretail1、BrandIntroduction1◆Establishmorethan2000clothingChainstorein56countriesallovertheworldnow.◆EnteredintoHongKongin2004,Shanghaiin2006,Beijingin2007.BrandIntroduction◆CreatethemodeofPreciseFashion.◆“Dellcomputerinfashionindustry“.◆Becomeaflaginthefashionapparelindustry.◆Theintegritybetweentheitsbrandspiritandtheconsumer’sdeepdemand.2、BrandCharacteristics◆ItisalreadyoneofChina'sretailers,whosetradeisthehighestrevenueandprofits.◆It'sprofitisfourtimesthanthatoftheotherdomesticapparelenterprises.◆Chinesemarketisoneofthemostprofitablemarket.ThewholesalesintheChinesemarketisevenmorethanthatoftheUnitedStatesmarket.3、TheSuccessinChineseMarketCorporateStrategyCompetitiveStrategyInternationalizationStrategyStrategicManagement2★veryclearbusinessscope—“FastFashionRetail”.★Developmentalstrategies★MarketdevelopmentstrategyProductiondevelopmentstrategy.CorporateStrategySpanishdomesticmarketEuropeanMarketMiddleEastandAsianmarketsInternationalizationMarketdevelopmentstrategyCompetitiveStrategyCostLeadershipStrategyDonotdiscountpolicyasmallnumberbutvarietystylesclothesDifferentiationStrategyDifferentiationofproductinnovationDifferentiationofproductserviceInternationalizationStrategyStrategicgoalisbuildaglobalmultinationalapparelretailAfternearly,fromeasytodifficultFromlowrisktohighrisk,lowdegreeofcontroltohighdegreeofcontrol.ShortLeadTimeLowerQuantitiesMoreStylesMoreFashionableClothesScarceSupplyMoreChoiceZARA'SBUSINESSMODELGOALS3BasicComponentsConceptmaintaindesign,productionanddistributionprocessthatwillenableZaratorespondquicklytoshiftsinconsumerdemandsCapabilitiesproductdevelopment,strategicpartnershipsandcostofproduction,advertisingandmarketing,informationandcommunicationtechnologiesValueDriverstangiblevalue:highturnover,netmargin,marketcapitalizationintangiblevalue:customerloyalty,brandrecognitionProductDevelopmentALargeDesignTeamreactratherthanpredictover400people12000stylesperyearLeadingtime15daysStrategicPartnershipsandCostofProductionProximityeffectinbuyingfabricsFlexibilityinadaptingproductlinestomarkettrendsLowerinventorycostsAdvertisingandMarketingAdvertisementcostadvantage0.3%&3-4%MarketingToolslocation,storelayout,productlifecyclesInformationandCommunicationTechnologiesHybridmodelincorporatehumanintelligenceandITapplicationswell-managedinventories,linkagesbetweendemandandsupply,reducedcostsfromobsoletemerchandise4SupplyChainManagementIn-HouseStrategySmallQuantityBatchProcessVerticalIntegrationSupplyChainManagementJITSystemSuperReactionProductionSystemDesignerPOSDataAnalysisandCommunicatingwithManagerMorethan400Tailors•ClicktoaddTextBasicFabricPurchase&DyingDeliverfromheadquartertostoredirectly.HeadquarterWarehouseandotherwarehouseallaroundtheworldTextile&ColorDesign&OrderDistributionDelivery&ReturnManufacturingLeadTime3weeksIn-HouseStrategySmallQuantityBatchProcess◆Principleofsmallquantitybatchprocess◆Produce100,000~350,000clothesforaproduct◆Increasethenumberoftimesbeingreleased◆TomakecustomersexperiencethenewproductsVerticalIntegration◆49%ofproductsofInditexareproducedinEurope.◆35%and16%ofproductsareproducedinAsiaandtheotherEuropeanCountry◆Inditexhadarelationshipwithmorethan1200outsourcingcompanyin2008◆Inditexkeep50%ofsupplyanddemandofthefabricbyusingin-housewayand50%ofsupplydemandisbalancedbyoutsourcing.SupplyChainManagementSalesAnalysis&DesignsRevisionofthepattern(Utilizationofpreviouspattern)PurchaseoftheFabrics(OwnedFactory)ManufacturingCutting(OwnedFacotry)Sewing(Outsourcing)Finishing(OwendFacotry)ReleasingDistributionStore3days1week1weekJITSystem◆ZARAadoptJIT(JustInTime)tominimizeInventorycost◆VerysmallamountofproductiontominimizeInventory◆KeepproducingcharacterfulclothesSuperReactionProductionSystemBeforeSeason(9months)Season(6months)TraditionalTextileBrandZaraVisitingFashionShowDesignReleaseCollectionProdcutionDistributionandSalesPurchasingDiscountDesign&PurchasingTextileOutsourcingProductioninownedplant65%35%55%40~50%15%85%TheChallengesfromCompetitor5CompetitionanalysisCompetitor-ProductZARA:QuitefashionUpdateintimeEnoughpatternPoorqualityUniqlo:GoodconditionproductsStrongstabilityH&M:Designerandcelebritiescooperatetodevelopbrandimage.HighlevelfashionableclothesMANGO:HighqualitywomenclothesCelebrityeffectOthercontinentalbrandsAcceptablequalityThelackoffashionVSVSVSVSFundamentalfunctionofclothesdomuchthreattobrandZARACompetitor-PriceBasedonthesurveyfromwebsites:PercentageofaffordablepeoplerespectivelyareH&M57%,ZARA44%,Mango35%.Percentageofvaluableproductaccepted:H&Mtakesup44%,Mangooccupies29%,bothdonewellthanZARAof26%.Meanwhile,itisnotanobviousadvantagethatthepriceofZARAfailtocompetewithcontinentalbrandslikeBalenoandBossini.AdequateprofitandsuperioritycannotbeachievedbyZARA’scurrentpricecond