This means that an organisation such as Zara can retain a large customer base, by continuously improving its range and developing new products, on an ongoing basis. It has to know the entire system before taking any permanent step. It is clear from the list above that political factors often have an impact on organisations and how they do business. Zara have a well established brand name worldwide 4. The information systems are the heart of the business model which enables. As a result, consumers are changing, competition is fierce, and companies are evolving to meet these demands. Since Zara has a global existence, the management must take in to account the political situation of countries in order to avoid unnecessary closures of their business in that particular country the organization plans to enter.
This is one of the strengths which will attract both potential and current customers to support the brand. In this manner, the pressure is always on the Zara products in terms of ensuring that they are following proper litigation in their business operations. For the special forces unit of the Slovenian Military Police, see Specialized Unit for Special Tactics. The geography of the world economy. From economic to political, social, technological and others, all these factors have a very deep impact on businesses. Instead of outsourcing its work to cheap labor markets of Asia, it makes the most out of the cheap labor supply of Portugal and Galicia.
One important effect of the control is to re reduce the bullwhip effect. Each of these components has the potential to affect the firms industry and competitive environment; some will have a more important affect on others though. Zara is the flagship chain store of Inditex Group owned by Spanish company tycoon Amancio Ortega, who also owns brands such as Massimo Dutti, Pull and Bear, Oysho, Uterqüe, Stradivarius and Bershka. Technological efficiency has become a mark of effectiveness in 21st century. Inditex calls it Green to wear technologies.
It is worth noticing that Zara competitors rely heavily on costly advertising campaigns. Βασιλικοπούλου Ομάδα Εργασίας: Βασιλική Αλεξίου Α. She is roommates with her best friend Lauren. Executive Summary : 4 3. Inditex operates in textile design, distribution and manufacturing. From manufacturing to marketing and supply chain, there is hardly a business that has remained unaffected by technology.
The store locator will show you the closest stores around the entered location. For instance, higher inflation rates may mean that a certain brand may not be affordable by the public. People from all over the world are efficiently able to communicate and share ideas through the internet, or even conferences, without any geographical barriers. Variation in seasons requires rapid fashion change based on the local weather. Fashion, Product lining, Production and manufacturing 1166 Words 4 Pages Supply Chain Management — Case Assignment 2 Guidelines for submission The questions in this document should be answered for the Zara case, which can be found on pages 267 — 279 of the text book. Technological: This factor takes into consideration all events that affect technology. Previous statistics of Zara suggest that Inditex sales in Spain in 2011 were 25%, although, in 2009 the Inditex annual report showed that the sales 6.
This has a large impact on B2C organisations in particular. The company is engaged in textile design, manufacturing and distribution. It has to know the entire system before taking any permanent step. Apart from partnering the local brands, there remains no other way to penetrate such markets. The use of data has reached an unprecedented level.
What is Zara business model? In both of the important Asian nations including India and China, red tape is a major barrier for the foreign brands trying to enter. These elements are considered as the driving forces for the success or even the downturn of a business. This has been achieved with full recognition of the external environment and competitive pressures being faced by organisations of this nature, something that is particularly relevant during the difficult economic times, when consumers have less disposable income available in order to purchase fashion clothing items. The company invests a handsome amount of money buying storefronts beside luxurious brands to own the label of luxurious brands. Inditex, a holding company for Zara, other retail chains and internally owned suppliers was formed in 1985. Firstly, when looking at the threat of entry, it can be seen that there are relatively no entry barriers for those looking to enter the industry. Barriers to entry are fairly low.
Analyse de la situation de l'entreprise 1. Any activity under taken by the business will not go unnoticed by government. Environmental: Sustainability that started as a trend has now become one of the most important concerns for businesses globally. Discounts and offers: It is in our habit to incline to perceive add-ons such bonus packs as gains so as price discounts. Indian Market: India provided open market for Zara as Indian government is willingly to provide foreign investment in their country, but Indian Govt.