Zara Case Analysis
Zara was founded by Amancio Otega. The first store was opened in La Coruna in 1975. About a decade later, Zara and many other retail clothing chains were placed under the control of a company called Inditex. Zara saw success from its date of origination, and has remained profitable because of the company’s efforts to be agile in the decision making process for the products that would make up its product lines, because of the company’s strategic marketing merchandising and advertising decisions. These efforts and strategies, overall, produced products that were consistently in line with the current trends, which meant they had a relatively short life span. Zara’s team of senior managers, store managers, and commercials worked to meet strict deadlines for ensuring the most current and fashionable clothing trends were available in its stores using a detailed inventory system that constantly shifted to meet consumer demands. Such a large fluctuation of products and inventory levels demanded that Zara have a compatible IT system to help the company track and analyze the necessary data.
Before 2003, it appeared that Zara’s IT infrastructure was in line with the company’s complex business strategies. During that time, using PDA’s to record inventory and send and receive data was a positive strategic usage of IT for a company in the fashion industry that strives to be current with the latest fashion trends. However, the fact that Microsoft no longer supported DOS was evidence that required change to Zara’s IT infrastructure would occur in the near future.
In this case study, we are informed about a controversy pertaining to Zara’s possible IT upgrade. This is seen in a dialog between Xan Saldago, the technical lead of Inditex’s POS system and Bruno Sanchez, the head of IT for Inditex. Sanchez wanted to keep the company’s current OS for the POS terminals, DOS, because, it had few technical errors and was quite easy for employees to use and...