Zara Value Chain Analysis

Zara Value Chain Analysis

Zara has high operational effectiveness. With a creative team of more than 200 professionals, Zara’s design process is closely to the public. Information travels from the stores to the designers, transmitting the demand and concerns of the customers. Zara's shops use Information Technology to report directly to its production centers and designers in Spain. Shop managers use PDAs to check on the latest clothes designs and place their orders in accordance with the demand they observe in their stores. Thus, they directly contribute to a streamlined fashion collection of the entire company. The designers at headquarter collect and evaluate these suggestions and they arrive, produce designs on their computers, and, when finalized, send them over the company intranet to a factory. The result is that Zara designs and produces as many as 10.000 new items every year.

In the manufacturing environment, Zara’s product development teams are responsible for attending high-fashion fairs and exhibitions to translate the latest trends of the season into their designs. Also throughout the season, Zara’s product development teams are constantly researching the market by travelling to universities, and clubs around the world to track customer preferences. Additionally, the young, fashionable, and international staffs help to interpret the desire of the moment (Zara).

In the retail environment, Zara’s managers and sales associates are in charge of transmitting the sales analysis, the product life cycles, and the store trends to the designers. This allows the designers in Spain to develop the right products within the season to meet consumer demand. The transfer of this communication is also accelerated by IT software that is specifically designed for Zara’s diverse business (Zara)

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