311 assignment.docx - William Rol BUAD 311 Hiroshi Zara...

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William Rol BUAD 311 Hiroshi 4/19/17 Zara Case Study 1. What makes Zara different from other (typical) apparel companies? Zara offers compelling quality and price through efficient production capabilities and in- house design. Zara also offers attractive stores in prime locations on premier commercial streets and in upscale shopping centers. Zara’s planning and design cycle allows for the timeline for a season to begin a year or so in advance. If an item was not selling, further production could be eliminated. If an item sold well, more units could be made up within a week or so, assuming the fabric was available. Zara would produce more to meet demand to the extent of fabric in stock, but no more. When the initial collection had items that were performing poorly in stores, Zara could respond with alternative offerings, while most apparel retailers could only respond with increased markdowns and more aggressive (costly) advertising to move unpopular merchandise. Zara retains about 50 to 60% of the inventory whereas other apparel
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