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1Sourcing Decision of ZARA IndustryStudent’s NameInstitutional AffiliationCourse Number Course NameDue Date
SOURCING DECISION OF ZARA INDUSTRY 2Sourcing Decision of ZARA IndustryIntroduction to Business Unit Zara is among the famous fashion brand retailers globally. The company was established by Rosalia and Amancio Ortega in 1965 and Inditext company is Zara parent. Zara company operates as leading company in textile industry in Europe but it is considered as pride of Englandsince it originated there. Zara enjoys leading position in the industry because of its successful approaches of just in time and speedy fashion. Zara is full stack retail fashion company as their products follow unique line like design-production –store, a strategy which is different from other competing enterprises (Lu,2014). The company is said to have more store (over 1500) everywhere in Europe and also it has been implementing other detail stores in parts of America and Asia. The company mission statement is to walk at the pace of society dressing, trends, tastes, and ideas that the society has sanctioned. the company has visionary ideas of giving its customer exclusive choice of fashion. Zara vision statement outlines that this can be achieved by provision of quick stock turnover contrary to other fashion retailers in the industry. Zara Company Supply Chain strategy Zara company uses fast fashion design as its global strategy. Use of this approach means that the company should produce quick and quality fashion products that should re3spond to the fast moving trend in the textile industry across the world (Zhenxiang & Lijie, 2011). Fast fashionstrategy is deeply influencing Zara company in the way they are designed and organized their supply chain. Another strategy Zara company uses is just in time (JIT). This is an approach that responds quickly to customer’s needs. Zara being a full stack company means it is more of retail
SOURCING DECISION OF ZARA INDUSTRY 3but it is not retailer store because of its cooperation with Inditext. Inditext are the real owner of Zara brand which is a big tissue corporation (Zhelyazkov, 2011). The use of just in time strategy means that the company has zero stock, a strategy the is very essential to the company as it produces batch of collection depending on the rate of the uncertain customer demands. Just in