GROUP 3

TEAM | SEHNAZ | RAHUL | DHRUV | MEGHA

*KINDLY REFER TO THE NOTES ON CERTAIN SLIDES FOR EXPLANATION.

SNAPSHOTS

1. What is fashion

2. Analysis of ZARA

3. Blue ocean strategy

4. What should ZARA do regarding its IT system?

5. Learning from ZARA

WHEN WE TALK ABOUT

FASHION. WHAT IS THE FIRST THING

THAT COMES TO YOUR MIND?

WHAT DO THESE MODELS HAVE IN

COMMON?

36-24-36

EVEN YOUR RIVALS KNOW THAT

ZARA CUTTING EDGE

PORTER FIVE FORCES

TIME FOR CHANGE?High competitions

Price wars = low profit margin

Exploiting existing demand

OVERSATURED MARKET

= RED OCEAN

HOW DO WE CROSSOVER TO

THE BLUE OCEAN?

ZARA+

FAT IS THE ‘NEW THIN’

WHY?

THE ISSUES

1700 stores globally but only 45 in USA

REASONS:

USA obesity percentage is higher than European counterparts

ZARA does not produce clothes for larger size people.

http://abcnews.go.com/GMA/video/zara-fashion-line-sizes-coming-time-17726650

THE WORLD IS GETTING BIGGER

SHOULD

ZARA

MODERNIZE HER

IT SYSTEM?

WHAT IS ZARA USP?

First to deliver the latest fashion

Earn the first producer advantage

Fast supply chainLaunching new design within 3 weeks

WHY CHANGE THE SYSTEM THAT WORKS?

• Rapid globalization of stores

• Current system becoming obsolete

• Delicate system with limited workforce to repair it

• Keep up with current technology so

ZARA doesn’t get left behind!

THE BEST WAY TO IMPLEMENT IT?

1. Test-drive new system in the new store first

2. Identify potential problems and rectify them

3. In the mean time, the company will have two software running for a period of time

4. Operating cost will be higher but our supply chain won’t be affected

5. So this way ZARA doesn’t lose her USP

6. Once the system is running smoothly, we will start introducing these system in the old stores

LEARNING FROM

THEY UNDERSTAND WHAT IS THE MOST IMPORTANT ASPECT OF THE

INDUSTRY.

RAPIDLY-CHANGING TASTE OF THE CONSUMERS

THANK YOU