Question 1
Zara is the flagship chain store of Inditex Group owened by Spanish tycoon Amancio Ortega.The group is headquartered in La Coruna, Spain, where the first Zara store opened in 1975.It is claimed that Zara needs just two weeks to develop a new product and get it to stores.Zara has resisted the industry wide trend towards transferring production to low cost countries .Perhaps its most unusual strategy was its policy of zero advertising , the company preferred to invest a percentage of revenues in opening new stores instead.
Others companies, on the other hand, prerfer to open franchises and produces their clothes in underdeveloped countries, where the wages are lower. They use a third company who is responsible for the quality, raw material, shipping etc. It can take till 5 weeks to have a new collection on stores throughout the world.
Question 2
Zara use the computer based information system.Most information system beyond the smallest now use eletronic means to collect data and provide information. Using this system Zara was able to respond almost immediately to emerging consumer trends as well as to the demands of the company's own customers—for instance, by adding new colors or patterns to existing designs.
Question 3
The system allows the company to avoid taking on the risk and capital outlay of developing and maintaining a large back inventory.
The company's instant fashion model, which completely rotated its retail stock every two weeks, also encouraged customers to return often to its stores, with delivery day becoming known as "Z-day" in some markets. The knowledge that clothing items would not be available for very long also encouraged shoppers to make their purchases more quickly....