Exam 3: Zara: Fast Fashion From Savvy Systems

Limited production runs ensure customers do not have to visit Zara's stores as often as they visit other stores, allowing the firm to save money through staff reductions when compared to peers.

_____ are critical for capturing sales data, and are usually linked to systems which manager a firm's inventory.

???????????????_______are goods to be further customized based on designer/manager collaboration.

According to an independent study, Zara books some 85 percent of its products at full price compared to the industry average markdown ratio of 50 percent. This is made possible by:

Making seasonal apparel decisions is a challenge because it often involves making predictions on what customers will be interested in, months in advance of clothing appearing on store shelves.

Zara's high fashion styles are inspired by customer tastes, with technology used to gather data on preferences at given store locations.

How does Zara differ from its competitors in converting ideas into products?

Zara also saves money by simplifying pricing. An item sold in Bangkok is likely to cost the same as a similar item sold in Barcelona.

Zara is susceptible to any disruption in northern Spain because:

Why has Zara been more effective in leveraging technology to enhance its operating strategies than its rivals? Provide an example to contrast Zara's handling of technology in its operations.

The U.S. Justice Department initially reviewed the Fair Factories Clearinghouse but eventually approved the effort as described in readings and class. What was the government initially concerned about?

Zara ______in size between 1996 and 2000.

What is contract manufacturing? What advantages can a firm expect to gain from contract manufacturing? What are the downsides associated with this practice?

A value chain is a set of:

High-end fashion house Prada's experiment of implementing the latest technology in its flagship store failed because:

Due to limited production runs, Zara's customers:

Zara's IT expenditure, measured by IT workers as a percentage of total employees, is only slightly higher than the industry average.

Elaborate customer surveys help Zara designers predict fashion trends months into the future and design products accordingly.

Zara holds a competitive advantage over its rivals in spite of:

Our analysis of Inditex's Zara stores showed the power of data to fuel competitive advantage. List the two acronyms for technologies that Zara uses to collect data in stores, and describe what the data from each of these respective systems 'tells' the firm.