Zara Binokishoresaranyavygha 100222135341 Phpapp02

8/18/2019 Zara Binokishoresaranyavygha 100222135341 Phpapp02

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Bino JosephKishore Thomas John

Saranya M

Vygha N K

Procurement & OutsourcingStrategies at Zara


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History of Zara


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Case acts T!o seasons " Spring#Summer an$ a%%# inter


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Cont$'Zara e-perience$ on%y./01+2 mar)$o!n sa%e of season 3o%ume4


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Competiti3e a$3antageast pro$uction


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56cient $istri(utionast $e%i3ery of ne! pro$ucts7 $esign an$ tren$s

Strengths8i9erent strategy:nformation techno%ogyCost %ea$ership strategy

Strengths:nformation techno%ogy

ast $e%i3ery of ne! pro$ucts7 $esign an$ tren$sCost %ea$ership strategy8i9erent strategy56cient $istri(ution


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Strategies

O(;ecti3es

M:S

mar)eting

$esign

pro$uction


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Pro$uction & $istri(ution• Maintain (i%ity to pro$uce ne! tren$s


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M:S• Pro$uct $istri(ution system• :mpro3ing in3entory system• Or$er information ?o!0@ stores

or$ering systemMar)eting• = & 8• Mar)et penetration• Mar)et 7 %ocation of stores 7

consumer (eha3ior ana%ysis


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>na%ysis


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Zara sources fa(ric7 other inputs an$,nishe$ pro$ucts from e-terna% supp%iers4Purchasing o6ces in Barce%ona & HongKong4Buying more from China might re$uce thecost of goo$s so%$ in future4


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:n$ite- o!ne$ Com$ite% that manage$$yeing7 patterning an$ ,nishing of greyfa(ric an$ supp%ie$ it to e-terna% an$ in0house manufacturers4Vertica% integration he%pe$ to re$uce the(u%% !hip e9ect4:t a%so o!ne$ 1+ other factories for interna%manufacturing that app%y Just :n Time 4


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Zara $oes not compete on prices4 They compete on%y on fashion for !hich


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%o(a% scenarioBui%$ a $ecentra%iDe$ $istri(ution &pro$uction in each region to high%ypenetrate the mar)et an$ to re$uce thecomp%e-ity of the process4Va%ue chain shou%$ (e e-ten$e$ in eachregion e9ecti3e%y4


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Aoo)ing ahea$Current supp%y chain mo$e% must (echange$7 canEt (e continue$ for %ong4:n or$er to remain competiti3e an$ contro%costs Zara might ha3e to mo3emanufacturing to :n$ia7 China4

This might pre3ent Zara from refur(ishing itspro$uct %ines in


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Documents

Zara Binokishoresaranyavygha 100222135341 Phpapp02