Zara Essay

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53 ds fast with good serviced tDifferenceUNIVERSITY OF LA VERNE BUS 510 Management Information Technology CRN: 2113 Individual Case - ZARA October 23, 2012 Dr. Yehia Mortagy Wei-Chung Tseng (Robert) 11062516 College of Business and Public Management Summary ZARA is a successful fashion company in the world. They have competitive advantage in the fashion industry. ZARA create the differentiation with other fashion industry. Make their customers believe ZARA’s clothes is the newest fashion and hard to find out the same one. Therefore, if I don’t buy today, I might can’t get it in the future or other stores. To create the strategy to produce more and more different products to different stores, ZARA uses a lot of Information Technology (IT) to help them operate business. With those hardware or software systems, ZARA can reduce the time from design to sale. It also reduce the cost to operate the big business. However, some of the IT system like Point-of-Sale (POS) is still use MS-DOS system. Therefore, some managers think it’s time to upgrade the system, or it might out have time. On the other hand, some managers think the system now is perfect, ZARA should still use it. It will have a lot of problem when upgrade to a new system. Below are the analysis about ZARA’s situation and the recommendations for ZARA. Five Forces Analysis of ZARA To analysis ZARA, first is to know the industry of fashion. With Porter’s theory, we can easily understand the fashion industry with five forces analysis and find out why ZARA can success. Threat of New Entrants It’s not easy for new entrants into the fashion clothes industry to threat with ZARA. The first thing is the new entrants will have to high and large fixed cost. Those are for the new entrants looking for designer, factory, and open stores. The new company needs to provide the newest fashion
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