Zara: It for Fast Fashion

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University of San Francisco “Zara: IT for Fast Fashion” Submitted to Dr. Helmut Buehler In Partial Fulfillment Of the requirements for the course MSIS 625 – IT Policy and Strategy By Cuong Le 4/10/2013 Defining the issues (Background and Problem Statement) Zara’s leadership molded a fast-paced business model where the company has three strategies and they would expect their current IT structure to complement each process of their business and decentralized culture. One of Zara’s strength is that the company has the ability to respond quickly to customers’ demands and fashion trends (McAfee, Pg. 3). Second, they have a decentralize decision making system, which permits store managers to make their own assessments about clothes and trends for their own specific store (McAfee, Pg. 3). And lastly, Zara offers customers “trendy” clothing styles with approximately 11,000 new items per year, which is by far the most in the industry (McAfee, Pg 7). Furthermore, “Zara: IT for Fast Fashion,” presents a case of 2003 where focus revolves around whether Zara should keep the current IT infrastructure and operating system they used for their point-of-sale (POS) where “[it’s] not broken. Why are we trying to fix it?” (McAfee, Pg. 1). Currently, the company depends on an out dated IT system with no full-time network integrated across their stores. Even so, Zara and its parent company, Inditex, is one of the strongest retailers in the industry. Consequently, the question arises whether to risk the reliability of the current system and use what has been working but will eventually become incompatible for future changes or transition to a new system that might affect the company’s stability (McAfee, Pg. 2). Analyzing the case data (Analysis) Zara’s existing simple system has been extremely effective, which had made the decision makers to continue with the
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