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Zara Fast Fashion. Zara owns and manages numerous resources that can be categorized
as tangible, intangible or organizational capabilities. ...
... Zara has it own unique business model that enabled Zara to be compete with its
competitors, and it’s driven by Zara’s “fast fashion” with its ...
ZARA: IT For Fast Fashion. Problem Statement: In 2003, Zara's CIO must decide whether
to upgrade the retailer's IT infrastructure and capabilities. ...
... Zara: Fast Fashion Report Questions 1) With which of the international competitors
listed in the case is it most interesting to compare Inditex´s financial ...
... Zara specializes in fast fashion. ... Introduction: Zara is an apparel chain specializing
in fast fashion. It is owned and operated by the Inditex of Spain. ...
Submitted by vgupta08 on October 17, 2007
Category: Business
Words: 1003 | Pages: 5
Views: 1007
Popularity Rank: 5,482
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Zara owns and manages numerous resources that can be categorized as tangible, intangible or organizational capabilities. The interactions between tangible and intangible resources help create organizational capabilities that provide value to the end consumer.
Zara has a large variety of tangible resources due to its international expansion and vertical integration. Zara has 507 stores around the world with a total selling area of 488,400 m˛ and €1,050 million of Inditex’s capital invested into them. It also owns a 130,000 m˛ warehouse in close vicinity to its headquarters in Arteixo, Spain. In order to accommodate the company’s initiatives for backward vertical integration, Zara purchased 20 factories that were highly automated with machines that were specialized for specific garments. 18 of these factories were located near headquarters, which minimized transportation costs. Zara provided financial support, technology, logistics and most, if not all business to the 450 workshops it sent cut garments to for sewing purposes. Legally, these businesses were not Zara’s subsidiaries, but considering how much it invested into them, it practically did own them. The company owned a 400,000 m˛ distribution centre in Arteixo, smaller centres in South America and eventually had to purchase a new facility of 120,000 m˛ to provide for its expansion. The new centre was near the airport, and had a railway and road network nearby, reducing delivery expenses. Stores were located in fashion districts and upscale shopping centres and inventory consisted of garments, accessories, toiletries and cosmetics. Most stores were leased, but owned property was purchased for a total of €400 million with a current market value of four to five times that amount. Zara spent more time and money relocating, updating and expanding its stores than its competitors.
The company has many intangible assets that work together with their tangible...
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