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Case
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Reference no. 615-059-1
Prize winner
Authors:
Kasra Ferdows (Georgetown University); Jose A.D. Machuca (Universidad de Sevilla); Michael Lewis (University of Bath)
Published in:
2015
Length:
18 pages
Data source:
Field research

Abstract

This is an updated version of the prize-winning and 15th in the ranking of top 40 overall best selling Zara case by the same authors. The parent firm, Inditex, has continued its remarkable growth since then: profits rose from 340 million euro in 2001 to 2.5 billion euro in 2014. The number of stores increased from 1284 in 39 countries to 6683 in 88 countries. This translated into an average rate of more than one new Inditex store opening every working day during the last decade. During the last decade, despite its increased size and the global reach of its operations, Zara (accounting for over two-thirds of Inditex's sales) had defied, repeatedly, the predictions of those who had suggested that it had reached the limit of its business model. In 2014 Zara remained a benchmark for speed, agility and flexibility, delivering fast accurate fashion to its 1923 stores (located in 88 countries worldwide) in just fifteen days after design. How could it continue its remarkable global growth unabated, even during the post 2008 economic crisis? The new case, like the previous one, is based on extensive interviews with company managers and employees. It presents a detailed and updated description of Zara's unique operating model and many of its best practices: its retailing, design, order administration, production, and distribution systems. It also includes new sections about Zara's on-line business and Inditex' increased attention to ethical and sustainability issues in its extended supply chain. The case can be used in undergraduate, MBA and executive levels on core or elective courses, such as: Production and Operations Management, Supply Chain Management, International operations, operations strategy, global logistics, product development, innovation and marketing. The teaching note supplement includes appendices as a power point presentation and several photographs from Zara's operations. This case has been featured on our website, click to view the article.

Topics

Supply chain management; Global supply chains; Design-production-distribution-retail integration; Production and operations management; Fast response networks; Fashion retailing; Manufacturing-marketing interface; Time based competition; Queuing and inventory models; Zara
Industry:
Size:
Large multinational
Other setting(s):
2014

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