Zara has been approached to and considered their business as a perishable commodity business just like a fresh baked cake or bread to be consumed quickly.
Thus, the main business tactics of the company in context of this business philosophy is ;
[ Short lead time ] More fashionable clothes and embracing quick changing customer's tastes
[Decentralized Management] Taking advantage of the intelligence and trust the judgment of employees
[Lower quantities] Inventory will be formidable burden in perishable products
[More styles] Providing more choices for customers and more chances of hitting it right... displayed 300 characters
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Much of the process are standardized and simplified under the excellent control and employee's intuitive decision making latitude. In short, the principle of Zara's business operation is optimization of all business process and get rids of all redundancies and unnecessary things. More extended or peripherals of the principles can be summarized as follow;
Keeping up with fashion ; short lead time and quick response to the market
Reducing risk ; reducing the quantity of manufactured so that reducing burden of stock and burden of frequent discount sales
Ownership and control of production ; vertically integrated manufacturing operation to enable its constant introducing of new items and also ensure short lead time
Highly people intensive process ; place great autonomy on employees
React rather than predict
2) What is the essence of Zara's IT strategy?
Zara runs an information-intensive business with remarkably little information technology... displayed 300 characters
