Discussion Topic on E-Supply Chain – Zara’s Case study
Download the above and READ it first. You need to refer to the a different case study with similar topic frm Chapter 7( pg332-333) – E-Commerce textbook.
Discuss the following ( in a discussion manner, please) BY REPLYING to this MESSAGE ( that simple means that YOU NEED TO PUT YOUR ANSWERS IN THIS COMMON BLOG). A one-line paragraph of answer are NOT advisable. Put your best idea forward. Choose to ATTEMPT ONE question and your peers may reply to your post IN HERE ( common blog) as well.
Questions Part A.
1. Why is the fashion industry so competitive?
2. Why do you think excellence in supply chain management may be an important ingredient in success in the fashion industry?
3. What were the underlying reasons for Zara’s success?
4. Success relied on having “five fingers touching the factory and five touching the customer”. What does this expression used by Zara means?
5. Discuss some of the risks you feel are evident in Zara’s approach to supply chain management?
Question for Part B ( POST the answer for THIS SECTION ON YOUR PERSONAL BLOG)
1. Choose ONE corporate portal and describe its nature of business AND different types of companies that collaborate with the chosen company portal earlier in the e-supply chain management system.
February 24th, 2008 at 10:35 am
1) WHY IS THE FASHION INDUSTRY SO COMPETITIVE?
Fashion industry is so competitive because new designs are needed for each different season. In most of the western countries, there are four season in their country. So when each season arrives, designers must be ready with their products and ideas. It is really a competitive industry as designer must squeeze their brain for new ideas. Not only that, they must be able to come out with unique design for different runway show. Thus, we can conclude that fashion industry requires people who are bold, creative and innovative enough to secure a place in this tough industry.
The numbers of designers does not remain stagnant. In fact, it always increase as there are new designers who wish to crave their name in this fashion industry. With the newcomers, competition gets tougher. Since they are new, they are able to provide fresh ideas. However, idea may run low if they do not keep coming out with new idea. So, once again, the experience designer will take over the lead and becomes a big competitor to the amateur designers.
Furthermore, big and well-known brand are always trying to improve themselves. By doing so, it enables them to continue to secure a place in the consumer’s heart and also in the fashion industry. They are trying and doing their very best in order for them to achieve their ultimate goal. Indirectly, they are competing with other competitors which are already famous for their own brand. With all their efforts, brand which customers hardly heard off will suffer and, it will take a long time for them, the unfamiliar brand to break-in the fashion industry. Hence, fashion industry is an aggressive industry to be in.
In addition, brand like Zara, are famous for being able to go from design phase to delivering finished goods to its ware house in just two to three weeks. Competitors of Zara might take nine to twelve months. The time lapse is so long and this has certainly created a competitive situation among Zara and other brands. Zara’s competitor are putting their best effort and improving themselves so that they too, can achieve result like Zara. Before, it is totally impossible to do all these in such a short period but, Zara has successfully proved it wrong. Therefore, the fashion industry has became more competitive.
In conclusion, fashion industry is a very competitive industry to be in. One must have determination, work hard and smart to be able to secure a place in this industry.
February 24th, 2008 at 9:26 pm
well done, keep on posting on your great ideas…hd fun reading your post…
In fact in any field besides the fashion industries are very much competitive now…
However, to further concentrate on Zara’s Case, the competitive advantage they had over any existing companies in the fashion/design industry has brought them a step forward in delivering the products directly to the customers.
Therefore, do you agree that e-supply chains does play a vital role in achieving a good branding name in the market?
How does Zara’s achieve a good e-supply chain? What possibly could they hv possibly employed in order to achieve this? Anyone?….
February 25th, 2008 at 6:20 am
Why do you think excellence in supply chain management may be an important ingredient in success in the fashion industry?
Supply chain management is the heart of every business. Efficiency in the flow can determine on how successful your business can be.Supply chain management is a cross-functional approach to managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and then the movement of finished goods out of the organization toward the end-consumer. As organizations strive to focus on core competencies and becoming more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity.
Therefore, when theres excellency in the Supply Chain Management the company will benefit from all sorts of responsive revenue of executing strategic, tactical, and operational activities.
February 25th, 2008 at 6:48 pm
Fashion is one of the most competitive industries. One of reason is that the fashion companies have trade secrets like the use of software tools for fashion design and to logistics management of the entire value chain. The core trade secrets in some businesses may serve to protect the computer-implemented, software-based business models which underpin an entire business strategy based on stealth and speed, to supply a limited quantity of fashion products.
Let’s take ZARA for example. ZARA uses a proprietary information technology (IT) system to shorten their production cycle – i.e. the time from identifying a new trend to delivering the finished product – in 30 days but for most of their competitors take from 4 to 12 months. Its designer quickly prepares new styles when the company receives daily streams of e-mail from store managers signaling new trends, fabrics and cuts. The fabric selected is immediately cut in an automated facility, and sent to work shops. A high-tech distribution system, with some 200 kilometers of underground traces and over 400 chutes, ensures that the finished items are shipped and arrive in stores within 48 hours.
Besides that fashion design applicants should have the creativity and a serious passion for fashion because design is one of the most competitive areas of the fashion industry. So, you’ll also need to be extremely ambitious, confident and dedicated. Designers should be good team players who work well under pressure in a fast-moving environment. Obviously drawing skills and the ability to visualize ideas are a must. A varied portfolio showing a range of styles and skills is essential at interviews.
Furthermore, competitors like Armani have extended the brand into multiple other categories such as Armani Casa (up-market furniture), Armani-branded Dolci (confectionary), and Armani-branded Fiori (Flowers). And to add to this wide portfolio of brands, Armani very recently struck a deal with a Dubai-based property group Emaar to come up with a chain of 14 Armani branded hotels and resorts by 2011.As is the trend in the fashion industry to operate in the entire spectrum from apparel, jewellery, cosmetics, watches, perfumes and luxury hotels, Armani has been able to leverage its brand equity to be present in most of these lucrative sectors. So, in order to maintain in the market, fashion companies have to always find ways to extend their brand further.
February 26th, 2008 at 1:02 am
3. What were the underlying reasons for Zara’s success?
the underlying reasons of Zara’s success are the low cost plan by employing informal economy workers that are grouped from grandmothers,housewives and teenagers that are looking for income from the small towns and village that they lived in.
Also,Zara focuses on having more retail locations than advertising to attract customers to the stores.Another reason is the way Zara changes the designs of the products to the most up to date fashion is by forecasting and reacting to the latest fashions and the management will start producing the products in a small amount in order to avoid big losses.Zara changes its products in a short time period and this prevents the items from being discounted because the buyer will have to purchase the item in that period of time or else the item will be changed and the buyer wont be able to purchase the item he/she wanted anymore.
February 26th, 2008 at 1:48 am
Clothes are one of the important needs for human; therefore it makes Fashion one of the most competitive industries in the world. Different clothes are able to show a different image of yourself towards other people. So a person’s image is very important, therefore the demand for new clothes and fashion are always in high priority. However, there are numerous companies in the fashion industry, and one of the famous and successful one is Zara. Its kind of challenging in the fashion industry because of the fashions and human’s taste are unpredictable and easy change. So it brings a lot pressure towards the designer at times. However the designers will make use of the feedback and suggestions from the customer in order to fulfill their demand.
Now days, many other Fashion companies are competing with Zara, But they failed. The factor that makes Zara famous is that it manages to go from the design phase to delivering the finished good to its warehouses in a 2 to 3 weeks time frame, whereby the other competitors will take about 9-12 months. It’s a big different therefore Zara is the successful one. Another reason why the fashion industries are so competitive is because there are many others well known companies like Nike, Giordano, Billabong and so on, therefore they are all going after the latest trend and companies that are left behind lose.
In conclusion, we have to say thank you to all the designers because they really spend a lot of time in designing new goods for us to make us feel better and bright. “Clothes make a man”.
February 26th, 2008 at 9:39 am
1)Why is Fashion Industry so competitive?
Well,the first point tat i would like to mention is tat,globalization.. nowadays,the people around the world,especially the people from age 20 to 50,they r actually entering the world of fashion..in this era,the ppl from every single country seeks for the best quality and the most updated fashion or clothes..moreover,nowadays,everyone mentality is tat,quality over quantity..they would rather buy ONE clothing with extremely high quality or “in” rather than buying ALOT of clothing that is considered “out of the market” or low quality standard..although they both cost almost the same price,but its the quality and the “in” design tat counts..
On the other hand,i believe tat the society nowadays also prioritize on low prices..but of coz,not forgetting the quality..the point is,r there such products tat r high quality and sold at reasonable prices??yes there is,which is sold in a shop called ZARA..ZARA is a truly an eternal bliss for smart shoppers and also shoppers who thrist for high quality or latest design for clothes..
Anyhow,the fashion industry will also become more and more competitive bcoz the companies who is involved in this industry,or rather most of the companies from other industries r having a very efficient e-supply chain..they get to deliver their products from the manufacturer to the warehouse and then to the retailers and eventually to the customers..
In conclusion..not only the fashion industry is competitive,whereas every industry and every field in this society is..Hence,we’ll hv to play hard in our game of business in order to suceed..
February 27th, 2008 at 10:38 am
I thnk consumers are the ones who makes fashion industry competitive,firms thy usually prdc guds 4 ths pipo so ya!thy cntrl the markt…Different consumers have dffrnt tst and ts so hrd 4 one firm 2 prdc dffrnt guds to fit dffrnt cnsmrs,firms mst segment the mrkt, ds means thy hv to prdc dffrnt guds n srvs to dffrnt cnsmrs who hv same characteristc whch is so impossible and smtyms it doesnt guarantee hghr sales rtns….Hey mr. did u rsrch on the age of pipo hu likes fashion???????
February 27th, 2008 at 8:19 pm
3)WHAT WERE THE UNDERLYING REASONS FOR ZARA’S SUCCESS?
First,the underlying reasons Zara success is the employ worker such as mother,grandmother and some teenager girls that wanna to earn some income in their house area.
Secondly,the company is no need to pay high industrial wage. they just pay around $500 per month. Furthermore they also have they own prime location to advertise to the customer so the customer will go into its store.
Zara’s success also because of they trend. They will keep changing the fashion in 2-4 week to make other retailers have the lost of cause to try and respond on they sales.Zara also will do a discount for the old stock so that they can cut down the stock. They giving 18% of inditex clothing that doesn’t work and give customer 35% discount rather than markdowns.
Not just that but they deliver fashion is hot and not more than that shirts and pants that for customer but now they also are certainly voting for feet and wallet to sale in Zara.
March 2nd, 2008 at 5:31 am
Why is Fashion Industry so competitive?
clothings are one of the main usages in this current era. without clothings, well i dont want to think about that..people around the world are now having high taste and materialistic about fashion. not only adults or teenagers are in to fashion but nowadays kids too. If u go to gardens or 1utama, you wil find GAP Kids, and GUESS Kids. Imagine a 5 year old wearing branded t-shirts. Alot of Brand fashion industry are now competing as we speak.
Zara has a strong brand name in every country.passers by and shoppers would be interested in a strong branded fashion industry. Zara mostly sell formal attires compare to sports. Normal T-shirts, polo shirts and formals are sold in Zara. They are really neat and uncommon. Their designers are paid highly by just desining a clothing.
March 3rd, 2008 at 5:09 pm
Fashion so competitive because everyone need wear clothes… Although have no money to buy clothes, they wont naked. Maybe put some leaf on body also a fashion… =)
Everyone wearing clothes in minimum requirement. But some people dont mind about their out looks, a lot people care about their looks/image, so they want the special and defferent clothe. Fashion update a person, everyone wants to upgrade himself, and everyone also will compare no only which clothe are more fashion and also the price. Cheap and Good always the smartest choice. Zara provide the cheap and the most fashion clothes. Not only fashion clothes, but others. I like formal wear =)
March 9th, 2008 at 8:31 am
Why is the fashion industry so competitive?
Fashion industry is so competitive is because,the first point is because we humans need to wear cloths, therefore the fashion industry is the one most competitive. A suitable clothing can describe a man or lady look and behavior. One of the famous and successful fashion industry is Zara. the designer keep on making new clothes for us and its affordable.
Why is Zara famous and successful in fashion industry is because many middle age mother would like to shopping and buying cloths in Zara because is cheap and age in mid 20s buy Zara cloths is because is fashionable. The information and communications technology is at the heart of Zara’s business thats makes Zara is the one of the famous and successful in fashion industry
In conclusion fashion is very important and its a very competitive industry towards other fashion industry but Zara still the best.
March 10th, 2008 at 11:41 pm
1)Why is the fashion industry so competitive.
The fashion industry is so competitive because theres a wide network of customers. Basicly everyone wants to keep up with fashion. Competition from international brands and even the local brands is one of the reasons why fashion industry is so competitive. Image matters to most people. In order to give a good image or impression, clothes play an important role. The reason why the fashion industry is so competitive is because everyone wants to keep up with the latest trends, changes in fashion. Therefore the fashion industry is ever growing with everyone as its customers.
March 11th, 2008 at 12:19 am
Fashion industry is so competitive because everyone in this world needs clothes. Fashion is in everyones mind because it shows the image of a person. Fashion trends changes every now and then, therefore companies have to keep up with it in order not to lose their customers. Theres a wide range of customers in the fashion industry. The amount of money spent on clothes in the fashion industry is huge. Therefore the fashion industry is extremely competitive.
March 11th, 2008 at 1:18 pm
Why is the fashion industry so competitive?
Fashion World is so competitive because there is a lot DEMAND in it.In others seasonable country theres a a lot demand on each season.”Fashion”is Hardly to be explained.Because there’s the much way to say a Fashion.I mean there’s different lot fashion in different lot of places.
In fact,clothes are the second important after foods i guess?
Clothes can exactly show a personality on first sight.