Zara Management Report

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York, New Jersey, Miami, and Toronto��with more on the way.

While Zara is unlikely to displace The Gap in the U.S. market, they are certain to offer U.S. consumers an option previously unavailable to them. They have a sound if unusual marketing strategy in which logistics plays an important role. Logistics also plays an important role in Zara's growth plans, notably its expansion into the U.S. market.

And now we want to show you how the strategy of this corporation made it possible for its success.

2 Report

2.1 Overview

2.1.1 Background information

In 1963, Amancio Ortega started a small company in Spain that manufactured women's pajamas and lingerie products for garment wholesalers. In 1975, after a German customer cancelled a sizable order, the firm opened its forts Zara retail shop.

The original intent was simply to have an outlet for cancelled orders but the experience taught the firm the importance of a marriage between manufacturing and retailing �C a ...

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and accessories that display unique style but at real world prices.


2.1.2 Fashion Industry

The fashion industry is composed of different products and markets where there is an element of style, which is short-lived. The fashion industry is characterized by the following characteristics:

1. Short Life-Cycles �C the product is often short-lived, designed to capture the mood of the moment. Consequently, the period in which it will be saleable is likely to be very short and seasonal, measured in months or even weeks.

2. High Volatility �C demand for these products is rarely stable or linear. It may be influenced by the inconsistencies in weather, media, celebrities and ...

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