Zara International proposes the elements of classical management by implementing the notion of scientific management. Based on the textbook, "this kind of management emphasizes careful selection and training of workers and supervisory support." Zara International gives the consumer the ability to have in their possession different garments that are consistently updated every two weeks. Zara supports its workers by planning and assisting their work by allowing the workers to impact the stores business. The workers track sales which allows Zara to know the items that selling or not.
Operation management is defined in the textbook as "is the study of how organizations produce goods and services". Zara produce goods by tracking sales of certain items and create new products that are sent to different locations when certain garments are not selling.
The notion of contingency thinking consist of the ability for an organization to identify practices that best fit the demands of different and unique situations. Zara has used the technique of consistently updating their inventory to constantly keeping themselves ahead of their competitors. They price their inventory much cheaper than their competition to also create a location in which all social classes are able to purchase items.
Bases on the report: Zara Uses Operations Research to Reengineer its Global Distribution Process the company has analyzed different types of operation management to create a system in which its distribution process will give them an edge against its competition. Complexity and ingenuity in my opinion describe the distribution process of Zara International because of how quickly and reliable the process is and the ability Zara processes to continue using and innovating itself even if the company is expanding into different territories.
I think its rather interesting how Zara has been able to strategically place themselves in areas where high fashion is located and is able to maintain a good enough price for everyone to maintain. It looks very flashy and pricey when looking at it, but when you take a look at the prices its not as bogus as a gucci shirt or a LV wallet. I think this technique is very clever and has benifited them in generating consumers and having them buy their items.
ReplyDeleteYou make a good point. Zara has established a reputation of being a high fashion store that does not necessarily follow the prices of other high end stores, thus allowing them to practically shut down their direct competition. Unlike its competitor H&M, Zara consistently updates its wardrobe collection and leads the way when it comes down to fashion trends that occur world-wide.
DeleteI agree Zara is very fashionable and does not follow the same prices as the likes of Gucci, Hermes or Prada. I feel Zara plays on that European look that many Americans like and is its key to their success. Slim fitted clothes for men is one key example. And these trends seem to be affective where Zara strategically positions its stores. H&M fails not on it's pricing strategy but its quality in clothes and looks. It goes to show even though the economy is still struggling, the consumer is not as prepared to sacrifice their dress sense.
ReplyDeleteThe most interesting part to me is the complexity of their distribution process. Time is one of the most important factor when it comes to fashion. Their quick supply of new designs really helped in their great success.
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