Zara: Fast Fashion from Savvy Systems
Don't Guess, Gather Data
Questions and Exercises
- In what ways is the Zara model counterintuitive? In
what ways has Zara's model made the firm a better performer than Gap and
other competitors?
- What factors account for a firm's profit margin?
What does Gap focus on? What factors does Zara focus on to ensure a
strong profit margin?
- How is data captured in Zara stores? Using what
types or classifications of information systems? How does the firm use
this data?
- What role does technology play in enabling the other
elements of Zara’s counterintuitive strategy? Could the firm execute
its strategy without technology? Why or why not?
- How does technology spending at Zara compare to that of rivals? Advertising spending? Failed product percentages? Markdowns?
- What risks are inherent in the conventional
practices in the fashion industry? Is Zara susceptible to these risks?
Is Zara susceptible to different risks? If so, what are these?
- Consider the Prada case mentioned in the sidebar "Technology ≠ Systems". What did Prada fail to consider when it rolled
out the technology in its flagship location? Could this effort have been
improved for better results? If you were put in charge of this kind of
effort, what factors would you consider? What would determine whether
you’d go forward with the effort or not? If you did go forward, what
factors would you consider and how might you avoid some of the mistakes
made by Prada?