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The objective of this research is general Zara supply chain, fast fashion, experience and compares Zara with H&M.

Extracts from this document...

Introduction

TABLE CONTENTS 1INTRODUCTION 1 PART A 2 1 HOW SUPPLY CHAIN EFFECTIVENESS DELIVERS STAKEHOLDER VALUE 2 2 FAST FASHION CONCEPT 4 3 KEY ELEMENTS OF THE ZARA PRODUCT AND EXPERIENCE OFFER 5 PART B COMPARATIVE ANALYSIS OF 8 4. COMPETITIVE STRATEGIES IN RETAIL 8 5 RETAIL VALUE EQUATION 10 6 RETAIL MARKETING MIX DESIGN 14 7 CONSUMER AND SEGMENTATION VARIABLES 17 APPENDIX 19 REFERENCE: 20 BIBLIOGRAPHY 23 1Introduction Zara is a Spanish fashion brand. It is the top of value worldwide. (Anon 2006) It is built in 1985. (Wen zhi chong, 2006.) Now Zara has stores in 68 countries and than 400 cities in Europe, the Americas, Asia and Africa. (Inditex, 2007) H&M is a Swedish Clothing company, also is fashionable clothing offerings. Today it has more than 1300 stores in 24 different countries and has more than 5000 employees. (Anon 2007) The objective of this research is general Zara supply chain, fast fashion, experience and compares Zara with H&M. Part A 1 How supply chain effectiveness delivers stakeholder value Supply chain management is the organization transformation of raw materials or products into finished goods and distribution to meet customer demand of all the business processes. (Cox.P&Brittain.P, 2004) 1.1 raw materials Zara manages purchasing and production in a highly flexible way. Managers can change decision and design of an existing product in one or two weeks. The company wants to create the highest level of freedom to act flexibly. They think that the purchasing source plays an important role in the whole company's supply chain. (Anon, 2006) Zara's management believes that this highly flexible way fits with their customers' taste and is much more efficient and profitable than lower operating costs. It makes more customers like Zara's fashion trends. (Anon, 2007) 1.2 manufacture Only half the Zara products are made in its own factories, the rest are not made in its own factories. ...read more.

Middle

H&M differs from Zara because they spend more money on advertising and are price-oriented. Zara chooses trendy clothing that they have designed based on the international level. However, H&M sells trendy cheaper styles. It uses more advertising to publicize its brand. Zara only uses the self business method to publicize. In the advertising cost, H&M has a higher advertising cost than Zara. Many of the customers have a deep impression of H&M. (Craig.A et.al, 2004) 5 Retail value equation Customers' consumption concept is changing. Today consumers have known the money and non-price traded off and moving into a new of value. Consumer's perception and propensity to purchase is affected by many factors, including product quality, choice and availability, convenient opening hours, good service, pleasant environment, money, time, effort, stress, risk. (In Focus, 2006) 5.1 choice and availability and time Zara has stores in 68 countries and than 400 cities in Europe, the Americas, Asia and Africa. In the future, Zara will continue to extent stores in the world(Inditex, 2007) H&M is a Swedish Clothing company, also is offering fashionable clothing. Today it has more than 1300 stores in 24 different countries. (Anon 2007) H&M's target is increase the number of stores by 10-15% per year. (Bruno Zavrsnik, 2006) In the UK, H&M and Zara are very famous stores. Many customers all know these two brands and are a recognized brand. (Anon, 2006) Both stores are very convenient for customers. In Europe, customers can go to Zara and H&M stores near where they live for buying products. In contact, customers do not need too much time to buy products. Today customers think that time also is a cost. 5.2 Good service and stress Source: http://images.google.co.uk/imgres?imgurl=http://www.novysmichov.eu/img/fotky_obchodu/37_DSC_0358.jpg&imgrefurl=http://www.novysmichov.eu/en/obchody/moda-pro-rodinu/zara_37&h=600&w=800&sz=98&hl=zh-CN&start=1&um=1&tbnid=PhwQFspRFhvzQM:&tbnh=107&tbnw=143&prev=/images%3Fq%3Dzara%2Bstore%2B%2Bmap%26um%3D1%26hl%3Dzh-CN%26sa%3DG.. VS Source: http://bbs.chuguo.cn/upload/LeoUsr/676/13/4b5_zara_1151907613.jpg From these two pictures, as can be seen, Zara uses the Free-flow layout for putting its products. Many fashion stores use a free-flow layout for encouraging customers appeal. ...read more.

Conclusion

Access at: [04th May 2008] Anon, 2006. Value sourcing-buy cheaper, better, faster. [Online]. Available at: http://www.foodinternational.net/articles/food-buying/484/value-sourcing-%96-buy-cheaper-better-faster-.html. Access at : [ 2nd May 2008] Anon, 2007. Can Zara keep up with speed chic? [Online]. Available at: http://wps.prenhall.com/bp_laudon_essbus_7/48/12303/3149771.cw/content/index.html. Access at: [02th May 2008] Anon, 2007. History of H&M. [Online]. Available at: http://www.historyofbranding.com/hm.html. Access at: [1st May 2008] Anon, 2006. Latest fashion news. [Online]. Available at: http://www.fashionunited.co.uk/news/inditex.htm. Access at: [30th April 2008] Anon, 2005.ZARA should they change their IT infrastructure to remain sustainable? [Online]. Available at: http://www.slashdoc.com/documents/49095. Access at: [03rd May 2008] Anon, 2006. Generic competitive strategies. [Online]. Available at: http://www.referenceforbusiness.com/management/Ex-Gov/Generic-Competitive-Strategies.html. Access at: [05th May 2008] Anon, 2006. Zara and H&M Marketing research. [Online]. Available at: http://bmelie.wordpress.com. Access at: [05th May 2008] Anon, 2006. The extended marketing mix (7Ps). [Online]. Available at: www.thetimes100.co.uk/downloads/theory/the_extended_marketing_mix_7ps.pdf. Access at: [09 th May 2008] Anon, 2007. New: H&M: A playful mix of styles or refined minimalism this Autumn. [Online]. Available at: http://www.designtaxi.com/news.jsp?id=9125&monthview=1&month=6&year=2007 Access at: [09 th May 2008] Anon, 2006. Services & capabilities. [Online]. Available at: http://www.hudsonmarshall.com/services.php. Access at: [09th May 2008] Bruno Zavrsnik. Critical Success Factors for International Fashion Retailers Entering Foreign Markets. [Online]. Available at: www.fibtex.lodz.pl/63_07_13.pdf. Access at: [08th May 2008] Craig.A, Jones.C, Nieto.M, 2004. Zara: Fashion Follower, industry leader. [Online]. Available at: www.philau.edu/sba/news/zarareport.pdf. Access at: [06th May 2008] Ferdows.K et al., 2005. Zara's Secret for Fast Fashion. [Online]. Available at: http://hbswk.hbs.edu/archive/4652.html. access at:[ 03rd May 2008] Forbes, 2007. Outsmarting smart shoppers. [Online]. Available at: http://www.forbes.com/entrepreneurs/2007/06/01/best-buy-retailing-ent-sales-cx_kw_0601wharton.html. access at: [03rd May 2008] Inditex, 2007. Our group. [Online]. Available at: http://www.inditex.com/en/who_we_are/our_group. Access at: [30th April 2008] In Focus, 2006. the new value equation in retail. [Online]. Available at: http://www.haynesandcompany.com/newvalueequation.html. Access at: [07th May 2008] Kerry Capell, 2006. H&M moves up with Madonna. [Online]. Available at: http://www.businessweek.com/globalbiz/content/dec2006/gb20061212_949380.htm?chan=globalbiz_special+report+--+the+european+bw+50_special+report+--+the+european+bw+50. Access at: [05th May 2008] Marketing teacher, 2000. Place, distribution, channel, or intermediary. [Online]. Available at: http://marketingteacher.com/Lessons/lesson_place.htm. Access at: [09th May, 2008] Rachel Tiplady, 2006. Zara: Taking the Lead in Fast-Fashion. [Online]. Available at: http://www.businessweek.com/globalbiz/content/apr2006/gb20060404_167078.htm. Access at: [05th May 2008] Tutor 2u, 2006. market segmentation-demographic segmentation.[Online]. Available at: http://tutor2u.net/business/marketing/segmentation_bases_demographic.asp. Access at: [08th May 2008] Wen zhi chong, 2006. Business Model Competition. [Online]. Available at: www.solvay.edu/PDF/cours/van%20der%20heyden/070330/Business-model-innovation-M&SvsZARA.pdf. ...read more.

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