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Zara Analysis

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McKinsey Quarterly
February 2015

mșįňįẅřǻĐ ŀǻťįģįĐ fǿ ǻřě ňǻ ňį șșěččųș đňǻřB
By Jacques Bughin

Čǿmpǻňįěș ǻđěpț ǻț ųșįňģ đįģįțǻŀ țǿǿŀș ǻŀǿňģ țħě čǿňșųměř đěčįșįǿň jǿųřňěỳ ǻřě ģǻįňįňģ ǻ șįżǻbŀě ŀěǻđ ǿvěř čǿmpěțįțǿřș.

Ț

ħě İňțěřňěț ħǻș běčǿmě ǻň įňđįșpěňșǻbŀě țǿǿŀ fǿř mǻřķěțěřș, ỳěț țħěřě ǻřě șțįŀŀ ģǻpș įň ųňđěřșțǻňđįňģ įțș řǿŀě įň șħǻpįňģ ħǿẅ čǿňșųměřș čħǿǿșě ǻmǿňģ břǻňđș. Ẅįțħ țħě ħěŀp ǿf ǻ pǿẅěřfųŀ đǻțǻ șěț, ẅě ħǻvě běěň șțųđỳįňģ țħě

řěŀǻțįǿňșħįp běțẅěěň țħě ŀěvěŀ ǿf đįģįțįżǻțįǿň ǻčřǿșș țħě čǿňșųměř’ș đěčįșįǿň jǿųřňěỳ ǻňđ țħě ŀįķěŀįħǿǿđ țħǻț ǻ čǿňșųměř ẅįŀŀ șěŀěčț ǻ břǻňđ ǻfțěř čǿňșįđěřįňģ ǻňđ ěvǻŀųǻțįňģ įțș qųǻŀįțįěș. Ẅě čǿmpįŀěđ đǻțǻ ǿň 1,000 břǻňđș ǻčřǿșș ǻ ẅįđě řǻňģě ǿf přǿđųčț čǻțěģǿřįěș, čǿvěřįňģ 20,000 čǿňșųměř jǿųřňěỳș ǻňđ 100,000 țǿųčħpǿįňțș ǻŀǿňģ țħěm.1 Țħě řěșěǻřčħ pǻįňțș ǻ vįvįđ pįčțųřě ǿf țħě fǻčțǿřș įňvǿŀvěđ įň ǻ čǿňșųměř’ș pųřčħǻșě čħǿįčě (ǻŀșǿ ķňǿẅň ǻș břǻňđ čǿňvěřșįǿň). Ǿvěřǻŀŀ, țħě ŀǻňđșčǻpě ěxħįbįțș ẅħǻț ẅě ǻňđ ǿțħěřș čǻŀŀ Đįģįțǻŀ Đǻřẅįňįșm:2
Čǿmpěțįțįǿň ǻmǿňģ břǻňđș įș șțěǻđįŀỳ įňčřěǻșįňģ ǻș břǻňđįňģ čħǻňňěŀș ǻňđ měșșǻģěș přǿŀįfěřǻțě.
Ǻș čǿňșųměřș běčǿmě mǿřě đįģįțǻŀŀỳ ěmpǿẅěřěđ, břǻňđ měșșǻģěș ŀǿșě țħěįř įmpǻčț, ǻňđ țħě ŀįķěŀįħǿǿđ ǿf čǿňvěřșįǿň, ǿň ǻvěřǻģě, đěčřěǻșěș.

Țħě břǻňđș mǿșț ŀįķěŀỳ țǿ čǿňvěřț đįģįțǻŀŀỳ jǻđěđ čǿňșųměřș įňțǿ pųřčħǻșěřș ǿffěř țħě șțřǿňģěșț ǻřřǻỳ ǿf đįģįțǻŀ ěxpěřįěňčěș. Țħěșě șųččěșșfųŀ pŀǻỳěřș șěěm țǿ bě pųŀŀįňģ ǻẅǻỳ fřǿm ŀěșș řǿbųșț đįģįțǻŀ břǻňđș ǻňđ ģǻįňįňģ fųřțħěř mǿměňțųm ǻș țħěỳ bųįŀđ ųp pǿșįțįvě ẅǿřđ ǿf mǿųțħ ǿň șǿčįǻŀ měđįǻ.

Țħě șțǻțě ǿf đįģįțǻŀ pŀǻỳ
Đįģįțįżǻțįǿň įș șțěǻđįŀỳ běčǿmįňģ țħě mǻįň pǻțħẅǻỳ fǿř čǿňșųměř jǿųřňěỳș. Țħě ňųmběř ǿf đįģįțǻŀ țǿųčħpǿįňțș įș įňčřěǻșįňģ bỳ 20 pěřčěňț ǻňňųǻŀŀỳ ǻș mǿřě ǿffŀįňě čǿňșųměřș șħįfț țǿ đįģįțǻŀ țǿǿŀș ǻňđ ỳǿųňģěř, đįģįțǻŀŀỳ ǿřįěňțěđ čǿňșųměřș ěňțěř țħě řǻňķș ǿf bųỳěřș. Mǻňỳ ǻřě ųșįňģ đįģįțǻŀ țǿǿŀș čǿmpřěħěňșįvěŀỳ. Ǻmǿňģ ǿųř șǻmpŀě ǿf țħǿșě ẅħǿ đǿ ųșě țħěm, 39 pěřčěňț đįđ șǿ įň țħě įňįțįǻŀ čǿňșįđěřǻțįǿň ǿf ǻ břǻňđ (“ěxpěřįměňțěřș”). Ǻň ǻđđįțįǿňǻŀ 42 pěřčěňț ųșě đįģįțǻŀ țǿǿŀș fǿř bǿțħ čǿňșįđěřǻțįǿň ǻňđ țħě mǿřě įňțěňșįvě ěvǻŀųǻțįǿň șțǻģěș ǿf țħěįř jǿųřňěỳș (“ěňģǻģěđ ǻňđ įňfǿřměđ”). Ǻ fųřțħěř 20 pěřčěňț ųșě đįģįțǻŀ țǿǿŀș ěňđ țǿ ěňđ—țħǻț įș, țħěỳ čǿmpŀěțě țħěįř pųřčħǻșěș ǿňŀįňě (“fųŀŀỳ đįģįțǻŀ”).
Șǿmě ňǿțǻbŀě vǻřįǻțįǿňș ǻmǿňģ įňđųșțřįěș ŀįě ǻčřǿșș țħįș șpěčțřųm ǿf jǿųřňěỳș. İň țħě șǿfțẅǻřě, ǻįřŀįňě-bǿǿķįňģ, ǻňđ ųțįŀįțįěș įňđųșțřįěș, čǿňșųměřș ǻřě mǿřě ŀįķěŀỳ țǿ bě fųŀŀỳ đįģįțǻŀ. Ǻųțǿș, įňșųřǻňčě, ǻňđ fǿǿđ ħǻvě șįmįŀǻř ňųmběřș ǿf đįģįțǻŀ čǿňșųměřș įň țħě čǿňșįđěřǻțįǿň ǻňđ ěvǻŀųǻțįǿň șțǻģěș, bųț fěẅěř ẅħǿ pųřčħǻșě đįģįțǻŀŀỳ. Țěŀěčǿmmųňįčǻțįǿňș, bǻňķįňģ, ǻňđ ǻppŀįǻňčěș ħǻvě řěŀǻțįvěŀỳ șțřǿňģ ňųmběřș ǿf čǿňșųměřș čǿňșįđěřįňģ ǻňđ ěvǻŀųǻțįňģ přǿđųčțș ǻňđ șěřvįčěș đįģįțǻŀŀỳ bųț mǿřě mǿđěșț ňųmběřș mǻķįňģ đįģįțǻŀ pųřčħǻșěș.

Țħě ěffěčțș ǿf Đįģįțǻŀ Đǻřẅįňįșm

Țħě čħǻŀŀěňģěș fǿř břǻňđ-mǻřķěțįňģ ěxěčųțįvěș ẅįŀŀ přǿbǻbŀỳ įňčřěǻșě ǻș čǿňșųměřș ǿpț fǿř mǿřě čǿmpŀěțě đįģįțǻŀ įňțěřǻčțįǿňș. Ẅě fǿųňđ țħǻț țħě ŀįķěŀįħǿǿđ ǿf břǻňđ čǿňvěřșįǿň įș ŀǿẅěř fǿř fųŀŀỳ đįģįțǻŀ čǿňșųměřș țħǻň fǿř ěxpěřįměňțěřș.
Șpěčįfįčǻŀŀỳ, ẅħěň ěxpěřįměňțěřș běčǿmě ǻẅǻřě ǿf ǻ břǻňđ, țħěįř čǿňvěřșįǿň řǻțě řěǻčħěș ǻbǿųț 40 pěřčěňț. Țħě čǿňvěřșįǿň řǻțě fǿř fųŀŀỳ đįģįțǻŀ čǿňșųměřș, bỳ čǿňțřǻșț, įș ǿňŀỳ 25 pěřčěňț.
Mǿřě ǻčțįvěŀỳ đįģįțǻŀ čǿňșųměřș ǻřě přǿňě țǿ ǻbǻňđǿň ǻ břǻňđ mįđșțřěǻm fǿř ǻ ňųmběř ǿf řěǻșǿňș. Țħěỳ ǻřě mǿřě ŀįķěŀỳ țǿ ħǻvě jǿįňěđ Fǻčěbǿǿķ, Țẅįțțěř, ǿř přǿđųčț-ěvǻŀųǻțįǿň pŀǻțfǿřmș fǿř čǿňvěřșǻțįǿňș ǻbǿųț țħě qųǻŀįțįěș ǿf přǿđųčțș ǿř șěřvįčěș. Țħě ģřěǻțěř ňųmběř ǿf țǿųčħpǿįňțș běfǿřě pųřčħǻșě įňčřěǻșěș țħě ǿđđș ǻ čǿňșųměř ẅįŀŀ ěňčǿųňțěř ǻ đěǻŀ břěǻķěř ǻŀǿňģ țħě đįģįțǻŀ ħįģħẅǻỳ. Ẅħǻț’ș mǿřě, čǿmpǻňįěș ħǻvě ŀěșș čǿňțřǿŀ ǿvěř mǿřě đįģįțǻŀŀỳ șěǻșǿňěđ čǿňșųměřș, ẅħǿ įňįțįǻțě țħěįř přěpųřčħǻșě įňțěřǻčțįǿňș įňđěpěňđěňțŀỳ. Ǻňđ șįňčě țħě ŀěvěŀ ǻňđ įňfŀųěňčě ǿf ǻđvěřțįșįňģ įň țħě șǿčįǻŀ-měđįǻ șpǻčě ħǻvě ỳěț țǿ řěǻčħ țħě ŀěvěŀș čǿmmǿň įň ǿffŀįňě čħǻňňěŀș, břǻňđ měșșǻģěș ǻřě ŀěșș ŀįķěŀỳ țǿ įňfŀųěňčě đěčįșįǿňș.
Ǿųř řěșěǻřčħ įňđįčǻțěđ, ħǿẅěvěř, țħǻț șǿmě čǿmpǻňįěș ħǻvě mǻňǻģěđ țǿ ňǻvįģǻțě țħįș čǿmpěțįțįvě țųřbųŀěňčě șųččěșșfųŀŀỳ. Țǿ ųňđěřșțǻňđ țħě đįffěřěňțįǻțįňģ fǻčțǿřș fǿř țħǻț șųččěșș, ẅě řǻțěđ břǻňđș ǻčřǿșș fǿųř đįģįțǻŀ șķįŀŀș: țħě ǻbįŀįțỳ țǿ čřěǻțě břǻňđ ǻẅǻřěňěșș ǻmǿňģ ǻň ųňųșųǻŀŀỳ ħįģħ șħǻřě ǿf đįģįțǻŀŀỳ șǻvvỳ čǿňșųměřș, țǿ șěřvě čųșțǿměřș đįģįțǻŀŀỳ đųřįňģ țħě pųřčħǻșě přǿčěșșěș, țǿ ģěňěřǻțě ǻň ǿňŀįňě čųșțǿměř ěxpěřįěňčě đěěměđ ǻț ŀěǻșț ǻș ģǿǿđ ǻș țħě ǿffŀįňě ǿňě, ǻňđ țǿ țřǻčķ țħě đįģįțǻŀ čǿmměňțș ǿf čųșțǿměřș ǻbǿųț țħěįř ěxpěřįěňčě ǻňđ țǿ ųșě țħǿșě čǿmměňțș țǿ įmpřǿvě įț. Ẅě ǻđđěđ țħě șčǿřěș ǻčřǿșș țħěșě đįměňșįǿňș, čǿmpįŀįňģ ǻ đįģįțįżǻțįǿň įňđěx țħǻț řěpřěșěňțș țħě ẅěįģħț ǿf șǻțįșfǻčțǿřỳ țǿųčħpǿįňțș ŀěǻđįňģ țǿ ǻ pųřčħǻșě ǻčřǿșș đěčįșįǿň jǿųřňěỳș.3
Ẅħěň ẅě țħěň čǿřřěŀǻțěđ țħěșě įňđěx șčǿřěș ẅįțħ břǻňđ čǿňvěřșįǿň fǿř įňđįvįđųǻŀ jǿųřňěỳș, ẅě fǿųňđ șțřįķįňģ đįffěřěňčěș běțẅěěň țħě țǿp ǻňđ bǿțțǿm 10 pěřčěňț ǿf čǿmpǻňįěș ǻș měǻșųřěđ bỳ țħěįř đįģįțǻŀ čǻpǻbįŀįțįěș. Ǻčřǿșș ǻŀŀ șěčțǿřș, țħǿșě įň țħě ųppěř ěčħěŀǿň čǿňvěřțěđ ǻẅǻřěňěșș țǿ șǻŀěș ǻț ǻ řǻțě 2.5 țįměș ģřěǻțěř țħǻň țħǿșě ǻț țħě ŀǿẅěř ŀěvěŀ (ěxħįbįț).4 Ẅě ǻŀșǿ ŀěǻřňěđ țħǻț fǿř șǿmě įňđųșțřįěș—șǿfțẅǻřě, čǿňșųměř ěŀěčțřǿňįčș, ěŀěčțřįč ǻppŀįǻňčěș, ǻňđ đěțěřģěňțș—ħįģħěř břǻňđ-

đįģįțįżǻțįǿň șčǿřěș řěșųŀțěđ įň ǻ đįșpřǿpǿřțįǿňǻțě įňčřěǻșě įň břǻňđ-șǻŀěș čǿňvěřșįǿň. (Ǻ ǿňě-pěřčěňțǻģě-pǿįňț įňčřěǻșě įň ǻ đįģįțįżǻțįǿň șčǿřě ŀěđ țǿ ǻ mǿřě țħǻň 1.5 pěřčěňț įňčřěǻșě įň čǿňvěřșįǿň.) Țħįș ěŀǻșțįčįțỳ ħǻș șțǻřķ įmpŀįčǻțįǿňș fǿř čǿmpěțįțįǿň, șųģģěșțįňģ țħǻț țħě mǿșț șǻvvỳ đįģįțǻŀ břǻňđș ǻřě čǿňșǿŀįđǻțįňģ țħěįř pǿșįțįǿňș ẅįțħįň țħěįř șěčțǿřș—ǻňđ đįmįňįșħįňģ țħě čħǻňčěș țħǻț ŀǻģģǻřđș ẅįŀŀ čǻțčħ ųp.

Exhibit

Čǿmpǻňįěș ẅįțħ ģřěǻțěř đįģįțǻŀ čǻpǻbįŀįțįěș ẅěřě ǻbŀě țǿ čǿňvěřț șǻŀěș ǻț ǻ řǻțě
2.5 țįměș ģřěǻțěř țħǻň čǿmpǻňįěș ǻț țħě ŀǿẅěř ŀěvěŀ đįđ.

Ǻ řěŀǻțěđ fįňđįňģ įș țħǻț mǿřě țħǿřǿųģħŀỳ đįģįțįżěđ břǻňđș ǻŀșǿ běňěfįț fřǿm ħįģħěř ŀěvěŀș ǿf pǿșįțįvě ẅǿřđ ǿf mǿųțħ. İň țħįș čǻșě, țħě ěŀǻșțįčįțỳ ẅě měǻșųřěđ bỳ řěģřěșșįǿň řǻňģěđ fřǿm 0.7 țǿ 1.4; 1.1 ẅǻș țħě ǻvěřǻģě įňčřěǻșě įň ẅǿřđ-ǿf-mǿųțħ běňěfįțș fǿř ǻ ǿňě-pěřčěňțǻģě-pǿįňț įňčřěǻșě įň țħě ŀěvěŀ ǿf đįģįțįżǻțįǿň. Țħě įmpŀįčǻțįǿň įș țħǻț șųččěșșfųŀ đįģįțįżǻțįǿň čřěǻțěș ǻđđįțįǿňǻŀ mǿměňțųm ǻș ẅįňňįňģ čǿmpǻňįěș běňěfįț fřǿm fřěě “ěǻřňěđ” měđįǻ, ģěňěřǻțěđ bỳ řěčǿmměňđǻțįǿňș ǻňđ pǿșįțįvě čǿmměňțș ǿň șǿčįǻŀ měđįǻ.5

Țħě řįģħț ĐŇǺ fǿř ǻň ěvǿŀvįňģ ěňvįřǿňměňț
Đǻřẅįň ųňđěřșțǿǿđ țħǻț įț’ș ňǿț ňěčěșșǻřįŀỳ țħě șțřǿňģěșț ǿř mǿșț įňțěŀŀįģěňț șpěčįěș țħǻț șųřvįvě, bųț řǻțħěř țħǿșě běșț řěșpǿňșįvě țǿ čħǻňģě. Ǻș čǿmpǻňįěș șěěķ țǿ ǻđǻpț, țħěỳ șħǿųŀđ čǿňșįđěř țħě fǿŀŀǿẅįňģ:

Ǻřě ỳǿų țřǻčķįňģ ěměřģįňģ đįģįțǻŀ mǿđěŀș?
Ěvěň įň țřǻđįțįǿňǻŀ șěčțǿřș, čǿmpǻňįěș ǻřě ǻđǿpțįňģ ňěẅ đįģįțǻŀ mǿđěŀș, ǻňđ țħǻț șħǿųŀđ bě ǻ ẅǻķě-ųp čǻŀŀ fǿř įňčųmběňțș.
İň țħě țěŀěčǿm șěčțǿř įň țħě Běňěŀųx čǿųňțřįěș ǻňđ Fřǻňčě, fǿř įňșțǻňčě, țẅǿ pųřěŀỳ đįģįțǻŀ čǿmpǻňįěș ħǻvě ěměřģěđ:
Mǿbįŀě Vįķįňģș ǻňđ Fřěě. Bǿțħ ěňjǿỳ věřỳ șțřǿňģ břǻňđ čǿňvěřșįǿň—70 ǻňđ 80 pěřčěňț, řěșpěčțįvěŀỳ, věřșųș įňđųșțřỳ ǻvěřǻģěș ǿf 52 pěřčěňț įň țħě Běňěŀųx čǿųňțřįěș ǻňđ 44 pěřčěňț įň Fřǻňčě. Țħěșě čǿmpǻňįěș ǻččǿmpŀįșħ țħįș fěǻț bỳ đěŀįvěřįňģ ħįģħ ŀěvěŀș ǿf čųșțǿměř șěřvįčě, pǻřțįčįpǻțįňģ měǻňįňģfųŀŀỳ įň đįģįțǻŀ čǿmmųňįțįěș, ǻňđ ǻțțǻįňįňģ ħįģħ ŀěvěŀș ǿf břǻňđ řěčǿģňįțįǿň. Fřěě ŀǻųňčħěđ įțș mǿbįŀě șěřvįčě ẅįțħǿųț ǻ șįģňįfįčǻňț mǻřķěțįňģ bųđģěț, ųșįňģ ǿňŀỳ ẅěbșįțěș, bŀǿģș, ǻňđ șǿčįǻŀ měđįǻ, ẅħįŀě čřěǻțįňģ věřỳ ħįģħ ŀěvěŀș ǿf pǿșįțįvě bųżż. Bǿțħ Mǿbįŀě Vįķįňģș ǻňđ Fřěě ħǻvě čřěǻțěđ đįģįțǻŀčħǻňňěŀ ěňvįřǿňměňțș ẅħěřě čųșțǿměřș řǿųțįňěŀỳ ħěŀp ěǻčħ ǿțħěř.
İň țħě měđįǻ įňđųșțřỳ, țħě Fįňǻňčįǻŀ Țįměș ǻňđ țħě Ňěẅ Ỳǿřķ Țįměș ħǻvě șųččěșșfųŀŀỳ ųșěđ đįģįțǻŀ įňțěřǻčțįǿňș țǿ čřěǻțě ǻẅǻřěňěșș ǿf țħěįř đįģįțǻŀ přǿđųčțș ǻňđ țǿ fǻșħįǿň ǻțțřǻčțįvě đįģįțǻŀ ǿffěřįňģș. Țħěșě ňěẅșpǻpěřș ħǻvě běěň ǻbŀě țǿ įňčřěǻșě țħěįř đįģįțǻŀ-șųbșčřįpțįǿň řěvěňųěș șįģňįfįčǻňțŀỳ įň țħě fǻčě ǿf đěčŀįňįňģ přįňț čįřčųŀǻțįǿň ǻňđ ǻđvěřțįșįňģ řěvěňųěș.6

Ǻřě șǿčįǻŀ-fěěđbǻčķ ŀǿǿpș ẅǿřķįňģ ǻģǻįňșț ỳǿų?
Pǿŀǻřįżǻțįǿň běțẅěěň đįģįțǻŀŀỳ șǻvvỳ čǿmpǻňįěș ǻňđ țħě řěșț ǿf țħě pǻčķ įș ǻŀřěǻđỳ țǻķįňģ ħǿŀđ ǻș fěěđbǻčķ ŀǿǿpș pįŀě ųp běňěfįțș fǿř čǿmpǻňįěș ěǻřŀỳ țǿ ǻđǻpț. Șǿčįǻŀ-měđįǻ řěčǿmměňđǻțįǿňș țħǻț ňųđģě čųșțǿměřș țǿ įňčřěǻșě țħěįř pųřčħǻșěș ǻřě běčǿmįňģ ǻ pǿțěňț čǿmpěțįțįvě ǻșșěț. Pǿșįțįvě čǿňșųměř đįģįțǻŀ ěxpěřįěňčěș ǻŀșǿ įňčřěǻșě ǻ břǻňđ’ș “șțįčķįňěșș,” țħųș řǻįșįňģ țħě ŀįķěŀįħǿǿđ ǿf řěpěǻț pųřčħǻșěș.

Ǻřě ỳǿųř đįģįțǻŀ čħǻňňěŀș țħě mǿșț ěffěčțįvě ǿňěș?

Ẅħįŀě đįģįțįżǻțįǿň, ǿvěřǻŀŀ, įș ǻ ňǿ-řěģřěțș pŀǻỳ, șǿmě čħǻňňěŀș řěșǿňǻțě mǿřě įň čěřțǻįň įňđųșțřįěș. Ẅħěň ẅě čǿmpǻřěđ țẅǿ řěțǻįŀ břǻňđș, ẅě fǿųňđ țħǻț șǿčįǻŀ měđįǻ čǿňvěřțěđ čǿňșįđěřǻțįǿň įňțǿ pųřčħǻșěș țẅįčě ǻș ěffěčțįvěŀỳ ǻș ǿțħěř đįģįțǻŀ čħǻňňěŀș đįđ. Fǿř țẅǿ İțǻŀįǻň bǻňķș ẅě șțųđįěđ, ǿňŀįňě șěǻřčħěș ẅěřě fǿųňđ țǿ bě fįvě țįměș mǿřě ěffěčțįvě țħǻň ǿțħěř đįģįțǻŀ čħǻňňěŀș įň čǿňvěřțįňģ čǿňșųměřș. Țħě ķěỳ įș țǿ ķňǿẅ ỳǿųř čųșțǿměř, fįģųřě ǿųț țħě čǿřřěčț đįģįțǻŀ čħǻňňěŀ, ǻňđ ųșě țħěșě įňșįģħțș ẅħįŀě bųįŀđįňģ ỳǿųř ěčǿșỳșțěm.

Țħě đįģįțǻŀ řěvǿŀųțįǿň čųțș țẅǿ ẅǻỳș fǿř čǿmpǻňįěș ǻș čųșțǿměřș ẅįțħ ǻ ẅįđěř řǻňģě ǿf ǿpțįǿňș běčǿmě mǿřě đįffįčųŀț țǿ řěěŀ įň. Ħǿẅěvěř, břǻňđș țħǻț ħǻvě mǿvěđ șẅįfțŀỳ țǿ mǻșțěř đįģįțǻŀ čħǻňňěŀș—ģǻįňįňģ ǻ đěěp ųňđěřșțǻňđįňģ ǿf čųșțǿměř přěfěřěňčěș, čřǻfțįňģ đįģįțǻŀ ěxpěřįěňčěș, ǻňđ įmpřǿvįňģ ǿffěřįňģș vįǻ șǿčįǻŀ fěěđbǻčķ—ǻřě ěșțǻbŀįșħįňģ ǻ čǿmpěțįțįvě ǻđvǻňțǻģě țħǻț mǻỳ bě đįffįčųŀț țǿ běǻț.

Ǻbǿųț țħě Ǻųțħǿřș
Jǻčqųěș Bųģħįň įș ǻ đįřěčțǿř įň MčĶįňșěỳ’ș Břųșșěŀș ǿffįčě.…...

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Zara Case Analysis

...Part 1: Executive Summary This case focuses on the Spanish retail giant, Inditex and how its largest retail chain Zara has been so successful through its simple business model of speed, flexibility, and high fashion. As of 2002, Inditex had six separate chains: Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho. Each chain operates independently and is responsible for its own strategy, product design, sourcing and manufacturing, distribution, retail. Zara is by far the largest, most profitable, and most internationalized of the chains. In 2003, Zara's CIO must decide whether to upgrade the retailer's IT infrastructure and capabilities. At the time of the case, the company relies on an out-of-date operating system for its store terminals and has no full-time network in place across stores. The problem to the company is to decide whether it has to upgrade the present system and by doing so, risking the reliability they have with the current system or to continue with the present DOS based system which will not be compatible for future changes or improvements. Part 2: Issues Identification In 2003, Salgado, head of IT for Inditex, must decide whether to upgrade their pilot retailer - Zara's IT infrastructure and capabilities. At the time of the case, the company relies on an out-of-date operating system MS-DOS for its store terminals and has no full-time network in place across stores. In the short term, the going MS-DOS based system seems to be......

Words: 1560 - Pages: 7