Module 8: Zara Case Study Mind Map
Key Problems
Key Problem 1: Upgrade the POS system throughout the Zara value chain
Facts About Zara
The company has grown nearly 550 stores around the world
Half its market in France & Spain
The business model were developed according to great choice, short deadline, and quick response
Zara's fashion approach is different from the other retailers clothing companies
Zara supports autonomy by giving trust to its employees all over the company
The POS system considered old and need to upgrade
The POS system in Zara runs on DOS operating system which this OS is no longer supported by Microsoft
Must find a system that provides more functionality and convenience to Zara
Upgrading the system will be very risky because if any wrong, it will affect the global sales systems
Key Problem 2: Improve IT infrastructure by improving the lack of connection in the store network
The workers must copy daily sales totals from each terminal onto a floppy disk
lack and weakness in intra-communication
Could not connect personal handheld with other stores
Key Problem 3: Zara did not have a clear strategy about analyzing the data that will help to improve the business for future
weakness in tracking the inventory in each store
Zara could not have the ability to predict to what quantity should be selling for one or six months.
For Zara's approach in design, manufacturing, and fulfillment, Zara did not have a clear analysis strategy that help to forecasts for long-range sales
Zara could not guess the reflective commercials about increasing or decreasing the production
StakeHolders
Timeline
In 1963 Ortega started his clothing factories.
1985 Inditex formed as a holding company apart of Zara.
Zara was founded in 2003 by Ortega.
Jose Maria Castellano Rios joined the comapny in 1985 aswell.
2003 chat between Salgado and Sanchez over the current system using DOS and possible future upgrades
Sanchez
Possible Solutions
Another possible solution is to not upgrade the IT infrastructure and continue using the current system of DOS
Upgrade the pos system that Salgado is advocating for.
Salgado
pro
Con
Would allow for more IT functionality and better networking capabilitys.
Could mess up the entire process which some view as going very well.
Pros
Cons
The current system using DOS and has shown to be successful and would continue to bring in profits.
If the DOS system would no longer be supported this could make Zara unprepared resulting in more cost later down the road.
Vendors may no longer use the outdated software.
No big changes are occurring so business as usual will continue.
the application itself and communication between stores would be improved.
Would increase costs through the organization.
Zara stakeholders
IT at Zara
Managers
Employees
Castellano become the CEO of Inditex in 1997.
In 2003 Inditex has 1,558 stores in 45 countries.