Read chapter 3, “Zara: Fast Fashion from Savvy Systems,” in our text.
Answer the following questions in your own words. Clearly label each answer 1-3:
Describe Zara’s strategy/business model, focusing on 3-4 elements that differentiate Zara from competitors such as Gap and H&M in the retail fashion industry
Describe specific ways Zara uses information technology to enable the strategy/business model elements you identified above. Remember to consider not only the hardware and software used by Zara, but the information that is produced and how that information enables Zara’s decision making throughout its value chain (e.g., what products to offer, how much to manufacture, etc.)
Do you think Zara’s strategy/business model is succeeding? How do you know? Provide credible support for your position (e.g., financial data, operating metrics, industry analyst opinions). Use APA style to cite your sources. Note that the fiscal year of Inditex (Zara’s parent) ends January 31, so for financial data please ensure you use the latest time periods that are publicly reported. Hint: For financial data, look at year-over-year changes in income statement and balance sheet results over the course of three to five years.
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