The paper “ Zara’ s Product Management Process versus the New Products Process” is an actual example of a literature review on management. Some of Zara’ s success factors include effective information gathering, designs made on customer demand, excellent manufacturing and logistics, limited production runs, adoption of information technology, vertical integration, and inexpensive products. Detailed discussions of these factors are as follows: Information gatheringGallaugher (2008) argues that one of the success factors of the company is information gathering. Information gathering-the store managers lead the intelligence collecting information that identifies what should be in the store.
They use their handheld personal digital assistants (PDAs) to collect customer input, employees frequently engage customers in conversation in order to acquire information on what they want to see in the stores. The staff also collects information by analyzing unsold items to find out the customers’ preferences and disappointments, especially in terms of color, cloth, or styles. PDAs also connected to the Point-of-sale (POS) system in the stores, displaying the way garments’ level by sales. In a short time, store managers may transmit updates that blend hard information acquired from the cash register joined with customer insights on their needs.
Consequently, the firm can plan and issue purchase orders as per the customer feedbacks instead of guesswork and hunches. The aim here is to enhance the quality and frequency of making sense for the planning and design teams (Unique Business strategies 2005). Designs Here, the firm prefers making designs based on customer demand for fashion shows. Information regarding what customers want is directed to The Cube in La Coruna, where groups of 300 designers produce 30,000 items per year as compared to 2,000 to 4,000 products offered at the big firms including Gap and H& M (Gallaugher 2008). Whereas H& M offers lines by top designers like Karl Lagerfeld and Stella McCartney, and celebrity collaborations with Kylie Minogue and Madonna, the Zara design employees are mainly young, hungry Project Runway kinds of latest design from college.
The Cube lacks prima donnas. Team members should humble themselves in order to receive a reaction from workmates and share recognition for winning insights. Individual bonuses are connected to the accomplishment of the group, and groups are frequently rotated to share experience and motivate innovation (Schermerhorn 2010). Effective manufacturing and logisticsAs Gallaugher (2008) asserts, Zara has excelled in getting domestically targeted designs fast on the store shelves.
The minimum time it takes Zara's concept to evolve into an idea to the appearance in its stores is 15 days as compared to rivals who attain the latest once or twice per season. For example, if an adequate number of customers visit the stores and ask for a change in the design of a shirt, the new version can be acquired within just 10 days.
In fact, Zara is faster than Gap by fifteen times, in spite of providing about ten times more exceptional products. On the contrary, it takes H& M 3-5 times to move from manufacturing to delivery, and they are perceived as the best. In fact, other retailers require at least six months to design a new collection and another three months to produce it. Relatively, VF Corp may take nine months to design a pair of jeans, whereas, J. Jill requires a year to move from concept to delivery.
Nevertheless, Zara needs just three weeks to deliver customer demand (Gallaugher 2008).
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