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Business Model Competition M&S vs. ZARA. 指導教授:葉誌崇 學  生:蘇芳瑢 溫啟宏 日  期: 2006/10/31. Classic textile Business Process : 12 month lead time. Purchase Raw Mat. Discount (On Sale). Design. Mfg. Dist. Sell. Classic textile Business Process : 12 month lead time.

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business model competition m s vs zara

Business Model CompetitionM&S vs. ZARA

指導教授:葉誌崇

學  生:蘇芳瑢

溫啟宏

日  期:2006/10/31

classic textile business process 12 month lead time
Classic textile Business Process:12 month lead time

Purchase

Raw Mat

Discount

(On Sale)

Design

Mfg

Dist

Sell

classic textile business process 12 month lead time1
Classic textile Business Process:12 month lead time
  • 傳統服飾門市在每一季的前置作業

51天

構思服飾類別的概念、布料的挑選

16天

剪報設計概念和尋求意見

31天

採購計畫批准及布料訂購

46天

布料測試及、實驗室浸泡等等

56天

原型開發、等待批准、確認價格

51天

服飾零售商訂貨單各尺寸樣品

91天

生產條碼包裝

5天

出貨

why is profitability in textile so low when margins are so high
Why is profitability in textile so low, when margins are so high?

Perfect forecast:

Does not exist in real life!

Excess stock:

Value loss due to discount sales when actual demand is lower than expected

Excess demand:

Value loss due to unrealized sales when actual demand is higher than expected

Waste!Expected DemandActual Demand

introduction zara
Introduction:ZARA
  • ZARA

成立於1985年,隸屬於Inditex集團為全球排名第三、西

班牙排名第一的服裝零售商, 目前在歐洲27個國家及世

界55個國家,開了2200家連鎖店。

2004年度全球營收額達46億歐元(約新台幣1600億元),

Zara的品牌價值在全球排名 77名。

  • 經營模式:

一流的設計、二流的面料、三流的價格

超速經營、少量多樣、製販一體

  • http://www.zara.com/i06/index.html
  • http://www.chanel.com/
the zara wins in the speed to conduct
The ZARA wins in the speed to conduct

ZARA 在每一季的平均前置作業時間 (24天)

1天

設計風格概念、價格和品質

1天

布料的調度

3天

設計

1天

設計獲得批准

3天

設計原型、樣品批准

生產

10天

出貨

5天

zara business concept
ZARA Business Concept

“Integrated” fashion delivery:

Fashion at low cost!!!

  • Low Cost
  • Fashion
  • Get it approximately right
  • Reduce creative design
  • Define a fast-response process incl

design

  • Finalize design knowing material

supply constraint

  • Optimize the process
  • Manage follow-up (next batch) and

customer flows

  • Store experience
  • Copy fashion
  • Involve the customers

and his group / cohort

  • Create a network / brand
zara customer offer lean and focused
ZARA Customer Offer: Lean and Focused

“Fresh / Fast”

“Quality”

Cost

  • Fast copying of leading styles
  • Fast delivery in own stores
  • Limited editions
  • Raw material: medium
  • Knit: poor
  • Look: grand!
  • Customer satisfaction:

fashion at low price!

  • Low monetary cost
  • Low time cost: “the Zara experience”
lean production
Lean Production
  • 開發者:TOYOTA
  • 與1920年代的大量生產方式 (Mass

production)有所區別,以突顯其在少量生產方

式上的不同

  • 核心要素:

1. 彈性生產組織

2. 零缺點製造過程

3. 降低庫存

4. 製造商供應商經銷商長久緊密合作關係

zara customer offer lean and focused1
ZARA Customer Offer: Lean and Focused

Flexibility: - / +

  • Limited customer variety: only what is on display and in limited choices
  • But every customer is participating in the process: help determine the next batch
waste elimination at zara
Waste elimination at ZARA
  • Advertising

eliminated for not necessary in a « pull » model; too slow anyway and our offer is localized

  • Discount Sales:

eliminated through quick response &

the strategy that we are always

“below” demand

waste elimination at zara1
Waste elimination at ZARA
  • Design

largely out-sourced to the “market” and replaced by active scanning – greatly facilitates a “process-based organization”

  • Product complexity

3 types, sizes, and colors greatly reduces the product complexity, allows us to operate with

reduced inventories and working capital –with

little loss in customer value

zara business process in full one week lead time
ZARA Business Process in full:One week lead time!!!

Step 1:

Scan

Designers PULL next RM batch

Step 2:

Simplify hits &

produce library

of designs

Purchase RM

Step 3:

Final Design

Of next batch

Mfg

Dist

Shopping

experience

Shopper (and store mgers)

PULL next design (shape) &

Designers adapt

why is profitability at zara so high when margins are so low
Why is profitability at ZARA so high, when margins are so low?

Excess stock and unmet demand

Zara as a

“Lean Enterprise”

Expected Demand

Actual

Demand

Small batches

zara is the dell of the dress industry
ZARA is the DELL of the dress industry
  • 活用IT設備

利用統計技術與網路,將每家分店的客戶身份、喜

好、熱賣款彙集後傳回總部,再由總部配合當季流

行趨勢,加以評估,從原料開始,規劃出最符合市

場價值與利潤的商品樣式。

  • 物流配送

堅持不走低成本的海運物流,主要就是為了爭取上

市時間

all powerful of dell
Traditional SCM

Dell SCM

All-powerful of Dell

Supplier

Supplier

Manufacturer

Dell

Agent

Retailer

Consumer

Consumer

comparing with dell supply chain 2 day lead time
Comparing with Dell Supply Chain: 2 daylead time

Customers

<<pull>> RM

Re supply

Step 1:

Scan

Comps

Supply

Simplify &

design new

product offer

Sell

Pick

Comps

<<Mfg>>

(Assembly)

Dist

Customers

Select

Customers <<pull>>

product & supply chain

adapts

introduction m s
Introduction:M&S
  • M&S (Marks & Spencer Group PLC)

於1894年在英國成立的百貨公司,主要銷售服飾與食品,在20世紀有段很長的時間,是英國最大的零售商,也是代表性的企業之一

  • 經營理念:優質貨品、合理價錢、摯誠服務、

創意及信心保證

  • 現存危機:存貨控制、定價與行銷方面的錯誤

、法律訴訟案件

industrialization strategic value gained from positioning
Industrialization: Strategic value gained from positioning

Product Offer

High customization

Low volume

High unit margin

High quality

High standardization

High volume

Low unit margin

Low quality

Supply Process

Flexible Process

Rigid Process

industrialization redefinition of classic industry trade offs
Industrialization:redefinition of classic industry trade-offs

Product Offer

Supply Process

Low customization

High customization

Medium customization

Manual shop

Batch flow

Continuous flow

auto industry dynamics the long road to mass customization
Auto Industry Dynamics: the long road to mass customization!!!

High custom

High unit margin

Low volume

Low custom

Low unit margin

High volume

Product

Process

Flexible shop

Rigid

flow

  • .
  • .
  • .
  • .
industrial process life cycle
Industrial Process life Cycle
  • Phase1: Result of many years of experience LEARNING and PROBING with an innovative formula
  • Phase2: DEFINING the Zara process & IMPROVING process performance
  • Phase3: Process improvement becomes more difficult & LIMITS TO IMPROVEMENT APPEAR
  • Phase4: Innovation then continues at the INTERFACE (shopping experience, internet, …)
  • Phase5: Process eventually OVERTAKEN( but when?)
disruptive technological change 1 setup
Disruptive technological change 1: Setup

Performance:

M&S quality

(RM, cut, fit, variety)

Time

disruptive technological change 2 disruption
Disruptive technological change 2:disruption

ZARA

Performance:

ZARA quality

(<<freshness>>)

M&S

M&S is overtaken

by a technology

they consider

<<inferior>> to

theirs!!!

Time

conclusion
Conclusion
  • All types of innovation

* Technology innovators

* Business model innovators

* Process innovators

“ZARA is a innovative company”