Being a devoted customer at
Zara, it is greatly evident that they are at the top of the fashion chain. It is
rare when entering Zara that you see the same styles time and time again. This
approach to rapid turnover benefits them greatly. Customers feel they have to
purchase an item, even if they are unsure about it, knowing it will not be there the
next time they visit. However, the rapid turnover approach is also greatly
beneficial to the customer. Zara continuously sets the trend by showing
consumers the latest fashion in the market, you see a style on the runway and
within a few days it is on the clothing racks. Taylor, Fayol, and Weber's classical management approaches
are all relevant throughout Zara's retail operation.
Characteristics of Frederick
Taylor's theory are greatly shown throughout Zara. For example, Taylor's theory of
efficiency is shown throughout the ordering process. Store managers can reorder
popular items in less than an hour. Also, if a particular look or design is
unsuccessful, designers will quickly put together new merchandise. What makes
Zara even more efficient is their logistics operation through internalization.
Zara's parent company, Inditex
Group internalizes the supply chain as much as possible, which leads to "maximum
prosperity for the employer and the employee".
Additionally, Fayol's administrative principles are seen throughout the company. Coordination is greatly involved throughout the ordering and re-ordering process. Managers have great control in this area, they are aware of their customers wants and needs. Also, the company has great foresight in the fashion market. Inditex is continuing to prosper through Zara's profits. “The world’s largest clothing retailer, Zara owner Inditex, posted a 32 percent jump in first-half year profit on Wednesday, taking market share in its home market Spain and grabbing new customers online and in emerging markets.” [Rueters]
Not as relevant, but still apparent are Max Weber's bureaucratic beliefs in Zara's management. There is a clear process and procedural method when it comes to Zara's production. In regards to manufacturing the merchandise, whether it be cloth received from different distributors or Zara's own producer. Also, the designing and logistical departments each have their own individual tasks and processes on how to get merchandise to retailers as fast as possible.
Zara is continuously growing and is in the lead in terms of competition. "The emerging market expansion has allowed Inditex to grow faster than H&M and Gap Inc." [WSJ] Zara has taken globalization by storm, recently adding an e-commerce site as well as continuing to open stores in major cities and locations. "Inditex is adding stores in markets such as China as its domestic market faces its biggest economic crisis in decades. The company is also driving revenue growth by expanding sales via the Internet." [Bloomberg BusinessWeek]
I definitely agree with the fact that customers feel like they need to buy what they found because they can't be guaranteed to find the same item the next day, and even if they do find the same item the next day they probably won't be able to find their sizes. Alongside with that, like you mentioned, managers have great control over everything and anything, you can see managers emailing corporate one day and fixing the clothes the next day and downstairs in the stockroom checking inventory, so managers make sure that the store is on track and always at its best for customers.
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