How did Zara integrate its various operations around the world?

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The Answer is Zara has vertically integrated design, production, distribution, and retail sales. It has a large, anonymous design team in its headquarters in Spain. Zara believes in democratized fashion, which is largely driven by customers. Zara's store staff and managers identify popular styles and send information to the design team frequently. Zara's manufacturing facilities are mostly located in Spain. Owning plants and equipment allows Zara to directly control the manufacturing process. It only buys fabric from nearby suppliers to ensure on-demand supply. Zara's own facilities mainly perform high-cost and high-skill tasks, and minor labor-intensive processes in nearby workshops. Thus, Zara is able to produce the trendiest clothes within two to three weeks. Zara also has a state-of-the-art distribution system. Its main distribution center is connected to nearby factories with tunnels and ceiling rails. Advanced devices and systems are used to make its global distribution fast and flexible. In terms of sales, Zara's main approach to attract shoppers by opening up stores in prominent locations, constantly updating store designs, and supplying stores with differentiated new designs. To link these functions, Zara has developed sophisticated information systems, such as microprocessor-based tagging and real-time store information. The company also has a horizontal and flexible organizational structure that encourages employees to participate in identifying fashion trends and customer needs. Conversation and collaboration are stressed to facilitate bottom-up and crossfunction communications.

How Did Zara Integrate Its Various Operations Around the World