Zara and information system technology

The increasing competition in clothing and Apparel industry has not shaken Zara so much. In that regard, several questions are abounding as to its survival tactics. However, there are evident strategic approaches used by Zara’s management to keep it ahead of the pack. Use of management information technology has been key it its success. Customer taste predictions and demand forecasts has been reliant on strategic market segmentation through information technology. It is worth to note that the customer base of Zara is significantly large and dominates the better parts of North America, Europe and parts of Asia.

Critical aspect of Zara’s survival tactics is attributed to strategic emphasis on information technology to track customer demands in this dynamic market. In various stores in North America, Spain, and other market segments, the staff constitute Personal Digital Assistants (PDAs) armed with mobile telecommunication gadgets to gather customer feedback and suggestions for relevant adjustments. This has seen Zara become proactive when it comes to customer’s changing tastes and preferences. Regular update of the customer’s data has yielded a demographic characterized by increasing United States, Mexico, Spain, and Taiwan among others.

 

Zara store in Cebu showcases the brand’s (http://manilastandardtoday.com/panel/_files/image/2014_april04_life1.jpg)

Online shopping introduced allows customers to choose from variety and even order customized products. Since the largest customer base of Zara products are in developed nations and emerging economies, it is obvious use of point-of-sale (POS) system gives important consumer behavior data. The innovative management information system that is reflected in customer base trend across the world is set to carry Zara through the mounting competitive pressure from new entrants and dynamic consumer needs.

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