Zara-and-Sears-Agility-and-Myopia organization

Zara-and-Sears-Agility-and-Myopia organization

1. Zara and Sears: A
Tale of Agility and
Myopia
This presentation will explore the contrasting business approaches of
Zara and Sears. Zara's agile strategy thrived in the face of change, while
Sears' myopic vision led to decline.
peter Samir Maher
ID:22231035175

2. Zara: The Agile Retail
Giant
1Fast Fashion
Pioneer
Zara is a global leader in fast
fashion, constantly adapting
to trends and introducing
new designs.
2Vertical Integration
Zara controls its design,
production, and distribution,
enabling rapid response to
market demands.
3Customer-Centric
Approach
Zara prioritizes customer
feedback and incorporates
it into its design and
production processes.
4Sustainable
Practices
Zara is actively working
towards more sustainable
practices, reducing its
environmental impact.

3. Zara's Rapid Response to Market
Trends
1
Trend Analysis
Zara's design teams constantly monitor fashion trends and customer
preferences.
2
Rapid Prototyping
Zara's designers create prototypes quickly and efficiently to test new designs.
3
Production & Distribution
Zara's factories are highly efficient and can quickly produce and distribute new
styles.
4
In-Store Availability
New designs are available in stores within weeks of creation, ensuring
immediate access for customers.

4. Zara's Streamlined Supply Chain
Vertical Integration
Zara controls most stages of the
supply chain, from design to
production and distribution.
Decentralized Production
Zara has numerous factories
worldwide, allowing for flexibility and
responsiveness to regional demands.
Just-in-Time Inventory
Zara only produces small batches of
each style, ensuring freshness and
minimal inventory waste.

5. Zara's Decentralized
Decision-Making
Store Managers
Store managers have significant autonomy to adapt
merchandise to local customer preferences.
Regional Offices
Regional offices gather market intelligence and provide
feedback to the central design team.
Central Design Team
The central design team creates new designs and oversees
the overall production process.

6. Sears: The Myopic Retail
Dinosaur
Slow to Adapt
Sears was slow to embrace e-
commerce and failed to keep
up with changing customer
preferences.
Outdated Business
Model
Sears relied on a traditional
brick-and-mortar model that
was no longer sustainable.
Poor Customer
Service
Sears' customer service was
often inadequate and failed to
meet customer expectations.
Financial
Mismanagement
Sears suffered from a series of
poor financial decisions that
led to its decline.

7. Sears' Failure to Adapt to E-
commerce
E-commerce Adoption Sears was slow to embrace online
shopping, failing to capitalize on the
growing trend of online retail.
Website Functionality Sears' website was outdated and
difficult to use, discouraging
customers from making online
purchases.
Customer Experience Sears' online customer experience
was poor, with limited options for
product information and support.
Lack of Innovation Sears failed to innovate and
introduce new digital services to
enhance the customer experience.

8. Lessons Learned: Embracing
Agility in a Changing Retail
Landscape
Speed and Agility
Businesses must be able to adapt quickly
to changing market conditions and
consumer preferences.
Customer Focus
Understanding customer needs and
preferences is essential for success in the
modern retail landscape.
Innovation and Technology
Embracing technology and innovation is
crucial for staying competitive and
attracting customers.
Strategic Planning
Businesses must have a clear vision and
strategic plan to guide their growth and
development.

9. Conclusion: The
Importance of
Adaptability in Business
Zara's success demonstrates the importance of adaptability in a rapidly
changing business environment. By embracing agility and staying ahead
of trends, businesses can thrive and achieve long-term success.