ESCP Europe

In extremely high competitive environments like the fashion industry, globalisation, increasing supply and demand uncertainties and the pace of market changes combine the intensive search for improved customer service, reduced cost and the elusive target of greater agility. This book discusses first on the basis of a theoretical analysis how the Spanish garments retailer Zara - the worlds fastest growing clothing brand - faces these challenges with a close view at its unique supply chain management practices. Besides the conventional literature review, a different approach demonstrates how a business model can also be analysed by the application of the ''Systems Archetypes''. They are highly effective to understand patterns of organisations and the nature of underlying problems. Illustrated with causal loop diagrams they offer a basic structure, upon which a model can be further developed and are herewith very helpful and supportive in decision taking processes. To get an objective overview Zara''s main competitor - the Swedish company Hennes & Mauritz - is also investigated which has a far more common way of managing its business model.