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Does Having Technology in a Business Enhance or Hurt the Their Chances for Success?

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Does Having Technology in a Business Enhance or Hurt the Their Chances for Success?

Zara Case Study.

Since it was founded in 1975, Zara has grown to be one of the most successful fashion retail brands in the world. Computing has been one of the major ingredients of its growth. Use of technology as will be discussed enhances the outcome of a business.

In the early years of operation, Zara group introduced what they called “fast fashion”. This was a new design, manufacturing and distribution process that reduced the time it took a new design to reach the final consumer which was driven by massive investments in information technology. (“The Secret of Zara’s Success”). This saw an increase in overall sales and more designs being released over a short period of time thus more profits. Another instance is mobile commerce.

Zara has not been left behind on the mobile commerce front. Since the inception of their online store, they have realized a rise in their online sales. According to the secret of Zara’s success journal, different market analysis point towards a scenario where online sales will overtake conventional sales. Digital data collection is another example Zara group has embraced technology to enhance business.

Thanks to the implementation of the RFID (radio frequency identification) tags technology, data is collected more efficiently. These tags enable faster operations and communication between stores and the headquarters. (Giulia and Chiara 4).

In conclusion, technology in business undoubtedly enhances a business’s outcome. By incorporating the fast fashion model, creating the online shop and use of the radio tags has proved to be beneficial to the way Zara conducts business.

 

 

 

 

 

 

 

 

 

 

 

 

 

Works Cited

Giulia, Catena, and Fiorini Chiara. Zara Internationalization Strategy. p. 12.

“The Secret of Zara’s Success: A Culture of Customer Co-Creation.” Martin Roll, 18 Mar. 2018, https://martinroll.com/resources/articles/strategy/the-secret-of-zaras-success-a-culture-of-customer-co-creation/.

 

 

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