H&m, benetton and zara essay

Jr and Hout, T. Annual reports. As a result, conventional-fashion player used to practice a push-strategy due to longer lead time needed to introduce a new design Palladino, ; Lee and Kincade, ; Slack, et al.

zara vs benetton

Whereas Benetton now send stock to its stores every two weeks, much less frequent than Zara but still quite often in comparison to its earlier practice of restocking stores every two months Andraski, The company use the two collections per year model and therefore make its stores order way in advance.

Stores are spacious and stylish with large areas being left empty and it is an informal policy of Zara to allow occasional stock-outs Ferdows et al. Dependability Zara wide span of vertical integration gives it unmatched dependability in supply chain, when expand globally, high dependability ensure that customers demand can be fulfil at the right time and right place Ghemawat and Nueno, ; for Benetton, dependability is reduce due to the usage of franchise in retail channel, Benetton use agent to contact with its franchisee and had low control over its franchisee' behaviour no formal agreement between Benetton and its franchiseesthe problem may become more serious when expanding to countries with huge cultural or language differences, delay in this tier of supply chain greatly reduce Benetton's' supply chain dependability Palladino, ; Ghezzi, The strategy of producing small batches of each design helps to keep the inventory levels at minimum and increase flexibility to customers demand.

Fast Vs. A central, Benetton-owned operation performs some manufacturing operations especially those requiring expensive technology and coordinates the more labor- intensive production activities that are performed by a network of smaller contractors often owned and managed by ex-Benetton employees.

Great Britain: Sage Publication Ltd. Now these small stores have been joined by several Benetton-owned and operated larger stores 1, to 3, square meters.

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A Study on Operation Management of Zara, Benetton and H&M