Business Memorandum Zara

Business Memorandum--Zara

I. Background

Zara is the trendy, budget-conscious flagship brand of Inditex Group with 1, 360 stores in more than 65 countries and nearly 30 stores in the United States. The brand sells apparel for men, women, and children, and recently launched plus-size and maternity. The first store opened in Spain in 1975 by founder Amancio Ortega. Ortega had an objective that became transparent with Zara's expansion: offer cheap and chic fashions inspired by high-end trends on the runway. Zara is "possibly the most innovative and devastating retailer in the world," according to Danielle Piette, fashion director at Louis Vuitton. Zara's innovativeness is a result of a vertically integrated structure; the company designs, produces and distributes their own merchandise. The devastating nature of Zara's strategy is its effect on other retailers. The company produces nearly 10,000 items annually compared to the 4,000 items produced by competitors. Zara's short lead times allow new products to be developed in two weeks compared to the industry average of six months. Designs do not stay on the selling floor for more than four weeks, which encourages customers to purchase items quickly before they are no longer available.

Amancio Ortega is not only the founder of Zara, but also the Chairman of Inditex Group. Pablo Isla Alvarez de Tereja succeeded Jose Castellano as CEO of Zara International, Inc. in 2005. Carlos Mato Lopez serves as Director of Zara International, Inc. Zara's key retail competitors are H&M, Arcadia and French Connection.

II. Purpose

TD bank offeres convenience that other bank never did. But at the same time, while trying to be retail type bank, they do not offer full services like financial banks do. In order to satisfy all customer, business and non-business, the leading banks have separate lines in order to shorten waiting time. Unfortunatly, TD bank does not provide that convinience for their customers; and as a result many business customers just can not afford to wait in long lines and chose other banks that has separate business line. Time is money, especially for business people,and TD Bank should take that in consideration and start to offer separate business lines to gain success in today's competitive market.

III. Current Situation

TD bank, in such a short time, gained popularity on East Cost and became very succesful and trustful bank. Excellent customer service, "WOW" factor and long hours are became right tools to become America's most convenient bank..Competition among banks is pretty high and banks should provide all possible services for their customers in order to be competitive. Since consumers feel that time is becoming an increasingly scarcer resource, service organizations are also becoming increasingly sensitive to the economical and psychological costs which they impose on their clients in waiting lines. Customer s dislike waiting intensely. If they feel that they waiting too long in line to make a deposit or withdrawl

IV. 1.success and problem of comp future impact

2.what have now and how lead to problem

3.how having that feauture helps value of it,critical for bank to have it

4impact on customers in general

5. impact made in TD

6. advertisement to cust

Zara's prior success is a direct effect of short lead times, high turnover and understanding the needs of the targeted consumer; however, there are two problems that could postpone future developments in Zara's business. The lack of progression to Zara's e-commerce website and its policy to use no brand advertising impedes success in prospective markets and among competitors. A change is essential for Zara to preserve their position at the forefront of fast-fashion in the 21st century.

Zara's website is an interactive work in progress, offering a preview of the season's trends as well as videos featuring models in looks from the collection. The problem: the website does not offer customers the opportunity to purchase merchandise online.

The value of e-commerce as a channel of retail distribution has generated the growth of retailers, including the competition. E-commerce is a convenient and accessible marketing tool that is vital for a company's growth. It is critical for Zara to improve their website to maintain a competitive advantage and acquire potential markets internationally.

The customer would specifically benefit from the customer service and 24-hour availability of direct retailing. E-commerce would enable Zara to interact with the customer and instantly