Information Technology Management at ZARA Essay

Information Technology Management at ZARA - Essay Example This essay outlines that information technology is helping the company to manage queues inside the outlet, control inventory and handle POS-terminals (Point-of-Sale terminal). In addition, IT is playing the all important role in managing Zara’s online store. The report also uncovered that, with the use of information technology, the company has been able to achieve competitive advantage over its competitors. One of the key findings of the study is that, Zara is using outdated software. According to the technical lead of ZARA, the software may be outdates but is highly stable. However it has been identified that any changes in the system configuration by the hardware vendors may negatively impact the company’s POS terminal operation.   The study is about analysing the most important aspects of Zara’s approach to information technology management. Apart from that the report will also shed light on whether or not these approaches are applicable and appropriate anywhere in the organization. In order to satisfy these objectives, the study will carry out an in-depth analysis of the external business environment of Zara and a brief internal analysis of the company. However the focus will be mainly on the information technology management of the company. Based on the findings, the report will draw a conclusion and provide some recommendations regarding how to improve the productivity of the company. Nevertheless, before getting further deep into the study, a brief overview of Zara is presented below.   ... In order to satisfy these objectives, the study will carry out an in-depth analysis of the external business environment of Zara and a brief internal analysis of the company. However the focus will be mainly on the information technology management of the company. Based on the findings, the report will draw a conclusion and provide some recommendations regarding how to improve the productivity of the company. Nevertheless, before getting further deep into the study, a brief overview of Zara is presented below. ZARA: A brief Synopsis Zara is a Spanish company involved in manufacturing and marketing of clothing and accessories. The company is the sister concern of Inditex, which is one of the leading distribution groups of the world. Zara was founded by Amancio Ortega and Rosalia Mera in the year 1975. Presently it is headquartered at Arteixo, Spain. The first store of the company was opened in La Courna. Zara is considered to be one of the largest multinational fashion companies (Zara , 2010a). The major competitors of Zara in the global context are Uniqlo, H&M, Marks & Spencer and United Colors of Benetton. According to reports, the company owns 5,527 stores around the world. Apart from the store operations, it also operates through online platforms. The net sales value of the company in the year 2011 was 13,793, and the operating profit was 3,258 which reflect the company’s financial stability (Inditex, 2011). The company is best known for continuously developing and launching new products. The company comes up with a number of innovative designs each year, which helps them to compete in the market. According to the CEO of the company, Zara’s business idea is very much