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Because Zara’s core business model is vertically integrated, it could specialize in speed and efficiency and the fast fashion trend. By assessing the pros and cons of the new IT infrastructure with Zara’s brand image, they determined that implementing the new POS networking system is beneficial for Zara because 1) it creates a more robust and scalable system that is more responsive to Inditex’s supply chain network, 2) it removes the risk of the system becoming obsolete and no longer compatible with vendor’s machine upgrade, and 3) it helps to maintain and improve efficiency of decentralization because information flow can be improved between stores, DC, and plant...
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