COMDIPUNT: ZARA'S FRENCH FOREIGN LEGION
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COMDIPUNT: ZARA’S FRENCH FOREIGN LEGION
ZARA • August 2004. Madonna starts her World Tour in Barcelona. She will offer three concerts in the Olympic Stadium. • On Monday she appears on stage with a miniskirt designed by Jean Paul Gaultier. She has a huge success. • On Wednesday she repeats her concert. Another huge success.
ZARA
• On Friday she’s back on stage but she looks
shocked: in front of her hundreds of fans are
wearing the exact same miniskirt. Zara had done it
again: in just four days they had been able to ….
“Get inspired”
Manufacture
and deliver the miniskirts to their stores
The making of a legionnaire
First Blood • Inditex first order: a few thousand T-Shirts. • 100% rejected! • It’s all a question of necks.
Jumping on board • Joins Inditex • Responsible for the launching of Bershka.
Success and independence
The right stuff • “No engineers” • Quality • Fast, agile, nimble • No red tape, no silly rules • Hard Work, survival of the fittest, adaptation
The Legion’s way • Selection of new recruits. • Is it all about making money? • Internal alignment. • Specialized units. • A different way to wage war
The Legion’s way • Selection of new suppliers. • Is it all about making money? • Internal alignment. • Dedicated flows. • A different way to compete
The Legion’s way • Selection of new recruits.
The Legion’s way • Is it all about making money?
The Legion’s way
• Is it all about making money?
– Salary
– Values
– Talent
– Brand
– Social Responsibility
Source: Pau Cardona, IESEThe Legion’s way
• Is it all about making money?
– Salary
– Values
• They avoid misfit
• We end up working in places we believe in
• NO shortcuts. The role of history.The Legion’s way • Is it all about making money? – Salary – Values – Talent
The Legion’s way
• Is it all about making money?
– Salary
We want to
– Values be part of a
– Talent winning
• Some of us have to carry the piano teamThe Legion’s way
• Is it all about making money?
– Salary
– Values
– Talent
• Some of us have to carry the piano
• Hard work and trainingThe Legion’s way
• Is it all about making money?
– Salary
– Values
– Talent
• Some of us have to carry the piano
• Hard work and training
• Talent = APTITUDE * ATTITUDE (WHAT YOU KNOW
AND WHAT YOU WANT)
A LEGIONNAIRE IS WORTH A 100 ENNEMIESThe Legion’s way
• Is it all about making
money?
– Salary
– Values
– Talent
– Brand
• Esprit de corpsThe Legion’s way
• Is it all about making
money?
– Salary
– Values
– Talent
– Brand
• Esprit de corps
• Ironing of shirtsThe Legion’s way
• Is it all about making
money?
– Salary
– Values
– Talent
– Brand
• Esprit de corps
• Ironing of shirts
• Képi blanc, épaulettes,
ceinture bleueThe Legion’s way • Is it all about making money?
The Legion’s way
• Is it all about making money?
– Salary
– Values
– Talent
– Brand
– Social Responsibility
“Corporate responsibility is above all
about winning”, Jack Welch, 2008.The Legion’s way
• Is it all about making money?
– Extrinsic motivation (money, food, ..).
– Intrinsic motivation (learning, fit)
– Transcendental motivation (France, buddies).
• Sense of mission, Meaning
• Never spontaneous
• Real leadershipThe Legion’s way • Internal alignment.
The Legion’s way
The Legion’s way
The Legion’s way
The Legion’s way • Internal alignment.
The Legion’s way • Specialized units.
May 1942. Bir Hacheim: A legend
is born
General Marshal Erwin J. E. Rommel
Lieutenant
Colonel Prince
Dimitri AmilakvariBir Hacheim: A legend is born
Il reste que contre les troupes de Rommel, le box
britannique de Goot el-Oualeb avait tenu deux
jours, et Bir Hacheim quinze.
A German Lieutenant described the 25 officers and 820
George Blond, “Histoire de
men captured atlaBir
Légion Étrangère”,
Hacheim p.423Spaniards, Swiss,
as “Red
Czechs, and Poles – riff-raff of the worts kind”. Only 10
percent were French.
Hitler ordered that any German political refugees
captured in Bir Hacheim were to be executed.
To his everlasting credit, Rommel incinerated the order
and refused to comply.
Douglas Porch, “Hitler’s Mediterranean Gamble”, p.272A legend is born
A legend is born
A legend is born
A legend is born
A legend is born
The Baltic Campaign
The Baltic Campaign
Let’s face it: suppliers can be
dangerous…What about GM?
Parts manufacturing outsourced
GM-Daewoo’s Chevrolet Spark China’s Chery QQ
Made in China 3600$
4600$ Sales Jan-Jul 2005: 62000 units
Sales Jan-Jul 2005: 16000 unitsVertical Industry Structure
with Integral Product Architecture
Computer Industry Structure, 1975-85
IBM DEC BUNCH
Microprocessors
All Products
All Products
All Products
Operating Systems
Peripherals
Applications Software
Network Services
Assembled Hardware
(A. Grove, Intel; and Farrell, Hunter & Saloner, Stanford)
Source: C.FineThe Double Helix: Charlie
Fine’s theory
INTEGRAL PRODUCT
NICHE VERTICAL INDUSTRY
COMPETITORS PROPRIETARY STANDARDS
HIGH-
DIMENSIONAL
COMPLEXITY
Source: Fine & Whitney, “Is the Make/Buy Decision Process a Core Competence?”The Double Helix: Charlie
Fine’s theory
INTEGRAL PRODUCT
NICHE VERTICAL INDUSTRY
COMPETITORS PROPRIETARY STANDARDS
HIGH-
DIMENSIONAL
COMPLEXITY
ORGANIZATIONAL
RIGIDITIESThe Double Helix: Charlie
Fine’s theory
INTEGRAL PRODUCT
NICHE VERTICAL INDUSTRY
COMPETITORS PROPRIETARY STANDARDS
HIGH-
DIMENSIONAL
COMPLEXITY
ORGANIZATIONAL PRESSURE TO
RIGIDITIES DIS-INTEGRATE1981: a date to remember • IBM enters the micro-computer market – Sourced from outside component suppliers – Open architecture Æ Faster innovation • Competitors build a machine that duplicates the IBM PC as closely as possible and sell it for a slightly lower price, or with higher performance
Horizontal Industry Structure
with Modular Product Architecture
Computer Industry Structure, 1985-95
Microprocessors Intel
Intel Mac
Moto TI etc
AMD etc
Operating Systems Microsoft Mac Unix
Peripherals IntelEpson Mac TIetc etcetc
HP Seagate
Applications Software
Microsoft Lotus Novell etc
Network Services
AOL/Netscape Microsoft EDS etc
etc
Assembled Hardware
HP Compaq IBM Dell etc
etc
(A. Grove, Intel; and Farrell, Hunter & Saloner, Stanford)
Source: C. FineThe Double Helix: Charlie
Fine’s theory
INTEGRAL PRODUCT MODULAR PRODUCT
NICHE VERTICAL INDUSTRY HORIZONTAL INDUSTRY
COMPETITORS PROPRIETARY STANDARDS OPEN STANDARDS
TECHNICAL
ADVANCES
HIGH-
DIMENSIONAL SUPPLIER
COMPLEXITY MARKET
POWER
PRESSURE TO INCENTIVE TO
ORGANIZATIONAL DIS-INTEGRATE INTEGRATE
RIGIDITIES PROPRIETARY
SYSTEM
PROFITABILITY
Source: Fine & Whitney, “Is the Make/Buy Decision Process a Core Competence?”Le cafard
La Légion: critical to keep it at
leashA New Project
A New Project
Friday’s Project
With friends like this … (Fornarina
said)Business Development and Fine-
tuning
• The 50-25-25 ruleBusiness Development and Fine-
tuning
• The 50-25-25 rule
• Franchising
• Corners: DRP
• PurchasingFirst Blow: November 2007
La Légion réagit • Multi-brand • Cost and volume
From 5000 down to 3000 meters
Are we colliding?
Can La Légion be a real threat?
La Légion’s new roles
La Légion’s new roles
La Légion’s new roles
THE BARBARIANS ARE AT THE
GATE!LÉGIONNAIRES AUX RAMPARTS!
Back to the fighting
Back to Paradise
Crisis: 危机
Crisis: 危机 Threat; Danger
Crisis: 危机
Threat;
Danger Chance;
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