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 thelaunching 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, IESE
The 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– Values– Talent
• Some of us have to carry the piano
We want to be part of a
winning team
The Legion’s way
• Is it all about making money?– Salary– Values– Talent
• Some of us have to carry the piano• Hard work and training
The 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 ENNEMIES
The Legion’s way
• Is it all about making money?– Salary– Values– Talent– Brand
• Esprit de corps
The Legion’s way
• Is it all about making money?– Salary– Values– Talent– Brand
• Esprit de corps• Ironing of shirts
The Legion’s way
• Is it all about making money?– Salary– Values– Talent– Brand
• Esprit de corps• Ironing of shirts• Képi blanc, épaulettes,
ceinture bleue
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
“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 leadership
The 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 legendis born
General Marshal Erwin J. E. Rommel
Lieutenant Colonel Prince Dimitri Amilakvari
Bir Hacheim: A legend is born
A German Lieutenant described the 25 officers and 820 men captured at Bir Hacheim as “Red Spaniards, Swiss, Czechs, and Poles – riff-raff of the worts kind”. Only 10
percent were French.
Hitler ordered that any German political refugeescaptured in Bir Hacheim were to be executed.
To his everlasting credit, Rommel incinerated the orderand refused to comply.
Douglas Porch, “Hitler’s Mediterranean Gamble”, p.272
Il reste que contre les troupes de Rommel, le box britannique de Goot el-Oualeb avait tenu deux jours, et Bir Hacheim quinze.
George Blond, “Histoire de la Légion Étrangère”, p.423
A 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?
GM-Daewoo’s Chevrolet SparkMade in China
4600$Sales Jan-Jul 2005: 16000 units
Parts manufacturing outsourced
China’s Chery QQ3600$
Sales Jan-Jul 2005: 62000 units
Vertical Industry Structurewith Integral Product Architecture
Computer Industry Structure, 1975-85
IBM DEC BUNCHMicroprocessors
Operating Systems
Peripherals
Applications Software
Network Services
Assembled Hardware
All P
roducts
All P
roducts
All P
roducts
(A. Grove, Intel; and Farrell, Hunter & Saloner, Stanford)Source: C.Fine
INTEGRAL PRODUCTVERTICAL INDUSTRY
PROPRIETARY STANDARDS
HIGH-DIMENSIONALCOMPLEXITY
NICHE COMPETITORS
Source: Fine & Whitney, “Is the Make/Buy Decision Process a Core Competence?”
The Double Helix: Charlie Fine’s theory
INTEGRAL PRODUCTVERTICAL INDUSTRY
PROPRIETARY STANDARDS
HIGH-DIMENSIONALCOMPLEXITY
NICHE COMPETITORS
The Double Helix: Charlie Fine’s theory
ORGANIZATIONALRIGIDITIES
INTEGRAL PRODUCTVERTICAL INDUSTRY
PROPRIETARY STANDARDS
ORGANIZATIONALRIGIDITIES
HIGH-DIMENSIONALCOMPLEXITY
NICHE COMPETITORS
PRESSURE TO DIS-INTEGRATE
The Double Helix: Charlie Fine’s theory
1981: a date to remember
• IBM enters the micro-computer market– Sourced from outside component suppliers– Open architecture 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 Structurewith Modular Product Architecture
Computer Industry Structure, 1985-95
Microprocessors
Operating Systems
Peripherals
Applications Software
Network Services
Assembled Hardware
Intel Mac TI etc
Microsoft Mac Unix
HP Seagate etc
Intel Mac TI etcIntel Moto AMD etc
Epson etc
Microsoft Novelletc
Lotus
AOL/Netscape EDS etcMicrosoft
etcHP Dell etcIBMCompaq
etc
(A. Grove, Intel; and Farrell, Hunter & Saloner, Stanford)Source: C. Fine
PROPRIETARY SYSTEM
PROFITABILITY
SUPPLIERMARKET POWER
TECHNICAL ADVANCES
INTEGRAL PRODUCTVERTICAL INDUSTRY
PROPRIETARY STANDARDS
ORGANIZATIONALRIGIDITIES
HIGH-DIMENSIONALCOMPLEXITY
NICHE COMPETITORS
MODULAR PRODUCTHORIZONTAL INDUSTRY
OPEN STANDARDS
Source: Fine & Whitney, “Is the Make/Buy Decision Process a Core Competence?”
PRESSURE TO DIS-INTEGRATE
INCENTIVE TOINTEGRATE
The Double Helix: Charlie Fine’s theory
Le cafard
La Légion: critical to keep it at leash
A New Project
A New Project
Friday’s Project
With friends like this … (Fornarinasaid)
Business Development and Fine-tuning
• The 50-25-25 rule
Business Development and Fine-tuning
• The 50-25-25 rule
• Franchising
• Corners: DRP
• Purchasing
First 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;
Opportunity
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