1. To make a decision on whether or not upgrading ZARA’s POS systems, we should fully consider the merits and demerits of the plan from all aspects.
A. We agree that the company should upgrade its POS system, but it also need to consider a matter of timing. Although the present POS system running stably, efficiently, and has a low operating cost, it doesn’t keep pace with the trend from the technological perspective. Also, its function is simple and has no support from the Microsoft. What’s more, the system is facing a risk that its software will be incompatible with the new hardware. However, if ZARA upgrades the POS system, they will spend time testing and adapting the new one.
In the long term, ZARA needs to upgrade the POS terminals. At present, the company should maintain relationship with the hardware provider and prepare to adopt a new system. And remember to make a specific plan for the upgrade.
B. We think the company should build in-store networks. There are two major reasons. Firstly, to build in-store networks can save manpower resource. The modem-equipped terminal can be very useful for employees to count the stock. It is in line with the company's philosophy of “fast” and the cost leadership strategy. Secondly, when building the in-store networks, the POS terminals could accommodate even more sophisticated capabilities. Generally speaking, building in-store
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