Mango: Outsourcing of Non-core Activities to Keep up with Fashion

            
 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : OPER106 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

Business Strategy/ Business Environment

Case Length : 20 pages
Period : 1984-2012
Organization : Mango MNG Holding SL.
Pub Date : 2013
Teaching Note : Not Available
Countries : Spain, Global
Industry : Retail

Abstract:

Spain-based Mango MNG Holding SL (Mango), the flagship of a group of companies involved in design, manufacture, and distribution of garments and fashion accessories, sold garments for men and women and accessories through exclusive stores. The company was started in 1984 in Spain, and expanded rapidly to more than 107 countries across the world by 2012. Mango went on to become the second largest textile exporter in Spain. Mango was one of the pioneers of fast fashion. The company was able to design the garments and send them to the stores within a span of three months.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

It could also bring designs with slight modifications within just two weeks. The case discusses Mango’s business model under which it retained some of the core activities of its value chain in-house while outsourcing the rest of the activities. Important activities like design and distribution were managed completely by the company, while manufacturing, which was a labor-intensive task, was outsourced. The company retailed through its own outlets as well as through franchisees. This business model helped the company expand rapidly and also minimize the risks. The case explains in detail the design, production, distribution, and store management processes followed by Mango.

Issues:

Analyze Mango's business model.
Study the design, production, distribution, and store management processes at Mango.
Evaluate Mango's core and non-core activities.
Understand which processes can be managed in-house and which ones can be outsourced.

Contents:

  Page No.
Focus on Core Activities to Remain Stylish 1
Background Note 1
Core and Non-Core Activities 3
Design 3
Design Collaboration 5
Determining the Production Target 6
Sourcing & Manufacturing 7
Logistics & Distribution 9
Stores 10
Franchise System 11
Looking Ahead 12
Exhibits 14

Keywords:

Mango, Spain, MNG, Mango Barcelona, fast fashion, core activities, outsource, non-core activities, design, forecasting, logistics, franchise system, distribution, globalization, Mango Touch, HE by Mango, supply chain

Focus on Core Activities to Remain Stylish - Next Page>>


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