Zara Case Summary
ZARA’s business model is to offer “medium quality fashion clothing at affordable prices” (7). After reading this case, I look at this model in two parts, the first part is offering trendy fashion and the second part is offering it at an affordable price.
I will first talk about how ZARA stays on top of the latest fashion trends. ZARA has heavily invested into Information Technologies that allow them to to sort and acquire information about their consumers in order to design their products to fit future trends. In addition to this technology, ZARA relies upon their store managers to gain information on any trends they see in their store that the automated system may not pick up on, like clothes people wear in the store or what other stores
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To add upon what I said about the supply chain earlier, ZARA uses a Just-in-Time Manufacturing system (9), that allows their product to hit the market quickly and in the correct locations. Also, their supply chain relies on one centralized distribution center which allows the company to know exactly when products are being shipped and where to. Lastly, ZARA keeps a low inventory and will only supply a limited amount of their product and will not supply more if sold-out. This makes the process of supplying products easier as well as implementing scarcity with their products so consumers will “buy now because you may not be able to later” (13). Secondly, ZARA markets themselves in a unique way. They spend very little in media marketing compared to other retailers, thus relying heavily on brand awareness. They do this by investing in prime locations (13) and are willing to change their store locations due to the evolution of shopping districts and traffic patterns (14). This will keep their stores in popular locations and people coming in. When people do enter their stores, ZARA spends a lot of money on renovating their stores so their consumers will enter a beautiful store (13). ZARA relies on their window displays and in store presentations to promote its market image and keep people coming back
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3756 Words | 16 PagesEXECUTIVE SUMMARY Zara can be identified as one of the largest international fast-fashion organizations which is owned by the fashion group Inditex. Their first store was opened in 1975 and from that point of time, they have had an unstoppable growth throughout the years as up to now. After 42 years of operations, today Zara has been able to expand themselves with 2169 stored over 82 countries all over the world. Rather than they were a high fashion brand in the country, Zara has focused themselves as a fast fashion brand where they will change their fashions at a great pace where no one can reach them. Also, the most attractive thing is that all those latest fashion designs are introduced to the public at an affordable price.
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3253 Words | 14 PagesZara is vertically integrated and takes care of designing, manufacturing and distributing its products. This gives it an immense hold on the market as most of the operational inefficiencies are eliminated by the company’s on employees who identify with the larger goal and value proposition of the brand (The New York Times, 2012). Zara works along with the consumers to understand them more closely rather than imposing its own predictions on them. Zara creates an environment of artificial scarcity in its stores for every design it manufactures so that consumers get a feel of exclusivity rather than stock pile up (Johnson, 2012). This gives them a sense of pride to buy a limited edition of products which they find at Zara stores only.
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1741 Words | 7 PagesThey are always the fastest compared with their competitors. In cost leadership aspect, ZARA conducts little advertising and vertically integrated manufacturing operation and distribution system based on information system.
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888 Words | 4 PagesWhere in the domestic market, its main competitors in terms of volume stores are the same Iniditex group, Pull & Bear and Stradivarius. Although Sfera and Mango can also be considered great rivals. Moreover, in the European market, Zara 's main competitors, GAP and H & M. Mango and Sfera and they were in the domestic market, they cease to be European. Rivalry between competitors The number of competitors is high (and are distributed locally, nationally and internationally) The textile sector has a slow growth (because it is a mature sector)
Zara Leadership Style Analysis
765 Words | 4 Pages(BARNAT, "Concurrent Control") As fashion trends tend to change every now and then, Zara could use this control to work on latest trends and future trends. This to ensure that employee work activities produce the correct results without any major wastage and unacceptable services. This also allows Zara to be up to date with its fashion knowledge and also sustain its position in the
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1596 Words | 7 PagesZara also works hand in hand with over 1600 worldwide suppliers (a third from Eastern Europe, i.e. Bulgaria, Turkey, Romania, and the rest from Asia.) Those suppliers appear to have an essential role, and therefore be of extreme importance in preserving the very flexible, and fast supply chain. Most supplier prefer working with Zara, as they are a stable provider of considerate orders. Mr. Alvarez highlighted the importance of trust, and understanding between supplier and Zara, he explained that Zara tries to remain loyal to its supplier as long as good products are delivered, and timing is respected. Those relationships could thus be described as trust-based, and
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