They must be able to understand the similarities and the differences of customers from strict cultures and liberal cultures. At the same time, Zara take in consideration the industry analysis the most compelling evidence, Zara adopted a strategy that helped the company to survive in this competitive industry is the fact that Zara is a vertically integrated retailer. It controls most of the steps of the production designing, manufacturing, and distributing. This tactic allow the company’s self-containment throughout the stages of materials, manufacture, product completion and distribution to all of its stones with locations around the worlds, in a very short period time. Other strategy Zara used after reading the industry analysis is diversification.
In addition to this, it is also a good idea to increase the speed of manufacturing the products. At the same time Zara had already established a number of transport enterprises in some major of Europe which make consumers get the products a bit earlier. The motivation of Zara having their production system is that it can have some advantages than other clothing competitors. The last aspect is following the progress of the times. During the 21st century and the information times, Zara have access to the IT information which can help it to manage their chain corporations.
Innovational models dies creative values and their products are generally cheaper than others like IKEA and all othe brands in the same line of action and are highly successful to innovative other existing models in the market. The customers of Zara are able to wear the newest fashions as they enter the market. People are always trying to find a way to be the first one representing the newest fashion. With Zara making this possible, they have established a strong customer loyalty to the ones that always want to be the first one wearing a new coat or shirt. FURTHERMORE : THE way that Zara creates value to its customers is by pricing clothes differently depending on the location.
this in turn gives then the best advantageous to lead the relative market and industry and emerging as the leader in fashions Conclusion The Discount of Zara is about 18% of its total operation range, where half of the level its competitors as Zara operates with decent level of sharing data and integration between retailers, manufacturer and third party researchers as essentials & also Zara has an effective way of aligning right supply chain strategy is to match product uncertainty. Postponement strategy can considerably reduce inaccurate forecast risk and do a responsive supply chain strategy. The marketing officials of ZARA are very well trained and experienced and doing their best to generate 100% results as well. ALSO Over all the main strategy of ZARA as they don’t depend on others but do all expertise by themselves only so they are unique in the science that they are all in all and getting maximum competitive advantages.
Case of Zara, the Leading Clothing Retailer University Student University of the People Abstract This paper examines a case of Zara, the leader in clothing retailer industry which worked against all odds to become a giant during recession times. It is an innovative company with well-organized production systems, logistical systems and strives to create competitive advantage through good relationship with customers and by employing high end technology and communication systems. Its operations are centralized in Spain but communicates to other parts of the world like Europe in the shortest time possible. Reasons for the competitors not to perform well have been addressed and possible strategies elucidated. Keywords: Project Management Office Zara, the Leading Clothing Retailer Case description The case is about Zara Clothing Fashion
The company has a short time frame within which an idea is implemented. For instance, Zara designers may conceive a particular design that may seem fashionable at the current time and ensure that clothes are within the retail outlets within ten days. The speed of innovation and invention favors the versatile customers who love moving with the fashion trends. Zara, however, ensures that it releases few clothes to test the market thus saving the company on huge inventory costs that would lead from a dead stock. Notably, Zara has shied away from the top-down decision-making approach because the company understands that the employees are more inclined to understand the consumer trends.
Zara 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.
In today’s highly competitive fashion industry where companies operate in a very dynamic and turbulent environment, retailers need to adapt to shifts in customer behaviour and respond to competition. For these reasons, it is important for them to be agile and innovative, so as to gain competitive advantage and stay ahead of their rivals. In order to achieve this, they have to follow a strategy that will differentiate them from the rest of the industry. Zara is the flagship chain store of the spanish international group Inditex, founded by Amancio Ortega and his then-wife Rosalia Mera. Headquartered in the town Arteixo, Zara opened its first store in 1975.
The explicitly competitive information gathered included data on levels of concentration, the formats that would compete most directly with Zara, and their potential political or legal ability to resist/retard its entry, as well as local pricing levels. According to Castellano, Zara- unlike its competitors- focused more on market prices than on its own costs in forecasting its prices in a particular market. These forecasts were then overlaid on cost estimates, which incorporated considerations of distance, tariffs, taxes, and so forth, to see whether a potential market could reach profitability quickly enough (often within a year or two of opening the first store). The actual application of
Zara is one of the leading fashion companies in the world according to the fashion magazines in the world. The company has been able to attain its currents heights due to its strategic management that has been because of good leadership at the company. In this research paper, market analysis of the textile and clothing industry will be discussed. In addition, the paper will discuss how the strategies that the company has employed to attain its current success. The objective of the papers or rather study is to highlight on the Zara’s SWOT analysis, and conduct the PESTEL analysis and develop a theory that students can learn from the research that has been conducted in the business discipline after carry out on the porter’s five forces of the textile industry that Zara operates in.