Zara's Business Model

Zara is the largest and most international brand of Inditex, operating 507 stores around the world in the year 2001. Being the preeminent driver of the group's growth and sales, it has employed several distinctive features which sets it apart from both its competitors and its sister brands.
Zara commenced its activity in the year 1975 in the upmarket shopping street of La Coruna, Galicia, which later metamorphosed to becoming Zara's headquarters and roots of its operations. The chain e4allisl-eied;.,,B its position in the market as one supplying "medium quality fashion clothin: at affordable rices."
The main focus of the business function of Zara could be listed as one aiming to capture fashion while in vogue while keeping low capital requirements with higher profits. This was achieved by engineering a unique business model, which incorporated short cycle times in production, quick response aided by high frequency information from stores that enable identifying and responding to market trends efficient. However, Zara' supply chain is limited geo:ra hicall and certain aspects of their business model may not sustain the business in
.`fie long run. us, in this analysis we would first examine Zara's business model and how it manage to such a successful retailer, from gaining a competitive edge over rivals and increasing profit.

Companies that outsource all its production though saving on labor costs must make projections of the seasonal trends well in advance and would have a slower response time to in season customer demands and reacting to failing items. Hence, this may lead to waste of failed items and difficulty in changing orders. In addition, Zara purchases their fabric undyed from a company owned supplier Comiditel that facilitate easy updating of fabric colors and patterns further reducing response