Competitive Advantage Of Zara

1950 Words8 Pages
Fast fashion industry has been widely spread globally in the recent decade. Zara is the pioneer of fast fashion, the success of Zara is always a myth in the retail industry. Many scholars investigated the competitive advantage of Zara and would like to dig out the reasons of how a company can create such a fortune every year. In this essay, I explore the value chain of Zara from diverse perspectives, identify its relevant successful factors to be the competitive advantage. Firstly, I briefly introduced the background of Zara, evaluated their business model and operations to create a forceful value chain including the vertical integration and supply chain management with adopting the theories, finally addressing the challenge of ethical consumption to Zara and the sustainability of competitive advantage in long term.

Company Background of Zara Company
Zara, a clothing retailer which was founded by Amancio Ortega in 1975 in Spain, subsidiary to the parent company of Inditex. A distributor who is providing a large range of fashionable items including apparels for women, men and children, as well as footwear, accessories and household products. Up to 2016, there are over 2100 stores located worldwide across 88 countries. Zara’s objective is to encompass the customers’ needs to transform into ideas, trends and tastes to supply the most up-to-date fashion within different people, gender, cultures and ages (, 2016). After establishing nearly half

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