What Is The Advantage Of Zara

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Zara opened its first store in 1975 in La Corun˜a, Northwest Spain. During the 1980s, Zara expanded within the domestic market, opening stores in all Spanish cities with a population greater than 100,000 inhabitants (Ghemawat and Nueno, 2003) . The international expansion of Zara started with the opening of a store in Oporto (Portugal) in 1988. By the end of January 2006, Zara was operating in 59 countries with 852 stores: 664 stores were located in Europe (259 in Spain), 112 in America, 45 in the Middle East and Africa and 31 in Asia (see Figure 1) . International sales accounted for 69 per cent of total turnover in 2005, with Europe being the largest market by far .This article will talk about the supply chain of Zara from receiving its raw…show more content…
First of all there are number of advantages. It is significant for companies to be able to adapt quickly with the fluctuation of demand or the change in fashion trends, in order to reduce the lead time and cost which increases would profit of the company. Another advantage is when the company failed to launch a new product and suffer losses, it would be easy for the company to launch a new product which would achieve great success than the first product. So in Zara 's case, Zara is able to respond quickly to the latest trend, which offers more varieties for the costumers which motivates them to visit its stores more frequently. Another advantage for Zara is that it produces its products in low quantities which give the customer of wearing unique cloth. Second thing there are number of disadvantages too. Zara do experience several disadvantages regarding to its “fast fashion” distribution system practice . However, these disadvantages are offset by the advantages . The disadvantages that would likely to occur is that Zara rely heavily on the high capital intensive investment . The high tech information system that is claimed to be an advent-guard could cost them high price in order to survive in the industry y. To keep up with this high technology plant Zara has to financially back the strategy within the organization . It was also difficult for them to expand to far location as Zara’s warehouses are centralized in La Coruna in Spain . As to date, Zara has successfully opened up 1 495 stores worldwide, but most of them are located in European countries . Due to that, Zara delivers goods via cargo jet to stores farther away . In order for them to keep up with the fast pace in the fashion industry it’s hard for them to cope with the worldwide supplies and the increasing transportation costs . Zara could also experience increasing cost in order to keep up with the latest trend in the fashion industry. As Zara frequently updated the clothing line in stores they

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