Zara Competitive Advantage

VRIO Analysis The VRIO analysis helps in understanding the value, rarity, imitability of the products manufactured by ZARA. It also helps in understanding the organization too.
Value
Zara has its own designing, production, distribution and selling facility. This adds up to the value of the brand and the authenticity of the products. As a result of that, it is distinguished from other competitors. These internal factors save up the manufacturing time and money spent in outsourcing. Because of that, the company has a better balance between suppliers and buyers. Adding to that, the company is extremely concerned about following the changing fashion trends. It launches new collections and season sales that create enthusiasm among the costumers.

This attribute or service that makes a company or firm superior to other competing industries is called competitive advantage. The reason why Zara is better and more favorable to customers than other companies is because of its competitive advantage. One of Zara’s competitive advantages is its ability to quickly introduce new products to the market. Zara releases new designs almost every week, which is a huge deal because this means that it is always up to date with fashion trends and it also means that their customer can really rely on them when it comes to satisfying their own fashion needs. Zara basically can quickly transform an ordinary sketch to a product in the store in the matter of two weeks. Zara’s second competitive advantage is the fact that it manufactures and designs the majority of the attires that it sells in its stores. It is extremely rare to find fashion companies that manufacture as well as design their products. Most fashion industries avoid doing both because it is considered as a hard task and also because it takes a lot of time to be able to finish the product. This competitive advantage raise Zara automatically up because the customers realize how much effort Zara puts in order to please them and also to guarantee the best quality of products that they sell to

Zara produces around 11,000 distinct items per year , 8000 to 9000 more items are produced than its competitors, of course disregarding what new and desired trends are designed and produced during each season. Statistically speaking, only 15-25% of the products are produced before the seasons start. And then 50% of the rest of the products are produced during the season and they are designed according to what is popular and what is on demand. Zara’s quick and immediate response to new fashion is what makes it more valued by customers than the other shopping