Agora Swot Anlysis & Competitive Advantage

The IT staffs were certain that the existing SAP software will provide all necessary computer support. They believed that even if the SAP would not fit their business processes precisely, it may be an investment that provides greater long-term flexibility and better solutions to the company’s problem.

The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of

Zara broad offering meets its customer’s demands quickly. This is due to management’s almost instantaneous response to changes in customers’ needs (Ghemawat et al, 2006).

Cheaper competitors - products that are being offered in the market currently are priced cheaper than those that ‘Jamie’s Lunchbox’ will provide.

Zara is an illustrative example of the correct operations management. The first shop was set up in La Coruna and so far sixty eight countries have had their own Zara store. This progress happened very fast and successfully. We can all understand that the system of Zara works properly and people of Zara do their work effectively. The way they design, they produce, they sell things is surely the appropriate. Moreover, there is a wide variety of products every season which leads to its constant success.

This division sells products such as cars, holidays, pharmaceuticals and photographic items (Case study 2005 as sited in LB 160 2013). Again this is affecting local businesses and it can lead to limiting the consumer’s choice as Wal-Mart/Asda decides which products it will sell, dependant on the price it can squeeze from its suppliers.

These points of interest lead ZARA to be the business sector pioneer in dress industry. ZARA can cut its expense and time or having cost and time control as it doesn’t outsource its distribution, this additionally permits them to stay away from the contentions that for the most part emerges on account of receiving diverse appropriation channels. Vertical integration is likewise serving as a state of separation in the middle of ZARA and its rivals, as a rule retailing stores outsource its distribution and that can be the reason of deferred distribution. (Bootwala,

Over the years, what we know as the retail industry has changed. With fast access to information and increasing demand from customers, the retail industry have been fighting to overcome challenges to keep up with the changing times. Zara, a flagship brand under the Inditex Company (Industrias de Deseno Texti S.A) founded in 1975, achieving huge success within the retail industry in most focuses of operation.

An example of successful operations strategy in the retail industry is the strategy employed by Zara which is discussed in this critique. Zara started as a single shop in La Coruna and then rapidly spread its wings to 68 countries; opening a store each day - one of the fastest global expansions the world has ever seen. Throughout the entire system of Zara’s business; designing, sourcing, manufacturing, distribution process and retailing come out a number of success factors: short cycle time, small batches per product, extensive variety of product every season and heavy investment in information and technology. This elements feature in every aspect of the business.

In 1988, Zara opened its first abroad store in Portugal. The geographic and cultural proximity of the two countries facilitate the business. Later on, more stores were opened regardless of the geographic or cultural distance as the business grew bigger. While there were some areas or countries difficult to enter. For instance, Saudi Arabia, Andorra or Malaysia, countries predicted with small markets and low sales or great culturally distant, Zara franchised as their own subsidiaries regarding the product, store location, interior design, logistic and human resources (Flavian, 2000).

Product in the marketing mix of Zara. Zara is known as the coca cola of fashion. Such as craze of this brand among the fashion enthusiasts one of the major strength of the company is that it is able to respond very quickly to the changing needs of the customers. Pricing in the marketing mix of Zara the concept of Zara is to provide its products at a reasonable price to its customers. It follows the customers find its prices quiet affordable. However, we have to know that we are referring to the cream customers who would compare Zara with Hugo boss or others. Zara has premium pricing strategy. The pricing made optimizing development and training costs. Promotions of marketing mix in Zara .it is a unique marketing policy of "zero investment in marketing". Instead, the company uses money it would have used to advertise in opening new stores. The striking thing about Zara Is that it has found differences that matter to the consumers and used that to differentiate itself from the rest of the competition. In the place in marketing mix of Zara. Is very unique and one of the things that make

The existence of products outside of the realm of the common product boundaries increases the likelihood of customers to switch to alternatives. With competitors and fellow industrial, agricultural, construction producers JCB from and operating in the UK. Making it a difficult market to break into and to be competitive in.

Access to distribution channels – New companies struggle to market their products and compete with the existing competive market.

The origin of a fashion house usually carries some cachet. However, Zara does not hail from Italy or France – it's from Spain. Even within Spain, Zara is not based in a cosmopolitan city like Barcelona or Madrid, but in Arteixo, a town of only 25,000 people in a remote corner of Northwestern Spain. Yet, Zara has been active not only throughout Europe, but also in Asia and North America. As of 2009, there are more than 4200 Zara stores in 64 countries – in some of the priciest locations: Champs-Elysees in Paris, Ginza in Tokyo, Fifth Avenue in New York and the Galleria in Dallas (Business week,

New search of market is the next step that after capturing our current existing market we can go to USA and the central Asian markets much deeply. Much more innovation, improved value and quality can added the products for our consumers. Adoption of the new technology will deeply help us to minimize the cost of our products. The research and development department can be making more strong and efficient for the product improvement and products availability. Improved and much more concentrated customers service. Provide continuous staff training and cost effective production of labor. Strive to increase the customer's expectations through the quality, customer’s services and innovation. Increase in the promotional activities through the online marketing to high market share. Building strong relations and very long term contracts with the whole suppliers will be more beneficial for the future