Airline and Zara

2455 Words10 Pages
Introduction Zara is one of the largest international fashion companies. It belongs to Inditex, one of the world’s largest distribution groups. According to its official website, Zara treated the customer as the heart of unique business model. Ryanair is one of the world’s favorite airlines operating over 1,500 flights per day from 51 bases on 1,500 low fare routes across 28 countries, connecting over 168 destinations. Zara and Ryanair have been a great success in their own industry. Both of them are famous in their low cost comparing to its major competitors. This research is going to investigate the position of the two companies and recommendations are made to both companies to further improve their strategic position in the…show more content…
Moreover, it encourages recycling the hangers and security tags. It also supports ecological agriculture by using organic cotton. Though it is more eco-friendly, it may incur more cost which hurts the cost advantage of Zara. Legislative Plagiarism is always a concern for Zara. Trends are often copied and sold at a very low cost by other competitors or other street vendors. Some countries like China have merely a low protection of intellectual rights which threats the profitability of Zara’s design. Analysis of Zara’s Strategy Zara’s strategies can be positioned as below: [pic] Zara clearly established a differentiation strategy by designing according to the trend and customers’ tastes. The target customers are more the public who cannot afford very expensive stylish goods. Moreover, not only the design, it also changes its fashion very fast and up-to-date. Combining the two factors, it is clearly that Zara positioned itself as Focus Differentiation, which provides uniqueness with a narrow market segment. At the same time, with the just-in-time and manufacturing-to-sales cycle, the cost of Zara’s clothes is relatively low, thanks to the technological advance and Zara’s unique supply chain management. Even so, the uniqueness is more the core competence than cost for Zara. Ryanair SWOT Analysis Strength The significant advantage of the company is the exceptionally low cost and high
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