Case Analysis Of Zara Case Study Usa

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’s value proposition is that it offers its customers cutting edge fashion at very affordable prices. It actively seeks out what styles are “hot” in the fashion world. After Zara has identified the latest trend it can have the

Zara’s mission was always to provide the consumer the ability to purchase high quality clothing and footer with the latest trends with same look as the high fashion luxury brands at an affordable price for the everyday man or woman which has led to their steady rise and leading to customers being loyal and sticking with brand for a long period of time.

Zara is a dress retailer who has taken another approach in the business. It was established by Amancio Ortega in 1963 in Spain. Its guardian organization is claimed 60% INDITEX by the Ortega family and Inditex has completed in 2005 to 6.741 billion

Barriers to Entry: Due to the recent recession and weak economic market, many new players have avoided entering the retail industry. Zara has taken advantage of this opportunity to be the first to enter into many markets across the world before its competitors. With the economic future improving, Zara will be facing more and more competition especially in the United States. Rather than implementing new strategies on

ZARA is an understood Spanish garments brand well known for its high-speed answer, which is considered as a win variable for the organization and obtaining competitive edge over its rivals around the world. Style is about new and in vogue garments, ZARA's stock administration and distribution strategy are the key components behind its high-speed answer procedure. ZARA has outlets in 86 nations, including Europe, United States, Middle East and Asia. In 2012, Inditex the guardian organization of ZARA has asserted US$20.7

What makes the middle aged mother to buy cloths in Zara while the daughter aged in mid 20s buys Zara clothing? Because it is fashion able and up to trend. By collecting data and focusing on shorter response times, the company ensures that its stores are able to carry clothes that the consumers want at that time. Zara can move from identifying a trend to having clothes in its stores within 30 days. That means Zara can quickly and catch a winning fashion trend, while its competitors are struggling to catch up. Catching fashion while its hot is a clear recipe for better margins with more sales happening at full prices and fewer discounts. In comparison, most retailers of comparable size

Zara’s goal is to offer fashion at reasonably priced level in moderate quality products. Zara has a slightly different business model

Zara 's combination of cutting-edge fashions and culture lends itself well to a European-style, fashion-conscious consumer. While this type of consumer can be found in New York, this is not representative of the entire US market. Retailers in small towns and urban sprawls rely more on a shopping mall atmosphere. Adapting that strategy would undermine Zara 's image. It is therefore recommended that Zara target only major metropolitan areas which would likely have higher concentrations of fashion-minded individuals.

The basic strategy for fighting competition is to attract buyers at lower prices, more unique designs, high-quality design, efficient customer service and solid image brand. Thus bargaining power of buyer for apparel industry is high as the products falls under the basic needs in human lives. There is no much difference in terms of products offered by the apparel company, so if buyer is unhappy with the product or service they can easily switch to another brand. Thus, Zara are trying to strengthen its position in the market by using their unique strategy by giving priority to buyer to meet their special needs.

Zara’s product differentiation strategy is based on high quality and low prices. The company wants to be fashionable and desire for everyone. This is the reason of their strategy (low price and high quality).

Information Technology: Zara was able to balance convergence and divergence within the company that provided a great platform for its expansion into other countries. They followed standard procedures in selecting the market that closely resembled the Spanish market, had a minimum level of economic development and relatively easy to enter. The decision of an “oil-stain” approach in entering made it easier to scale operations by opening up a flag-ship store to fully understand the local environment and culture, then after additional stores would be added. This is similar to the approach Amazon.com is taking in expanding its operations abroad by targeting easy to enter countries and limiting the amount of categories before expanding. In addition because many of the markets they entered were similar to Spain they were able to use basic/standard designs to make up 85%-90% of the product mix. Zara’s expansion procedures also left room for customization for each market and store that wasrequired for different cultures and countries. Some of the areas that had to be tailored between countries were the type entry mode (franchised, owned, joint), product mix and offerings that fit their market (decided by the store owners), pricing (some countries are more price sensitive like Germany; however, France was more fashion sensitive) and brand positioning (based on purchasing power and taste). Zara’s open culture amongst headquarters and the

Zara is a clothing company that was founded in 1975 and came from Spain. Its under Inditex group which owns other brands such as Massimo Dutti, Pull & Bear, Oysho, Uterques and many more companies. Zara grew very fast and currently in 2012 has 1,617 stores worldwide. With a large name in the fashion industry, besides that, Zara faces tough competition internationally including H&M, Benetton, and GAP. In order to keep up with the speed chic, Zara need to keep up also with the information system to run their business.

During the 1980’s, Zara started its international expansion as a result of a change in its production of clothing, which allowed the company to react to trends much faster, creating “instant fashions”.

The ZARA Company faces severe competition from competitors such as H&M. Due to the low growth in the fashion industry in Europe this competition has become more severe. So there are two kinds of competitors existing among the customer that is Global competitor and local competitor.