Case Study On Zara

Zara ' employees seem to have a very good ability predicting the next big trend in fashion. The product market specialist and store manager spend a great deal of time communicating this tacit knowledge of what the next big seller item is going to be. Even some of the store employees are wearing Zara products indicating that too are aware of what will be the next fashion trend. It is through this tacit knowledge that Zara is capable to getting a jump on their competitors. This feeling or sense of what products will be in demand, and results from sales at a test store, Zara store managers and market specialist are able to spread the word to other stores.

Zara is the major brand of the Inditex Group that is one of the world’s largest fashion retailers. The group is composed out of eight brands: Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque; comprising 6700 stores all over the world. Zara is a Spanish company and has more than 2000 stores located in 88 countries. The subsequent table compares and gives an overview on each brands creativity approach:

Being able to acquire a new market may bring those new customers to their current market.

According to Lederer and Hill’s Brand Portfolio Molecule an organization’s product offerings are synergistically related. The Brand Portfolio Molecule identifies a large central or lead brand. This brand represents the most influential brand with the organization’s portfolio. Lederer and Hill also identify the strategic and support brands which influence customer purchases. The network of relationships that exist amongst the brands whether positive or negative provide a map for the marketer to manage the current product offerings the portfolio represents (p. 77).

According to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”. However, as Keller highlights, a brand is also “something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace”. Therefore, a brand is an identity created to differentiate itself from the competitors and to be remembered in consumer’s mind.

The case study is upon on the resource based view. First, the firm resources were divided into three major parts: tangible resource, intangible resource and human resource as Grant suggested. The main body of the essay will also be divided into three parts according to the resource classification. Then, a VRIN test would be carried after listing different types of resources to inspect whether they are able to provide a sustainable competitive advantage for Zara. Finally, Zara’s dynamic capabilities will be discussed to state how Zara used the resources based on their organizational culture.

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 uses vertical integration, in a vertical integration several stages of production and distribution of a commodity are influenced by a single company.

Ans: In product category they offered multiple brand. Each brand operated as a separate business compare with its siblings as well as other firms. Each brand has a different strategy for that they have separate delivery of profit target.

A company’s image can be described as the overall perception of the company. ZARA’s business idea is to in an international market offer high quality goods to a low price. ZARA’s main competitors are H&M, GAP, and Mango, in Georgia manager thinks that the main competitor is Massimo Dutti. By positioning themselves in the market, they are affecting the consumer’s perception of the company. ZARA’s main competitors have similar market positions, they target the same customers and have similar business ideas. There are some factors that make ZARA stand out as more exclusive. As the manager at ZARA in Georgia mentioned the clothes are not mass-produced and products that do not sell well are taken away from store. The collection is changed every second week. This makes the products stand out as more unique in comparison to H&M products which are mass-produced. This also makes the customer more willing to buy the product immediately instead of thinking and reflecting on whether to buy or not. In the store you can also get the feeling of exclusivity, as the manager in Georgia mentioned there is a lot of space between the clothes and the store is bright and the personnel is wearing all

Fast fashion is merely more than a one hit wonder. The fast fashion industry has grown and has ultimately proven itself to be profitable industry in the clothing market. The retailer most distinguished for a fast fashion approach is Zara (Hayes & Jones, 2006). Zara is a child company of the parent company Inditex. Zara stores have established the stride for merchants around the globe in creating and shipping fashionable clothing (“Case 3-4. Continued Growth for Zara and Inditex”, 2013). Their marketing approach has helped them become extremely successful in terms of providing the customer with. International marketing strategies and its efficiency assists in the expansion of Zara. Cultural understanding is virtuously

Although there are differences in segmentations, marketing mix and environmental forces surrounding Zara and Padini, we argue that the two share a principle similarity such as both companies’ main focus are their customers. Without customers, neither Zara nor Padini could operate smoothly in the fashion industry. The reason

The aim of this report is refer to operation management concepts and theories about Zara. This report broadens the fashion industry horizons, mainly subject of an investigation the "Fast Fashion". Definition Fast Fashion explained as a stream having more fashion cycles of chronic fashion cycle followed by high fashion houses. The function on which is based the Fast Fashion is faster and repetitive consumerism clothes so anytime customers to feel that they are in vogue. This model, which is known as Quick Response finds response by large companies like Zara, referred to in more detail in the working. The background of today's society is clearly consumer. Made ambitious efforts by corporations around the world, in order to meet the

Esprit has positioned in a different market segment from rivals like Zara, H&M and Mango. The "Esprit woman" describes tis typical customer, should be in their 30s and care more about the quality and value of a product than its price. Most other "fast fashion" retailers are more price-driven and target mainly youngsters aged from 15 to 20 years old.

Brands need to be respected with time. If the managers lose interest in their brands as there is no innovation, lack of advertising, the same