Competitive Advantage Of Zara

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Initially, the efficient supply chain of the business is a good method to enhance its competitive position. Supply chain refers to those associated operations and activities for converting inputs to outputs. Such activities contain issues of operations, marketing and supply (Han, 2008). High level of combination within the chain is the best method to get competitive benefit. Zara Company achieved matchless success in having powerful supply chain. This company owns numerous branches all around the world. In this essay, we will discuss supply chain of Zara, Zara’s Fast Fashion distribution system, and role of vertical and horizontal analysis in making competitive advantage for business. In the case of Zara, we find that Supply chain contains…show more content…
There is a powerful linkage between all those activities so as to help the company to achieve strong competitive benefit (Porter, 1996). By looking to the provisioning activities, we find that this includes all required inputs and raw materials for the company. This includes the second-hand fabrics and creative technologies (Porter, 1996). Zara achieved success in built-up 40% of the required initial fabrics. This is also good for rising competitiveness of Zara. The inbound logistics in this company helps to make linkage between suppliers and manufacturing activities. Those logistics depends on using trucks. Manufacturing activities in Zara Company point to all those issues of manufacture designs and packaging. There are approximately 300 professional designers in Zara. It also possesses inventive machines that produce 80,000 units in every hour. Using powerful innovation to support those manufacturing activities is too efficient in maximizing the efficiency of the company operations. The…show more content…
Enforcement of such system “fast fashion” is too good in decreasing the time of production. This is clear in the case of Zara as recognizing the required fashion and applying or producing it in a short period of time less than two weeks. This is too good for forming rapid answer for all clients’ requirements, and so keeping clients satisfied. This system of fast fashion also helped Zara to produce more effective styles. This included the production of 11,000 items, while in case of rivals we find that Gap produced only 4,000 items, and H&M produced only 2000 items. Moreover, the adopting of such system helped the company reduce level of supply “scant quantities”, and this is too effective for satisfying clients as they wear a unique model. All those issues helped Zara to support its name in the market, and so despite of the different disadvantages, we find that Zara will

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