Delivering Sources of Value (channels) To what extent does the organisation use multiple channels

Zara is a high-end street store offering the latest tastes in fashion for women, men, and children alike. Amancio Ortego, Zara’s founder, has made the store grow with rapid success in both its home country, Spain, and internationally. One of the distinct reasons why Zara is such a unique company compared to its competitors is its foundation of the quick response system. Today, Zara’s cycle time is six weeks, in which it responds to its customers’ demand very quickly, unlike most stores that take half a year. Overall, Zara is distinct from most apparel stores in its ability to travel globally and from its international strategy.

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).

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 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.

Zara’s value chain differs from the other traditional models a lot. The design and creation rely extensively on copying fashion trends observed at the fashion shoes and at competitors’ points of sale, which based on buyers and designers alike.

Any product or service in the marketplace utilizes distribution channels to reach its customers. Although the manufacturers and services providers can and do provide their goods and services directly, utilizing distribution channels multiplies the number of goods and services that reach the marketplace (Advameg, Inc, 2011). Therefore, distribution channels can increase market share and profit margins since these distribution channels help the company’s product reach its target segments and enter into new marketplaces (Advameg, Inc., 2011). As they enter into new regions, stores, and the like, manufacturers and service providers can capitalize on these channels and markets by cultivating

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

Zara’s strategy is to offer cutting edge fashion at affordable prices by following fashion and identifying which styles are “hot”, and quickly getting the latest styles into stores. They can move from identifying a trend to having clothes ready for sale within 30 days (whereas most retailers take 4-12 months). This is made possible by controlling almost the whole garment supply chain from design to retail.

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

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).

Zara is unique in its marketing model as Zara has a policy of zero advertisement. Plus, its concept of fast-fashion enables Zara to produce new collections every few weeks. This stimulates customers to visit Zara approximately seventeen times during a year, opposed to the three times other, similar companies expect their customers to visit, as Zara’s products change regularly. Customers only have a short period of time to buy a specific item. The fact that Zara produces all its clothes itself, instead of buying clothes from other retailers, also makes

"ZARA Textile is devoted to achieve consistent improvement in the system of providing products & services to the customers through On Time Delivery & Enhancing Customers Satisfaction by means of Quality and Value."

what our distribution channels 0:03 dispute in channels at the means by which businesses get products to their 0:08 consumers 0:09 distribution involves links in a chain of distribution 0:13 as products are sold between different businesses on route 0:17 to the final consumer there are three main types of distribution channel 0:22 one direct to the consumer to 0:26 to the consumers via retailers 3 0:29 to consumers via wholesalers and retailers 0:32 let me say little about each day 's firstly 0:37 direct these products with relatively low volume sales 0:42 are often sold direct direct says could be made online 0:46 through mail order or two shops owned by the manufacture 0:50 businesses selling direct do not rely on shops 0:54 or other in two majors to sell their product well-known examples have 0:59 businesses that sell direct to the consumer 1:01 are direct line insurance and Dell 1:05 computers distribution via retailers 1:10 large retailers often purchase goods from manufactures 1:15 and sell on to consumers this method a distribution is sometimes called 1:20 modern distribution products reach consumers feel one into majorie 1:26 large retailers have enough buying power 1:29 to negotiate bulk discount prices with producers 1:32 to produce a benefit by being able to concentrate primarily on making the 1:37 product 1:38 without needing complicated distribution systems 1:41 to splice thousands or millions of customers 1:44 produces just distribute too much smaller number