ZAZR Analysis: An Analysis Of Zara

Zara has been expanding into new territories since its initial expansion into Portugal in the 1989. Throughout its international development, Zara has kept its central distribution center in Arteixo, Spain, where the satellite distribution centers are sourced from the centralized center in Spain. All of Zara’s products go through this distribution center, and this strategy has its costs and benefits. The distribution center in Arteixo allows Zara to manage its inventory all in one place, and “the warehouse [is] a place to move merchandise rather than to store it”. This allows Zara to be efficient and respond quickly to customer demands, given that “none [of the merchandise] ever stayed at the distribution center more than three days”. Through this warehouse, Zara has ease of access of providing for Spain and its neighboring countries; however, when

Zara is a Spanish clothing and accessory retail company founded in 1975 by Amancio Ortega and Rosalía Mera. It is the main brand of the Inditex group, the world's largest apparel retailer. Zara also owns brands such as Massimo Dutti, Pull & Bear, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe. 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, as of 2017, manages up to 20 clothing collections a year.

Following is an analysis of Zara 's current expansion strategy into the US retail market and recommendations on future tactics to ensure a successful expansion. Zara 's expansion strategy thus far has been quite successful; however, with every new store opened, its ability to maintain an efficient centralized production system and a strong, unique culture will be diminished.

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, a branded Spanish clothing and accessories retailer, was founded in 1975 by Amancio Ortega and Rosalia Mera. It is the flagship retail store of the Inditex group, a fashion group that owns many other brands such as Pull and Bear, Uterque, Bershka, Stradivarius and Massimo Dutti. Amancio Ortega opened the first Zara store in a central street in Galicia, Spain under the name Zorba. Although another store a few blocks away was also named Zorba, the molds of the letters for the sign was already created and it was rearranged, thus coming up with the name Zara. In 1980, the company started its international expansion in Portugal. In 1989, they penetrated the US market and in 1990, they entered the French market. In 2003

Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia. Founded by Amancio Ortega and Rosalia Mera in 1975, it is the main brand of the Inditex group and also the world’s largest apparel retailer (Inditex). It is one of the first store’s to showcase low-priced look alike products of high-end clothing brands. Later on, it was viewed as an ‘instant fashion’ company as it revised its logo, manufacturing, and distribution process along with improvements that included information technology and the use of designer groups instead of individuals. Beauty, clarity, functionality and sustainability; over the years it has remained loyal to its core values expressed in these 4 simple words. With its current portfolio of 2,169 stores worldwide, Zara generated revenue of about US$15.9 billion in 2016. Its target market is young, price-sensitive, and highly responsive to the latest trends (Harbott). They hold a strong competitive advantage over other retailers because they don’t define their target market on the basis of age or lifestyle segmentation, providing them a relatively broader market to target.

Ortega Gaona, CEO, founder, and Spain’s richest man founded Zara in 1975. Zara’s first store was in A Caruna where the headquarters now lay and featured lower priced lookalikes of high end, popular products selling to women, men, and children (Zara (Clothing) 2009). Beginning in the nineteen eighties Zara began experimenting with differentiating the design, manufacturing and distributing progression in order to condense lead times and respond faster to new trends. Gaona considered this to be “instant fashion.” Instead of individuals, Zara used information technologies and groups of designers to base its improvements in fashion. In 1998, the company began its international development through Portugal’s second city, Porto. By 1989 Zara entered the United States and by 1990 entered France. Zara’s international development expanded to Mexico in 1992, Greece in 1993, and Belgium and Sweden in 1994. Zara continued to open stores around the world until there were stores in seventy countries. This includes more than 519 stores in Spain, 116 stores in France, 87 stores in Italy, and 45 stores in the USA (Zara: Cool Clothes Now, Not Later). Zara Performance: Financials: Since Zara is a subsidiary of the parent company Inditex, this report includes some financials about Inditex. According to the

Zara is one of the largest international fashion companies of the world. Founded in 1975 in La Coruña by Amancio Ortega, the company still lives by the simple idea of linking the customer demand to manufacturing, and link manufacturing to distribution. In 1985, Inditex became the holding company of Zara and Jose Maria Castellanos. Ortega and Castellanos both believed that in order to success in the type of business they wanted to build, the use of computers, a quick response to customers and disintegrated decision making were critically important.

Zara is characterized by its unique and rapid-fire supply chain that is governed by the vertically integrated system that links their shops, designers, and distribution system. The key players in this system are the wholesalers and retailers, so controlling the activities of those mark the success of the business. Zara’s system is so integrated that makes it hard for other competitors to nail the starting point of a similar product.

Inditex, the owner of Zara, first started out in the dressmaking and textiles industry before opening the first Zara store in Spain in 1975. The founders, Amancio Ortega and Rosalia Mera, pride themselves on the idea of fast fashion: incorporating a distribution system that keeps up with continually-changing fashion trends. Zara has a very centralized headquarters in Arteixo, Spain. This allows Zara to have a good grasp on the business processes. They focus on speed and responsiveness by delivering quick and small batches of clothing to stores at precise times. The first logistics center for Zara was built in 1984 and encompassed about 10,000 square meters. Since then, Zara has been extremely successful in the fashion industry, winning over the hearts in Europe and then working to expand to Asia and the U.S. The first US store opened in New York City in 1989, although only a dozen exist in America today.

Zara was founded and established 1975 by Spanish born Amancio Ortega Gaona. The actual store dealt with the products of the manufacturing company Zara, was an outlet for cancelled orders of women’s night wears and lingerie. These have made a strong foundation for realizing the association between producer and retail trade

In 1975, Amancio Ortega opened the first Zara store in Spain's remote northwest town of La Coruna, home to Zara's headquarters. Having already worked in the textile industry for two decades, his experience led him to design a system in which he could control every aspect of the supply chain, from design and production to distribution and retailing. He knew, for example, that in the textile business, the biggest mark-ups were made by wholesalers and retailers. He was determined to maintain control over these activities.

· Most of the stores were company-owned and in some markets, particularly in Asia, Zara went in for alliance and franchises.

Zara is a Spanish brand of clothing founded by the visionary Amancio Ortega Gaona and Rosalia Mera in Artexio, Galicia. Zara was founded in the year 1975. It is one of the major selling brands of one of the biggest fashion retailer "INDITEX". Zara is now available in 86 countries with total of 1,763 stores worldwide.

In 1963 a Spanish multinational clothing company known as The Inditex Group, was founded by Amancio Ortega in Galicia Spain. It is made up of 100 companies specializing in textile design, production and distribution. This company started out by introducing a new way of fashion, instead of offering clothing that was long-lasting at an expensive price, they offered clothing in massive varieties at affordable prices. Now Inditex owns worldly famous brands such as, Zara, Massimo Dutti, Bershka, Oysho, Pull and Bear, and Stradivarius, Tempe, Zara Home, and Uterque. These brands have gone on to become corporate owned franchises and have locations all over the world. In 1985 the company had opened 80 Zara stores in Spain alone, and