Zara Business Model (Case Analysis)

2398 WordsApr 16, 201110 Pages
Zara Case Quest 4/5/2011 Done By: Faisal Alsawaihan Zara case Quest What Business is Zara In? (Business model) Zara is one of the Inditex group, which they mainly in the apparel industry. It considers the most successful brand in this group and most of profit margin is coming from Zara stores that are widespread around the world (76countries) and their main products of apparel are for men, women, and kids. As we can see from the article (It for fast fashion) and Zara’s annual report in 2009, the business model of Zara is based on the link between three important processes, Ordering, fulfillment and, design and manufacturing. To explain more, Zara’s business model can be addressed in the following: 1- Linking customers to…show more content…
“as a large share of our business, including manufacturing in our own centers and by external suppliers, takes place on a local level, we can provide a rapid response to the market’s demand”( Inditex annual report in 2009). This flexibility has led Zara to meet all distribution concern from the logistics centers to the stores more successfully. 4- The importance of commercial groups which is great Idea with Zara because it saves a lot of money that could go for R&D or advertisement. Those teams have very defined roles in terms of production, designing, purchasing materials, and setting the prices (appendix1.Zara business model). The observation strategy another successful way of Zara concept. A group of managers travels to worldwide to recognize the trend of clothing styles. Zara has activated continues communication system between all the product managers and even between store-to store managers and distribution centers. 5- Promotion and advertising strategy of Zara could be seen as different of others in industry because they placed the advertisement only to promote the twice yearly sales or to tell people about opening any new store. Their vision here can see as in the following: a. Zara believes that the best advertisement for the store is the best location you could have. Therefore Zara could be seen from most shoppers in malls as the best store in self-advertising location b. Zara has developed clear vision of the time they place the new

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