Zara Case Study Analysis

1858 Words Aug 17th, 2013 8 Pages
CASE STUDY ANALYSIS: ZARA
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Table of Contents 1. Introduction 3 2. Strategic Issues Underpinning the Buying Decisions at Zara 3 3. Zara’s Product Mix Strategy: Advantages and Disadvantages 6 4. Conclusion 8 REFERENCES 10

1. Introduction
Zara is a successful retail clothing company that expanded over the years due to its elaborate supply chain and excellent product mix strategy. The company established in 1963 opened its first store in 1975, in La Coruna. By 1989, the company had ninety-eight retail shops and production facilitates distributed around Spain. This followed international expansion where the company opened several other stores around the world. The company has a huge
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Zara sells fashionable clothes designed to achieve fashion trends and local customers’ taste. The issue of fashion durability is not a crucial aspect for the company because the company’s aim is to provide clothes that remain fashionable for comparatively restrained period after which new fashion replaces the old ones. Zara provides products with design exclusivity. Consumers require products with brief life cycle because a few people only wear such products. The delivery speed of the company’s products also enhances its buying decisions. For fashionable products with a brief life cycle and uncertain demand, delivery speed is paramount. The delivery entails quick placement of products into the company’s stores as well as replenishing the inventory when needed. The delivery of the company is also reliable. Zara designs, produces and distributes its products quickly and through reliable delivery channels. The company’s deliveries get into their respective stores on time. For instance, when the company tested the new Khaki skirt in Coruna store and realised that it was a hit, 7, 800 skirts were sent within 12 hours to over 1300 stores across the globe. The brief product life cycle and the fashionable nature of the company’s products imply that consumers cannot remit higher prices for the company’s product. In this regard, the company’s price is comparatively sensitive, and therefore, Zara’s offers products with moderate prices.
Moreover, the company places big

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