Zara Case Study

Second, in fulfillment, we can also see speed in responding to demand. For example, the replenishment, as well as production will be optimized according to supply and demand as quickly as possible. Besides, the fulfillment will commonly completed in one or two days, clothes flowed quickly, and without stopping, from factories to DCs to stores, where they were immediately put on the sales floor. Third, in design and manufacturing, we can find how Zara respond quickly to demand. Zara brought out new items continuously throughout the year, including both changes to existing garments and entirely new creations. The network of production had made design from conception through production and into the DC in as little as three weeks. Besides, Zara did not have to predict what would be selling six months, or even one month, in the future; it could continuously sense what customers wanted to buy and respond “on the fly.” All these operations reflect the speed-chasing and target-oriented nature of Zara business.

“Zara has pioneered leading-edge fashion clothes for budget minded young adults through a tightly integrated vertical structure that cuts delivery time between a garment’s design and retail delivery to under three weeks (against the industry norm of three to six months)” (Grant, 2010, p.212)

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 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

Let us first consider Zara 's main competitive advantage before analyzing how current and potential future strategies will affect this competitive advantage. Zara currently employs a "design-on-demand" retail model allowing the company to bring the latest fashion trends from

Zara's short lead-time gives a higher chance for a more accurate predicting the next fashion. This makes them able to meet the customers demand and offer a higher level of fashionable clothes in their

The core concept of Zara 's business model is they sell "medium quality fashion clothing at affordable prices", and vertical integration and quick-response is key to Zara 's business model.  Through the entire process of Zara 's business system: designing, sourcing and manufacturing, distribution and retailing, they presented four fundamental success factors: short cycle time, small batches per product, extensive variety of product every season and heavy investment in information and communication technology.  These four elements are involved in every aspect of the business.

Zara is a clothing company that was founded in 1975 and came from Spain. Its under Inditex group which owns other brands such as Massimo Dutti, Pull & Bear, Oysho, Uterques and many more companies. Zara grew very fast and currently in 2012 has 1,617 stores worldwide. With a large name in the fashion industry, besides that, Zara faces tough competition internationally including H&M, Benetton, and GAP. In order to keep up with the speed chic, Zara need to keep up also with the information system to run their business.

As technology developed to be ubiquitous, the expectations of customers have grown correspondingly. Companies are now able to become global and complex easier than ever. Competition for consumer’s demands is growing on every front, forcing businesses to modify or create new business processes in a much faster timeframe than ever before. While ZARA originated in Spain, the company has stores in 86 different countries around the world.

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

Firstly, Zara can introduce new product rapidly. According to Loeb (2013), Zara owns groups and teams which are focused on designing and managing for the business. Those teams and groups will track the preferences and buying behaviour of their customers and collect customers’ feedback to make a quick decision and start designing for next collection. They superintend all about the designs and products and come

Multi-brand strategy refers to the development and marketing of two or more competitive products by the same firm under different brand names. Zara has created a multi brand strategy through brand acquisitions such as Massimo Dutti for quality and conventional fashion, Pull and bear for casual clothes, Berksha for avant-garde clothing, Stradivarius for trendy clothing, Oysho for lingerie etc allowed Inditex to target different segments more effectively which were built within the domestic market first and launched for international markets.

The company’s vision as stated on the website: “Zara is committed to satisfying the desires of our customers. As a result we pledge to continuously innovate our business to improve your experience. We promise to provide new designs made from quality materials that are affordable”.