Zara Case Study : Zara Case

“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 is a name that seems to always come up when people talk about Spanish fashion. It is one of Spain’s most famous clothing brands and Zara stores can be found all over the world. The company was founded in 1975 by Amancio

The case study is upon on the resource based view. First, the firm resources were divided into three major parts: tangible resource, intangible resource and human resource as Grant suggested. The main body of the essay will also be divided into three parts according to the resource classification. Then, a VRIN test would be carried after listing different types of resources to inspect whether they are able to provide a sustainable competitive advantage for Zara. Finally, Zara’s dynamic capabilities will be discussed to state how Zara used the resources based on their organizational culture.

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.

Zara is established in 1975, as the flagship brand of Inditex group, which founded by Amancio Ortega. In a short period, Inditex group has become one of the world’s top fashion retailers with more than 4000 stores across 82 countries around the world and more than 50% is accounted as Zara’s. Another Inditex brands which operate worldwide are Massimo Dutti, Oysho, Stradivarius, Zara Home, Pull and Bear, and Uterque. By seeing the Inditex’s brands list, it can be concluded that Inditex almost covers all aspect in fashion industry (Zara 2008).

Zara brand products are part of the Inditex Group which was founded by Amancio Ortega. Zara brand products currently compete in what is called the fast fashion industry. Fast fashion is a trend in the fashion industry where companies produce and sell new clothing trends within the market as quickly and cheaply as possible (Fernando, 2015). This is made possible by new innovations within the supply chain management of these companies. Innovations are precisely the way Zara has become one of the top fast fashion businesses in the industry. By utilizing their core competencies along with efficiently managing their supply chain, Zara has developed a way to give customers what they want faster than anyone else (Hitt, Ireland, & Hoskisson, 2017, p. 100). Zara has done an excellent job at defining its business strategy and utilizing their core competencies to create value for their customers which is why they keep coming back. This also brings in new customers to purchase from Zara. The purpose of this paper is to examine Zara and various aspects of their business.

Zara, Daughter Company of Inditex, is a fashion retailer known for innovating the fashion industry and changing the way the industry operates forever. Zara, the largest retailer in the world, has raised the bar, forcing other companies to follow suit in rapid product turnover with small batch production and high number of designs to please their customers. Zara produces more than 450 million products annually and has 1770 stores in 86 countries. Their success derives from their process innovation which dictates all aspects of their operations; they took a different route and gained a competitive advantage that no one expected.

The brand is well-known for its capability to distribute new clothes to the stores “fast and in a small batch, twice a week”, the store managers order clothes and other items, on a schedule that they follow in all Zara stores, so the new garments arrived just in time. To reach this Zara controls most of its supply chain than the majority retailers do. On opposed to H&M, Zara keeps a nearly all of its production in-house.For Zara, the supply chain is its competitive advantage. In house production allows it to be elastic in the quantity, occurrence, and multiplicity of new products that are gone to be launched. Zara commits only 15 to 25% of a season’s line. And it curls in only half of its line by the launch of the season, sense that up to 50% of its garments are designed and manufactured during the season. If items become highly popular all of the unexpected, Zara respond directly and create a new design in that popular style, so that gets new stuff into stores while the trend is still

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.

This report is mainly focusing on studies of marketing strategy. By analyzing and discussing the case of Zara, we will be able to have a more in depth analysis of companies and their marketing strategies.

Zara is a Spanish clothing brand founded in 1975 by visionary Αmancio Οrtega Gaona in Spain. Zara is one of the largest selling brands from the largest retailer of fashion "INDITEX". Zara is known chain of brands particularized into designing clothes, shoes and accessories for all genders and ages. Zara owns lots of employees (40.000) for fast clothing fabrication and shipping needs. Zara is now available in 88 countries with a total of over 2000 stores worldwide and 29 online markets (Slack, Chambers, and Johnston, 2009). Also, Zara is classified as one of the biggest and most successful companies with due to the excellent quality of products provided and the visional given attempt to compete and claim the first place on sales among other strong companies such as H&M and Gap. Of course, it cannot be neglected that Zara managed to rapidly correspond to customer's demands.

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.

Zara is a fashion company founded by Amancio Ortega in Spain in 1975. It is part of Inditex holding company, a large fashion retail chain that operates five other clothing brands. Since its inception, Zara has been financially very successful as it contributes the most to Inditex’s overall revenue. Also, Zara’s fast growth is represented by its massive global presence; it has stores all over the world from Americas to Middle East to Europe, its principal market. In my analysis, Zara’s competitive advantage lies in its ability to mass produce a large range of highly demanded latest designer clothes faster than its other competitors in the industry. By virtue of being first in the

Inditex owns Zara among others. They demonstrated a strong first-quarter profit and revenue growth across all of its major regions where they operate. From the stock market stance, their shares rose 5.5% in Madrid.

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.