Zara Essay examples

1242 Words Feb 26th, 2013 5 Pages
Executive Summary:
Zara is one the leading fashion having a substantial sale of Euro 8088 million in 2010. There are many factors which have led to such a substantial growth for the company some of which are analyzed in the subsequent discussion. Some of them are capability to release in-season fashion in 50% less time than competitors. The central distribution model and efficiency in supply chain has contributed to this immense success. Once the stores are opened outside Spain this is the biggest hurdle which it has to cross. 1. What makes Zara different from other specialty apparel retailers?
There are many levers which differentiate Zara from its competitors some of which are: a) The biggest strength which Zara has is that it
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f) The number of designs of around 10000 which were released every year was much more than a regular retailer and provided the option that even if some designs fail it will still have a lot of designs more than its competitors. g) Zara owned a part of the every entity in supply chain which gave them an immense control over the process of releasing the new designs in a very short period of time.

2. What is Zara’s business and operations strategy? Are they well aligned?
Zara’s business strategy primarily consisted of maintaining the control over the full value chain so that it can react to changes in fashion very fast and come out with new designs before competitors. The close relation it maintained with store managers and store associates help is get the valuable customer feedback on what the latest demands of industry are. This helped Zara to make changes to its designs during the whole year as per the season. The seamless integration between manufacturing and feedback mechanism provided it with low turnaround time to market. Another business strategy which was different from other retailers was very low ad spend and spending on maintaining the high quality of in-store experience. Particular attention was paid to where the store is located and fashion district was always the preferred location. Also it the display of store…

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