Zara s Business Level Strategy Essay - 2094 Words

With total net sales reaching â‚ ¬10.47 billion in the first half of 2016, 7096 stores in 92 countries, and an online presence in 39 countries, Inditex is one of the leaders of the clothing retail industry, having recorded positive growth in all geographical areas of its presence in the first half of 2016 (Inditex, 2016c). The flagship brand of Inditex, Zara, has contributed to that growth with â‚ ¬13.628 million net sales through its 2162 stores and its online presence in 27 markets (Inditex, 2016a) In an environment exposed to consequences of global changes in raw material prices, labour costs and rapidly improving technology, Inditex and Zara have been operating with significant and steady success through the past decades. This essay will analyse the strategic decisions behind this seemingly undisturbed growth, with specific attention to Zara’s business level strategy and the way the company manages the potential tension between profitability and social responsibility. Potential future threats and opportunities will also be considered, to evaluate whether the current business model which, as highlighted by chairman and chief executive Pablo Isla, fully integrates bricks-and-mortar stores and online, is sustainable. Inditex s goal, as stated on their website, â€Å"is to offer products of the highest quality to all its customers at the same time as striving to develop a business that is sustainable.† This statement emphasises the diversity of customer groups Inditex targets. TheShow MoreRelatedZara - Marketing Research1034 Words   |  5 PagesTask 1 zara marketing research Zara is a spanish chain store in Inditex group, one of the worlds biggest retail store in the world who are also owners of zara home. Zara is a fast industry bt its unique business model is based on innovation and flexibilty. they design and distribute a garment to the market in just 15 days. they always have new products but in limited supply. the customer feels there is an exclusitivity , since only a few items are on display even though stores are plannedRead MoreZara Case1472 Words   |  6 Pagesexpected to show high resistance in response to it. Even though Zara has a decentralized decision making process, the retailer’s IS department exercises absolute autonomy on the IT infrastructure and design. The fact that â€Å"only one person had left the department† in the past 10 years further confirms that the retailer is suffering from cognitive and action inertia, and thus creating a huge barrier for such upgrade. Nevertheless, Zara should still perform such upgrade in the long run. Q1b. ShouldRead MoreZara, The Largest International Fashion Companies Of The World1608 Words   |  7 PagesZara is one of the largest international fashion companies of the world. Founded in 1975 in La Coruà ±a by Amancio Ortega, the company still lives by the simple idea of linking the customer demand to manufacturing, and link manufacturing to distribution. In 1985, Inditex became the holding company of Zara and Jose Maria Castellanos. Ortega and Castellanos both believed that in order to success in the type of business they wanted to build, the use of computers, a quick response to customers and disintegratedRead MoreZara Postponement Strategy1702 Words   |  7 Pagesï » ¿The case of Zara – The Postponement strategy I) Introduction In order to compete in the world of rising globalization and shortening of product life cycle nowadays, firms have to deal with the demand for increasing product variety to meet the diverse needs of customers. 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Operating Filial When ZARA first started opening stores outside of SpainRead MoreZara Case Study1404 Words   |  6 PagesCompany Case: Zara: The Technology Giant of the Fashion World Identification of the Problem/s or Issue/s Zara, a Spanish-based chain owned by Inditex, is a retailer who has taken a new approach in the industry. By owning its in-house production, Zara is able to be flexible in the variety, amount, and frequency of the new styles they produce. With their unique strategy, Zara has the competitive advantage to be sustainable. In order to maintain that advantage and growth they must confront certainRead MoreThe Marketing Strategy Of Zara1394 Words   |  6 Pagescompanies operating in today’s business environment. The success of companies largely depends on its marketing strategies. It has thus become necessary for businesses to invest heavily in marketing to have chances of succeeding in the market. Zara, just like any other big business organization employs unique marketing model to help it achieve its targets. This paper examines the fashion marketing strategy and brand development strategies of Zara. Company Background Zara is a Spanish chain store of InditexRead MoreZara Operation Strategy1286 Words   |  6 PagesContents Introduction 2 Business Concept 2 Four Perspectives of Operation Strategy 2 Top-Down versus Bottom-Up Perspective 3 Top-Down Perspective 4 Bottom-Up Perspective 4 Market Requirement versus Operations Resources 4 Market Requirement Perspective 5 Operation Resources Perspective 5 Conclusion 5 Reference 6 Introduction Zara is a Spanish fashion and accessories retailers that founded in 1975 by Amancio Ortega and Rosalia Mera (Ledesma, 2013). Zara designs, manufacturesRead MoreZaras Case Study1373 Words   |  6 Pagesdoes it differ from its Competitors? â€Å"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) According to Clayton Christensen in order to process you Value Proposition you must look at the following (Harvard Business Review) Zara’s value proposition isRead MoreZara Fasion King1741 Words   |  7 PagesCase discussion ZARA: FAST FAHION 1) What is Zara’s basis of competitive advantage? How does it travel globally? At the heart of Zara s success is a vertically integrated business model spanning design, just-in-time production, marketing and sales. The key to this model is the ability to adapt the offer to customers desires in the shortest time possible. For Zara , time is the main factor to be considered, above and beyond production cost. The group believed that vertical integration gave