Case Study
UIBS Strategic Management Individual Assignment , Meric Oztekin
1. Course Exist Case: Zara – Business Model, Competition, Competitive Advantages, and Strategies
Read the case Zara – Fast Fashion, and answer the following question. Submit your answer within 2 pages.
1. What is Zara’s distinctive business model? Follow the descriptive points given in the lecture note for session1 and write it like a good story;
2. What are Zara’s key strong resources and capabilities? What competitive advantage have they created over rivals?
3. Compare Zara’s financial performances with major competitors;
4. Is Zara’s competitive advantage sustainable in view of globalization?
ZARA COMPANY
PRODUCTS
Zara has 5 brands:
1. Zara Woman, which is a brand a little more formal. For women at their work or for women that go out but who give importance to their outlook to be more serious.
2. Zara Basic (woman), which is a brand that consists of all basics.
3. Zara TRF, for younger women, which includes trendy clothes for young girls who love to be up to fashion.
4. Zara Men, with all the clothes for men. Clothes are both casual and formal.
5. Zara Kids.
Zara's global strategy is to offer cutting edge fashion at affordable prices. They always have the latest trends, and you can find the trendiest pieces mixed with the basics.
COMPANY IMAGE
Zara's business model is based on innovation and flexibility. They are able to design the clothes and distribute them to the market in just fifteen days.
They possess always new products but in limited supply. The customer feels there is an 'exclusivity' due to the fact that few items are on display although there are spare spaces in the stores.
*However, empty racks at Zara don't drive customers to other stores. Being out of stock in one item helps to sell another.
By reducing the manufactured quantity of each style, Zara creates artificial scarcity and lowers the risk of having stock
1. Course Exist Case: Zara – Business Model, Competition, Competitive Advantages, and Strategies
Read the case Zara – Fast Fashion, and answer the following question. Submit your answer within 2 pages.
1. What is Zara’s distinctive business model? Follow the descriptive points given in the lecture note for session1 and write it like a good story;
2. What are Zara’s key strong resources and capabilities? What competitive advantage have they created over rivals?
3. Compare Zara’s financial performances with major competitors;
4. Is Zara’s competitive advantage sustainable in view of globalization?
ZARA COMPANY
PRODUCTS
Zara has 5 brands:
1. Zara Woman, which is a brand a little more formal. For women at their work or for women that go out but who give importance to their outlook to be more serious.
2. Zara Basic (woman), which is a brand that consists of all basics.
3. Zara TRF, for younger women, which includes trendy clothes for young girls who love to be up to fashion.
4. Zara Men, with all the clothes for men. Clothes are both casual and formal.
5. Zara Kids.
Zara's global strategy is to offer cutting edge fashion at affordable prices. They always have the latest trends, and you can find the trendiest pieces mixed with the basics.
COMPANY IMAGE
Zara's business model is based on innovation and flexibility. They are able to design the clothes and distribute them to the market in just fifteen days.
They possess always new products but in limited supply. The customer feels there is an 'exclusivity' due to the fact that few items are on display although there are spare spaces in the stores.
*However, empty racks at Zara don't drive customers to other stores. Being out of stock in one item helps to sell another.
By reducing the manufactured quantity of each style, Zara creates artificial scarcity and lowers the risk of having stock