Fashion and Zara
OPERATIONS STRATEGY FOR ZARA COMPANY
Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy, through the reconciliation of market requirements with operations resources. It is also a tool that helps to define the methods of producing goods or a service offered to the customer.
Zara Company deals in the fashion industry. Zara’s success in the apparel industry is attributable to the following operation strategies;
Strength, Weaknesses, Opportunities and Threat Analysis
Zara has three major strengths among others that gives Zara a niche in its operations:
Research and Development: Extensive market research providing a constant stream of inputs to the product development process rather than in batches or discrete seasons.
Location strategy: Locating various business functions in close proximity of the headquarters, and tight control, allows the various functions to co-ordinate and take joint decisions very quickly. Control also refers to early investment in raw material, and direct or indirect ‘ownership’ of processing and production capacities. These provide the capability to respond very quickly to the market research-influenced decisions.
Technology: Communication and Information Technology are absolutely vital to managing the constant interface of various functions and management of the huge variety of product information. Zara as a fashion firm is technology savvy. Zara has embraced the latest technology in its operations. The blend of technology-enabled strategy that Zara has unleashed seems to break all of the rules in the fashion industry. This strategy has made Zara shun advertising and rarely runs sales. Zara is highly vertically integrated, keeping huge swaths of its production process in-house. This is just but another strength that Zara has over its competitors. Nearly 60% of Zara’s merchandise is produced
Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy, through the reconciliation of market requirements with operations resources. It is also a tool that helps to define the methods of producing goods or a service offered to the customer.
Zara Company deals in the fashion industry. Zara’s success in the apparel industry is attributable to the following operation strategies;
Strength, Weaknesses, Opportunities and Threat Analysis
Zara has three major strengths among others that gives Zara a niche in its operations:
Research and Development: Extensive market research providing a constant stream of inputs to the product development process rather than in batches or discrete seasons.
Location strategy: Locating various business functions in close proximity of the headquarters, and tight control, allows the various functions to co-ordinate and take joint decisions very quickly. Control also refers to early investment in raw material, and direct or indirect ‘ownership’ of processing and production capacities. These provide the capability to respond very quickly to the market research-influenced decisions.
Technology: Communication and Information Technology are absolutely vital to managing the constant interface of various functions and management of the huge variety of product information. Zara as a fashion firm is technology savvy. Zara has embraced the latest technology in its operations. The blend of technology-enabled strategy that Zara has unleashed seems to break all of the rules in the fashion industry. This strategy has made Zara shun advertising and rarely runs sales. Zara is highly vertically integrated, keeping huge swaths of its production process in-house. This is just but another strength that Zara has over its competitors. Nearly 60% of Zara’s merchandise is produced