Mis Zara
Key Questions
1. Comparing to other fashion retail companies, what is ZARA’s competitive strategy?
• Speedy response to consumer needs
Zara guarantees that its stores are able to carry clothes that the consumers want at that time. Zara can move from identifying a trend to having clothes in its stores within 30 days. That means that Zara can quickly identify and catch a winning fashion trend than other competitors. . ‘Fast fashion’, it brings customers in to stores to see what is new, what they must not miss. Zara’s understanding of customers drives its decisions for how it designs, produces product, and stocks its stores. As a way of appeal to customers, they produce small products of each style. Zara wants customers coming back into their stores, where they will always find new products, in limited quantities.
• Inventory & retail management
Product information and inventory management being able to manage thousands of products as well as their physical inventory, gives Zara’s team the capability to design a garment with available stocks rather than having to order and wait for the material to come in. In other word, they put off their time for produce as much as possible. It is different to other garment manufacturers who are struggled with their large inventory.
• Human resource organization
Zara operates with a lean organizational structure, which emphasizes high performance. The lean organizational structure also works to reduces the number of managerial hierarchy levels and decentralize decision-making. This model limits the business’s focus on redundant administrative procedures. From design to delivery it takes the company only five weeks for a garment and only two weeks for an existing model. This method shortens the product life cycle, which allows for great success in meeting consumer needs. Customer satisfaction is of extreme importance to Zara and the consumer’s purchases truly shape almost all of Zara’s business decisions. Zara and its
1. Comparing to other fashion retail companies, what is ZARA’s competitive strategy?
• Speedy response to consumer needs
Zara guarantees that its stores are able to carry clothes that the consumers want at that time. Zara can move from identifying a trend to having clothes in its stores within 30 days. That means that Zara can quickly identify and catch a winning fashion trend than other competitors. . ‘Fast fashion’, it brings customers in to stores to see what is new, what they must not miss. Zara’s understanding of customers drives its decisions for how it designs, produces product, and stocks its stores. As a way of appeal to customers, they produce small products of each style. Zara wants customers coming back into their stores, where they will always find new products, in limited quantities.
• Inventory & retail management
Product information and inventory management being able to manage thousands of products as well as their physical inventory, gives Zara’s team the capability to design a garment with available stocks rather than having to order and wait for the material to come in. In other word, they put off their time for produce as much as possible. It is different to other garment manufacturers who are struggled with their large inventory.
• Human resource organization
Zara operates with a lean organizational structure, which emphasizes high performance. The lean organizational structure also works to reduces the number of managerial hierarchy levels and decentralize decision-making. This model limits the business’s focus on redundant administrative procedures. From design to delivery it takes the company only five weeks for a garment and only two weeks for an existing model. This method shortens the product life cycle, which allows for great success in meeting consumer needs. Customer satisfaction is of extreme importance to Zara and the consumer’s purchases truly shape almost all of Zara’s business decisions. Zara and its