Zara Business Model
By Wendy –Zara exericse 1
Q5. Who are the customer ?
The target market is broad, women, men, children that likes fashion and is sensitive to fashion.
Q6 .Who are the customers, and what product/ service attributes do they consider important?
The target market is very broad, Zara do not define their target by segmenting ages and lifestyles like what traditional retailers are doing. Its target market is working in big cities, with mid range income, a young, educated person that likes fashion, care about the looks and enjoy shopping. Zara segment their product line by women’s (60%), men’s (25%) and the fast growing children’s (15%) department.
The Product attribute that the customer consider important are as below:
Cost
Zara offers reasonably price, radical clothing, the cost should be at affordable level and is acceptable by the public. Currently the price is combatively higher than H&M. customers effectively bore the extra costs of supplying it from Spain
Response Time
Customers require Zara to offer fast response to the fashion trend.
Variety
Zara has a vertical scope and sell clothing for men, women and children, and women section is the major section of these clothing retailers. Zara owns much of its production, and can offer more choices in more current fashions than many of its competitors. It delivers merchandise to its stores twice a week, and since re-orders are rare the stores look fresh every 3-4 days. Quality
Zara runs its own design and production unit in La Coruna, Spain, which leads cancellation of the large out-sourcing operations. It is modern, offering up-to-date lifestyle yet standard clothing lines for men, women and children. It is not of the top quality, which will last only for some seasons.
Q7. What process competencies should the organization aim for ?
Process Competency (Internal)
Cost
It should offer reasonably price that is affordable by customer.
Flow time
Flow time is short,
Q5. Who are the customer ?
The target market is broad, women, men, children that likes fashion and is sensitive to fashion.
Q6 .Who are the customers, and what product/ service attributes do they consider important?
The target market is very broad, Zara do not define their target by segmenting ages and lifestyles like what traditional retailers are doing. Its target market is working in big cities, with mid range income, a young, educated person that likes fashion, care about the looks and enjoy shopping. Zara segment their product line by women’s (60%), men’s (25%) and the fast growing children’s (15%) department.
The Product attribute that the customer consider important are as below:
Cost
Zara offers reasonably price, radical clothing, the cost should be at affordable level and is acceptable by the public. Currently the price is combatively higher than H&M. customers effectively bore the extra costs of supplying it from Spain
Response Time
Customers require Zara to offer fast response to the fashion trend.
Variety
Zara has a vertical scope and sell clothing for men, women and children, and women section is the major section of these clothing retailers. Zara owns much of its production, and can offer more choices in more current fashions than many of its competitors. It delivers merchandise to its stores twice a week, and since re-orders are rare the stores look fresh every 3-4 days. Quality
Zara runs its own design and production unit in La Coruna, Spain, which leads cancellation of the large out-sourcing operations. It is modern, offering up-to-date lifestyle yet standard clothing lines for men, women and children. It is not of the top quality, which will last only for some seasons.
Q7. What process competencies should the organization aim for ?
Process Competency (Internal)
Cost
It should offer reasonably price that is affordable by customer.
Flow time
Flow time is short,