Zara Business Model (Case Analysis)
Zara Case Quest
4/5/2011
Done By: Faisal Alsawaihan
Zara case Quest
What Business is Zara In? (Business model)
Zara is one of the Inditex group, which they mainly in the apparel industry. It considers the most successful brand in this group and most of profit margin is coming from Zara stores that are widespread around the world (76countries) and their main products of apparel are for men, women, and kids. As we can see from the article (It for fast fashion) and Zara’s annual report in 2009, the business model of Zara is based on the link between three important processes, Ordering, fulfillment and, design and manufacturing. To explain more, Zara’s business model can be addressed in the following: 1- Linking customers to manufacturing process through very organized methodology that is depending on involving effective groups in this process such as commercials and store managers. This method allows to Zara to respond very quickly to the demand in the apparel market at the same time they cope with the new fashions and styles. Zara always tries to produce the styles that is still hot and having demand between target customers. The group is working hard to meet the information demands of customers even with communicating them via social network. These followers in some cases has exceed 2 million people which reflects clearly how is Zara becomes one of the most successful business model in apparel industry around the world. They send their fast-fashion distribution model to users via the internet. That does include the latest collections hitting the stores for every customer segment. Moreover they combined their experience to insure that all collections are satisfying most of their customers. We can see here the ability in Zara’s business model to be very strong by comparing with other Apparel brands in terms of disruptive innovation. Zara can be the leader in both, designing for different set of consumers and lowering the price at the end of product cycle to
4/5/2011
Done By: Faisal Alsawaihan
Zara case Quest
What Business is Zara In? (Business model)
Zara is one of the Inditex group, which they mainly in the apparel industry. It considers the most successful brand in this group and most of profit margin is coming from Zara stores that are widespread around the world (76countries) and their main products of apparel are for men, women, and kids. As we can see from the article (It for fast fashion) and Zara’s annual report in 2009, the business model of Zara is based on the link between three important processes, Ordering, fulfillment and, design and manufacturing. To explain more, Zara’s business model can be addressed in the following: 1- Linking customers to manufacturing process through very organized methodology that is depending on involving effective groups in this process such as commercials and store managers. This method allows to Zara to respond very quickly to the demand in the apparel market at the same time they cope with the new fashions and styles. Zara always tries to produce the styles that is still hot and having demand between target customers. The group is working hard to meet the information demands of customers even with communicating them via social network. These followers in some cases has exceed 2 million people which reflects clearly how is Zara becomes one of the most successful business model in apparel industry around the world. They send their fast-fashion distribution model to users via the internet. That does include the latest collections hitting the stores for every customer segment. Moreover they combined their experience to insure that all collections are satisfying most of their customers. We can see here the ability in Zara’s business model to be very strong by comparing with other Apparel brands in terms of disruptive innovation. Zara can be the leader in both, designing for different set of consumers and lowering the price at the end of product cycle to
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