Zara fashion
Zara is a clothing and accessories retailer selling stylish apparel at affordable prices, and it is also the most profitable brand of the Spanish clothing retail group Inditex SA. Ortega planned for this new Zara outlet, located near his factory in La Coruna in northern Spain, to sell this overstock merchandise himself. Since then, Zara has expanded into 500 stores in 68 countries as of January 2007 and has become a leader in customized fashion retailing. This assignment presents core competencies to help Zara achieve competitive advantages in fashion industry. Besides, we also offer five competitive objectives about quality, speed, flexibility, dependability and cost to evaluate efficiency in business operation of Zara. Then analyzing supply chain management to consider how Zara maintain, improve and develop its strategies and business. Finally, the assignment will discuss about Zara’s quality not only in operation system but also in human management.
Firstly, the essays will discuss about Zara’s core competencies. An important content in the internal environment analysis of business to strategy planning is to analyze the resources, capabilities and core competencies of the business, competitive advantage and competitiveness of enterprises. The purpose of internal analysis of the enterprise is to identify and evaluate potential resources as well as existing that create sustainable competitive advantage of enterprises; identify obstacles in maintaining the sustainable advantages competitive. This analysis is important basis in the selection of the business strategy. Core competence is unique strength that permits the company to achieve the superiority comparing rivals in strategy, business operation, quality, innovation and customer responsiveness.
Zara's success derives from core competencies of the company in design, manufacturing, warehousing, distribution and retail. Its capabilities link functions
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