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Zara - Fast Fashion from Savvy Systems - Essay Example

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Zara - Fast Fashion from Savvy Systems

The essay "Zara - Fast Fashion from Savvy Systems" talks about fast fashion of Zara. The businesses today operate in real-time in the global market place and they have to leverage comparative advantage. Thus, tapping into the foreign markets and the process of market entry, in addition to the innovative practices and technology can give a firm comparative advantage. Zara needs to ascertain the strategy for the way forward. The organization has a customer-focused vision since the beginning and this continues to be the defining feature. Their challenge is to live up to customer expectations. The group philosophy can be summed up as “good designs and good quality at affordable prices” (Business Week, 2004). They have total control over the fashion process right from designing to manufacturing and distribution. The company aims to differentiate itself because of its fast fashion approach but intense competition has diluted this advantage. To alter the strategy an organization needs to evaluate its position compared to its competitors. This requires a review of its internal and external business environment. The external environment is being evaluated based on the PESTILE and the industry analysis is based on Porter’s Five Forces.The Political condition of the nations were Zara enters is fairly stable and its mode of entry depends upon the local/regional situation. Accession of Spain into the EU benefitted Spain as the export policies were revised and tariff deregulation took place. ...Show more
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Summary

The essay explores Fast Fashion from Savvy Systems and the brand Zara. Described as the most innovative and devastating retailer in the world (CNN, 2001), Zara, the Spanish clothing company, breaks all rules of the apparel industry through its low-cost approach…
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