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ZARA CaseQuest - Assignment Example
Pages 7 (1757 words)
The Zara Company operates globally in the apparel industry and is identified as a market leader. This comes as a result of various business strategies adopted by the company in undertaking globalization of operations. The company constitutes of a single manufacturing plant located in Spain, where all products are manufactured (McAfee, Dessain, & Sjoman, 2007). …
Using centralized manufacturing, the company has maintained standards within the global arena as products available anywhere exhibit no discrepancies in quality. This has contributed significantly to the high levels of customer satisfaction, leading to customer loyalty. The company continues to maintain customers through ensuring similar levels in product quality, hence assuring customers of quality in Zara products. High quality products have in turn brought high sales placing the company in a global market leadership position. Combinations of other business strategies aimed at strengthening the company position have also had influence in maintaining the company’s position, globally. Business Model (GAP) Gap Company has taken the approach of outsourcing manufacturing in different Asian countries. Outsourcing in these countries aims at utilizing the cheap labor available in Asian countries. The company hopes to reduce production costs through utilization of cheap labor, and achieve significant profit margins (George & Bock, 2012). The outsourcing model of manufacturing presents several risks to the business in standardization of numerous business elements. ...
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