ZARA CaseQuest

ZARA CaseQuest Assignment example
Masters
Assignment
Marketing
Pages 7 (1757 words)
Download 0
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). …

Introduction

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. ...
Download paper
Not exactly what you need?

Related papers

Zara - spanish clothing company
Zara’s performance can be observed to be outstanding in the way it manages its operations timing in meeting the ever-changing demands of the customers. The company is in a “cutting edge”, capable of designing, manufacturing and delivering new styles of clothes and receiving “full price on 85 percent of its products”1. The present research focuses on a study on the Zara Spanish Clothing…
Zara
The firm deals in design, manufacturing and distribution of clothes while keeping up to the new trends in the market. In May 2001, the company listed 25% of its shares in the stock during the initial public offer for 2.3 billion Euros thus making the founder the richest man in Spain, having retained 61.2% of the company shares. The valuation of the company in 2001 was 12 billion Euros. The…
Zara Case
This realization made him open the first Zara store in 1975, in La Coruna (The Economist, 2001). With time, Zara Company decided to manufacture clothes for men, women, children as well as sportswear. In this expansion move, the company concentrated on women’s fashion clothes. The company expanded rapidly in the fashion and industry in 1980s in Spain. This expansion made the Zara group think…
Zara Company Analysis
This is mainly on account of the fact that the industry is in its maturity stage. The analysis of the internal market reveals that the company is faring well because of its strong supply chain and its vertical integration. As the company is expanding operations, it needs to reviews its strategy. The analysis leads up to two feasible strategies for the company, namely global expansion and…
Zara Case Study
Moreover, an analysis of the internal environment is performed to determine the strengths as well as weaknesses of the company. It has been observed that there are certain incidents in relation to adverse treatment of employees that has affected the stability of the company. Moreover, the employees are also perceived to be provided with deprived working environment. These incidents are accountable…
Zara Case report
Porter’s Five Force analysis emphasizes that market trends of apparel and fashion industry are comparable to certain other industries and going to be more challenging in near future. The report critically explains the supply chain research as one of the strongest point of Zara; because it’s flexible structure entertains the primary activities to be executed smoothly. Primary supporting…
Analyse Zara
Other firms also choose to outsource with the objective of enabling the firm reduce its costs through specialization and creating efficiency in the labor and resources of the firm (Porter 1996). Other firms also in the efforts to achieve the same try to gain control over the whole firms through as many departments as possible. This they are likely to achieve by the analysis of its value chain.…