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Case study on Zara - Essay Example
Author : carrollmaverick
Pages 18 (4518 words)
The present study has been conducted in order to provide an in-depth analysis of the business environment the fast fashion and apparel industry along with the analysis of the business strategy of Zara. The study look to provide recommended strategic actions that the company may need to adopt to achieve the desired objectives such as globalization. …
Zara is one of the leading global fast-fashion brands. The organization has implemented both cost leadership and differentiation strategy as their business level strategy. They have effectively implemented vertical integration strategy in their supply chain network. Though Zara is one of the renowned and popular global brands, the organization may face several difficulties through their centralized manufacturing strategy. Their business model is cost-effective and they have set up business goals and objectives effectively basis on the model. It is feasible that the execution of determined strategies have bought success for Zara. Finally, it can be said the Zara should look to expand their business and adopt decentralize manufacturing process in the developing BRICK countries.
Zara quickly develops the new feature and designs as the organization has the fast development option from the concept to point of sales. On an average, it takes 6 weeks. The positioning of Zara clearly address that it is not a luxurious fashion brand but the organization used to target the price sensitive people with the help of fashionable designs of clothes in reasonable price level. They have always differentiated their product line by the relentless introduction of latest and new designed clothes in less quantity at rapid speed and the affordable price level of the products is the evidence of the large scale customization necessity of the target audience. ...